Office Depot NewsBite - ODP Expects Drop in Same-Store Sales

Tuesday, July 08, 2008 10:51 AM EDT

Office Depot Inc. (ODP) opened at 8.88. So far today, the stock has hit a low of 7.11 and a high of 9.24. ODP is now trading at 6.92, down 3.49 (-39.30%). The stock hit its 52 week high of 31.07 in July and set its 52 week low of 7.11 today. ODP has been slipping for the past year. Office Depot announced this morning its second-quarter sales dropped due to the weak economy. The office supplies retailer also forecast a 10 percent drop in quarterly same-store sales, and predicted the economic environment to be "difficult" for the rest of the year. Technical indicators for the stock are bullish but deteriorating while S&P gives ODP a neutral 3 STARS (out of 5) hold rating. If you’re looking for a hedged play on this stock, consider an October bear-call credit spread above the $10 range. ODP stock could rise up to 44.5% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]

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