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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Ken W who wrote (7801)	8/17/1998 7:03:00 PM
From: Cary C	Read Replies (1) \| Respond to of 29382

>>I certainly did not intend to cause a fundimental arguement of OMX and given my limited ability I am no match for the esteemed Cary,<< ROFLMAO..... Thank you for the kind words though. I am sure I have learned more from you thatn you from me. I will take your word for them buying back 1.5 million shares since Nov. 97. In looking at the quarterly from DEC 97 and quarterly from Mar 98, shares out in 97 were 124,037,000 and Mar 98 124,594,000. An increase of 557,000 shares. Weighted shares are even greater, 127,049,000 vs. 125,870,000. This isn't to say that it wouldn't have been higher if they hadn't been repurchased. For them to expand, it is apparent to me that they will have to build new stores or buy an existing company. I don't believe the fact they they showed (1%)growth and OD and Staples showed 7% and 13% that they will be able to grow same store sales to achieve the type of growth that the analysts are expecting. They put the emphasis on declining computer related sales. Both Office Depot and Staples sell the same products. Their cash or equivilents has gone from 80.5 million to 44 million (some or most probably do to buyback like you mentioned). CEXP and OFIS are two prime examples in the office supply industry as to what can happen to a stock if they do not follow their business plan. Both companies were darlings of wallstreet in the sector. Both handled the expansion and growth terribly. Shareholders paid dearly. I believe that Office Max's declining revenue could be a tail tail sign of things to come. Because of past experiences with the likes of CEXP and OFIS, I don't think institutions will be as patient. This is just a hunch on my part with no factual information but I don't believe that Staples or Office Depot consider them serious competition. If or when they do, they will either squash them or SEC willing, buy them out. I believe that we are still going to see consolidation by the big players in this industry. Cary