Jim Huang Staples SPLS-Q HOLD May 12, 2014

Unfortunately is in a business that is declining from a retail point of view. Companies don’t use as much of their products as in the past. More and more orders are placed on-line so the stores are just costing them more and more to operate.

Market leader in office supplies. Problem is that the whole world has changed for them. More and more businesses order on line and company is stuck with big leases.

Growth rate has really declined to low single digits. Stock is expensive. Would not own this stock.

Was on his Stock Watch list, and then had a run and was taken off the list. He isn’t watching this one that closely. Good online growth, but the stores themselves have been having some troubles. A lot of the companies in this sector are downsizing. If this got under $10, he would be more interested. A leader in its field, and he loves investing in the leaders as contrarian plays.

In the midst of a structural shift in the retail sector and you may want to avoid this. With stores closing, they are in a shrinking space.

If this company does eventually buy Office Depot (ODP-Q), that is a positive because they are consolidating a very competitive industry. There is a lot of competition from online retailers. Not an industry where she sees a lot of strong secular growth and it is relatively mature. Not a space that she is particularly interested in.

(Market Call Minute) It is one of the underperforming retailers. Prefers CSCO-Q.

He would rather own advertising companies in the consumer discretionary sector. You get a better dividend and a smoother ride.

Same-store sales are falling. Office supplies brick/mortar are just killing them right now, and they don’t have a great e-commerce presence. It will hang in, because it is only one of 2 out there, but it will struggle.