This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Today's Analysis On Office Depot And OfficeMax: Improving Labor Market A Boon

LONDON, January 22, 2013 /PRNewswire/ --

Back in September 2012, Federal Reserve Chairman Ben Bernanke announced an aggressive bond buying program to boost economic growth. Under QE3, as the bond buying program is called, the Fed pledged to buy mortgage backed securities worth $40 billion every month until there is a sustained recovery in the labor market.

Since the Fed announced QE3, the labor market has shown signs of improvement albeit at a very slow pace. The unemployment rate has dipped below 8%. On Thursday, a report from the Labor Department showed that initial jobless claims fell to a five-year low last week.

OfficeMax and Office Depot Turned in Profits

All these augur well for office supply companies OfficeMax Incorporated (NYSE: OMX) and Office Depot Inc. (NYSE: ODP). Reports on these companies have been posted for free at    

Both OfficeMax and Office Depot turned in a profit in their most recently reported quarterly results. However, the profit was generated mainly due to cost-cutting measures. Both companies also posted a drop in sales in the quarter. StockCall technical report on OfficeMax is available now for download. Sign up at

Although the labor market has shown signs of improvement, office supply companies are still operating in a tough environment. Some analysts believe that the best course of action for the two companies would be to merge. Back in November last year, Caris & Co. said that combining the two companies is the most logical way to spur profit growth and cut costs via store closures. However, the two companies have not shown any interest in a possible merger. Instead they are focusing on streamlining their operations.

Streamlining Operations

OfficeMax and Office Depot have been closing stores or reducing square footage in order to reduce costs. The companies have also been expanding their online sales.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%
TSLA $162.60 0.00%
YHOO $27.97 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs