Tuesday, May 22, 2012

Investopedia: Staples Seems Stuck

Eventually, even the best-run companies run out of levers to pull when it comes to producing more growth. Staples (Nasdaq:SPLS) is a fine retailer in many respects, and I don't believe that there are many (or perhaps "any") retailers that have built a quality

Unfortunately, Staples is stuck in an oversaturated North American market that just isn't likely to grow fast enough, while the ongoing economic problems in Europe have turned the international operations into a loss-maker. While these shares do indeed look meaningfully undervalued, they could stay undervalued for a quite a while yet, unless management can sell the Street either on new growth plans or a more aggressive cost-cutting strategy.

Please click here for more:
http://stocks.investopedia.com/stock-analysis/2012/Staples-Seems-Stuck-SPLS-OMX-ODP-WMT-COST0522.aspx

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