August 10, 2012
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, office-supply retailer Office Depot (NYSE: ODP ) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Office Depot's business and see what CAPS investors are saying about the stock right now.
Office Depot facts
||Boca Raton, Fla. (1986)
||Chairman/CEO Neil Austrian
CFO Michael Newman
|Return on Equity (average, past 3 years)
||$488.8 million / $678.3 million
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 21% of the 617 members who have rated Office Depot believe the stock will underperform the S&P 500 going forward.
Just yesterday, one of those Fools, Kentexacan, succinctly summed up the Office Depot bear case for our community:
This is one of those dead business model shorts (Blockbuster comes to mind) that you could see coming from a mile away and. I kick myself for missing out on this one in real life. ...
Yes they are trading for near their cash value. But they are burning through cash at an incredible rate. ...
Advertising is theoretically supposed to drive revenue. I am not seeing this NASCAR sponsorship equating to driving the revenue line. Take a look at the sales numbers if you so desire.
Overall this is a dead long term business model. [A]s Bob Dylan Said "the times are a changing"
If you want market-thumping returns, you need to protect your portfolio from any undue risk. Luckily, we've found another retailer we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.
Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.