Office Product Stocks - ODP/SPLS/OMX/VKNG/CEXP/OFIS/BOP Message Board

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Non-Tech : Office Product Stocks - ODP/SPLS/OMX/VKNG/CEXP/OFIS/BOP

SPLS 10.25

0.0%

Sep 28 5:00 PM EST

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To: Robert Douglas who wrote (285)	9/5/2000 12:07:50 PM
From: BWAC	Read Replies (1) of 297

Exactly as I figured. Another question? Have you ever worked in or managed a retail store? <the OPD buyback is good news because it gives them less capital to expand.> You bet it is. But good for ODP investors. The shares outstanding are being snapped up quickly with their free cash flow. Quarter by Quarter. Meaning you own, % wise, more and more of their earnings. And thats the idea. How much do you want to pay for earnings. You chose to pay 3x. I like 1x. And when ODP is back in favor I can collect 3x. Patience is all that is required. Meanwhile your risk is that SPLS runs into some of the very same problems that its more mature competitor ODP currently has. Then your 3x turns into 1x. Expansion has slowed, but not stopped. Conversely cost and expenses of expansion will slow and earnings growth will be repaired. Personally, I think you have missed the mark on the relative comparisons and will be left to deal with the valuation risk built into SPLS.

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