Paul Harris, CFA
Corp. Express
CXP-N
TOP PICK
Aug 12, 2005
An office supply company. Made a large acquisition, took on lots of debt and the economy fell apart. Sold a large business they were in and reduced the debt considerably. Rebalanced their balance sheet by buying back preferred stock. Has great organic growth. All B to B business, no retail stores. Top 4 management owns 18%.
Office supplies business. Stock has fallen quite a bit in the last little while. They do their business B to B or through catalogue so there is very little capital expenditure and lots of free cash flow. Good price.
(A Top Pick Aug 12/05. Up 4.8%.) In the office supply business. Doesn't have any stores but operates B to B and catalogue. About 65% of revenue is from the US. If things continue to do well, they may have no debt by 2007. Growing quite rapidly.
(A Top Pick Aug 22/06. Up 11.6%.) Cheap. No retail stores, only catalogue and Internet. Highly free cash flow model. Good balance sheet. Expect to pay off their debt at the end of this year.
Office supply company. Compete with Staples (SPLS-Q) and Office Depot (ODP-N) but have no retail outlets. Have a lot of free cash flow and brought down their debt. Low multiple. Pays a good dividend.