Lioness Associates, Inc.

Economic & Corporate Risk/Yield Reports

August 5, 2012 - Staples (SPLS) Update

As noted in the March 1st article below, I suggested that Staples would likely do better than the DOW over the first part of the year.  The results are shown in the chart (comparison of Staples to the DOW from Yahoo finance) to the right.    The original SPLS 2012 Delta Core/Transient graph depicts a peak around the April 1st timeframe and that corresponds with the Staples price peak at the end of March.

With the expectation that the general economy will get better later this year, this stock will likely also do better but in that case, is riding a "rising tide" from our perspective.

There are some astrological configurations that suggest that this store is going to fine-tune it's image/products near the fall/winter period with the intent of further attracting the type of client they would like to reach.  


March 1, 2012  -- Staples (SPLS) Risk/Yield for 2012

So where is Staples heading for 2012 ...

Staples seems to be mired in some mud lately and it's having a hard time getting traction but, it has the potential to overcome it's shortcomings and move on to better performance compared to the DOW over the first 1/2 of 2012.

We suspect that there is more rigidity in the corporate offices lately and while in all likelihood it curtailed pursuing multiple opportunities in the short term, over the long term it should provide better focus on important core direction and projects.

As the recovery gains steam, small businesses in the home are going to surge ahead and that's where Staples can differentiate itself from the crowd. The new Martha Stewart line should appeal to customers looking to organize their business but, maybe it didn't go far enough - what about taking an extra step with a line of office furniture.

This company could perform better than the DOW over the early March to late July period of 2012. During that period the Dow is likely to trend in a range with a possible slight down shift while Staples has the potential to climb above that.  Issues with the European economy are already noted and likely accounted for in financial estimates and with that, have less ability to surprise. 

The second 1/2 of 2012 may not be as lucky for Staples as it's performance  may not differentiate itself from the DOW.


Staples 2012 Delta Core/Transient

Staples 2012 Risk/Yield