SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : Office Product Stocks - ODP/SPLS/OMX/VKNG/CEXP/OFIS/BOP
SPLS 10.250.0%Sep 28 5:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Olivier Resca who wrote (109)7/1/1997 2:44:00 PM
From: Joe Waynick   of 297
 
Overall, Office Depot is a fundamentally sound company, so I wouldn't worry too much about today's activity. The fundamentals of the company have not changed.

Consider:

1) 52WH = $23.75
2) 1st qtr earnings = .24/share
3) Estimated 1997 earnings (mean) = .95/share
4) PE = 21.75
5) Institutional owners = 341

With a P/E of 21.75 and expected earnings for the year of $.95 you get a fair value for the stock of $20.66 (21.75 x .95). At it's current price of $15.50, that's a potential 25% gain for the year!

If you sold the July 20 calls for $2 or more -- congratulations! For ten contracts that's a sweet $2,000 profit in premimums. I just covered my options on the "DIP(PY)" at 1/16. I KEEP 90% OF THE CALL BUYERS MONEY I GOT FOR THOSE BABIES!!!

Now I'll wait a few weeks for the eventual upswing and resell the July or August $17.50 or $20.00 calls and "DO" it again! (Aka Herman Matos).

Above all, no matter what happens to the stock price, I want to keep my cost basis below the market, and I do NOT want to be called out! I want to keep playing this stock for 6-7 months until my cost basis is ZERO. I can then take my original capital, (courtsey of all those friendly call buyers out there), and play other stocks. Meanwhile, I keep pumping ODP for more MONTHLY CASH FLOW for as long as possible.

That's how I play fundamentally sound companies for long-term monthly CASH FLOW.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News