Ken, hope you've recovered. Have you seen this ?
OfficeMax Resumes Stock Repurchases (OMX)
Friday, September 18, 1998
More than 200 firms are taking advantage of the market's
recent decline to repurchase their stock at low prices on
the open market. The latest buyback news is that OfficeMax
(OMX) has resumed its $200 million stock repurchase plan,
roughly 15% of its outstanding shares. America's number-
three office supplies retailer, behind Office Depot and
Staples, curtailed the program on August 21 as it was
anticipating a merger. Before the merger talks, OfficeMax
had repurchased nearly 1.2 million shares.
"While no business is recession proof, the discount office
supply business is about as steady as it gets," said buyback
expert David Fried, who recommends buying the stock.
Analysts predict earnings at OfficeMax will continue to grow
at 23% per year. The firm has 120 new stores slated to open
this year as well as ten stores apiece in Japan and Mexico.
Though the firm continues to grow, OMX stock sells for less
than 50% of its 52-week high of $19, according to Fried. He
predicts OMX will eventually exceed its former price highs
over the next two years. "We think OfficeMax is greatly
undervalued," Fried says, as it now sells at its book value
and has had the downside potential beaten out of it. "Buy
OfficeMax now for a potential double to triple in two to
three years."
For more on David Fried's recommendation see "Hotline,"
September 15, 1998, The Buyback Letter. David Fried provides
wealth-building opportunities in companies repurchasing
their stock.
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