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

Buy

Office Depot took a big tumble in the days before earnings were announced, falling below its upward trading channel. Despite a nasty earnings surprise before the market opened, the price climbed all day, ending at the day's high. Hmmmm, said I to myself, the Market must know something I don't know.

  • Percentage price oscillator (PPO) — well below the signal line, but the gap closed on earnings day
  • Volume —higher than normal volume on earnings day, higher volumes leading up to it.

Sell

gain Bottom line
5%

Office Depot has been recovering nicely from the slamming it took after earnings were announced and jumped yesterday after a "deliberation day." Today, however, the price went south in a sour market, and my stop-loss order kicked in to close me out of the position with a small profit.