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Staples, Inc. (NASDAQ:SPLS)

CAPS Game Rating: 3 out of 5

An office products company which through its subsidiaries, operate three business segments: North American Retail, North American Delivery, and International Operations.

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Member Avatar blesto (31.71) Submitted: 17/06/2012 09:26:28 : Outperform Start Price: $12.18 SPLS Score: -5.85

http://wiki.fool.com/The_Graham_Number
Formula: Fair value=Sqrt(22.5*EPS*BV) I expanded it a little by also using EPS Normalized and Tangible BV
My current Graham Number Valuation Range for SPLS: $10.88 to $17.99
Figures derived from current Scottrade research data. This is all to get a relative value.
Even though the low range is below the current price, the potential upside of 41% is tempting me.
I also like the current annual dividend yield of 3.47%
It's sustainable with a low payout ratio of 28.9%
During the "Great Recession" they went from an annual payout to a quarterly payout and have raised the divi 4 times since.
A low P/E of 9.1x and P/E Normalized of 9.3x also influenced my choice.

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Member Avatar blesto (31.71) Submitted: 28/01/2013 17:57:03
Recs: 0

Updated GNVR: $2.49 to $10.92

Wow! Back in 6/17/2012 the PE was 9.1x. Today the current PE is 518.0x!!!
The Normalized PE is now 9.5x still well below 20x which is what I look for.
Also back then the payout ratio was 28.9% as opposed to what it is today at 881.1%!!!
I'm gonna keep it open for now, but when it hits the green (The rising tide lifts all boats) I think I'll quickly close it out in CAPS.

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