Cramer Loves Staples (SPLS)
On last night's MAD MONEY Cramer said, "The market is giving you a freebie, so buy buy buy." He said the stock that is a freebie right now is Staples (SPLS). He said that if the market was rational it wouldn't be anywhere near this low. It is Best of Breed in a strong sector,and compare it to Office Depot (ODP) today. He says SPLS actually breaks his rule of paying a premium because SPLS trades at a discount to its peers. He thinks this is a gift certificate.
Cramer said that if you just used forward numbers it would look dirt cheap. The reason it doesn't make sense is because the market is giving it a discount because it is the biggest of the office supply group and they worry about expansion opportunities. Cramer said they are still growing and there are 12 major markets that they still have no presence in. He said management is well seasoned, and he said he thinks this is a market anomoly right now. He said the Best of Breed deserves a premium rather than a discount to its Peers.
SPLS tradeded down 1.5% at $26.47 in regular trading, but traded up over 3% to $27.30 after Cramer touted it.
Jon C. Ogg
Cramer said that if you just used forward numbers it would look dirt cheap. The reason it doesn't make sense is because the market is giving it a discount because it is the biggest of the office supply group and they worry about expansion opportunities. Cramer said they are still growing and there are 12 major markets that they still have no presence in. He said management is well seasoned, and he said he thinks this is a market anomoly right now. He said the Best of Breed deserves a premium rather than a discount to its Peers.
SPLS tradeded down 1.5% at $26.47 in regular trading, but traded up over 3% to $27.30 after Cramer touted it.
Jon C. Ogg
posted by douglas mcintyre at 3:39 AM
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