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To: chartseer who wrote (27763)1/4/2001 8:16:12 AM
From: BWAC  Read Replies (2) | Respond to of 53068
 
This is what I don't understand about all the focus on charts. Help me out here?

Theory: ODP and SPLS are basically interchangeable to the customer. Both are national, with some overseas units. Both are well run businesses, in a not so exciting sector, growing at essentially the same rate, with the same forward growth prospects. So valuation ratios should be similar?, In theory.

What do you have:

ODP vs. SPLS
Sales $11 Billion vs. $10 Billion
PE 9 vs. 23
Book Value $6 vs. $4
ROA 7% vs. 7%
ROE 16% vs. 16%
Market Cap $2.5 Billion vs. $6.8 Billion!!!!!!

So why is SPLS the better buy, should a good looking chart overide the fact that it is valued at 3X ODP? Or does any of that even matter anymore?