Office Depot (ODP)

Company

"Office Depot, Inc. is a global supplier of office products and services. The company was incorporated in 1986 with the opening of our first retail store in Fort Lauderdale, Florida. In fiscal year 2008, we sold $14.5 billion of products and services to consumers and businesses of all sizes through our three business segments: North American Retail Division, North American Business Solutions Division and International Division. Sales are processed through multiple channels, consisting of office supply stores, a contract sales force, an outbound telephone account management sales force, internet sites, direct marketing catalogs and call centers, all supported by our network of crossdocks, warehouses and delivery operations." (company website)

odp(3-1)
ODP 4-month chart
odp(3-1)_1yr
ODP 1-year chart

Buy

Office Depot bottomed out in March then sky-rocketed for the next three months. Since June it has settled into a gentler rising channel. It has jumped a bit again in September, probably in anticipation of back-to-school sales.

At this moment, it's not clear how many shares I'll end up with — I placed my order yesterday but was out-bid all day long. At today's opening I picked up an odd lot just before the price took off again. We'll see...

It took two days, but I finally got a full lot of 500 shares.

  • Percentage price oscillator (PPO) — just slightly below the signal line as a result of the last two weeks consolidation
  • Volume — seems to be stabilizing at around 7M shares/day

Based on technical analysis, MarketEdge calls ODP a "buy" in a "weak upward trend."

Sell

gain Bottom line
17%

After solid advances last Friday, the Columbus Day market pretty much stalled, so I cashed out. ODP has had a very nice run up since I bought, but it is nearing the upper edge of the channel in which it has been trading, and I'm suspecting it's about to turn down again. I decided to err on the side of caution and bank a nice profit.