Staples, Inc. (SPLS) Gets Slammed By FTC

The FTC will try to block Staples, Inc.'s (NASDAQ:SPLS) merger with Office Depot Inc (NASDAQ:ODP)

Dec 7, 2015 at 3:07 PM
facebook X logo linkedin


Staples, Inc. (NASDAQ:SPLS) is getting whacked today, after the Federal Trade Commission (FTC) said it would try to stop the company's planned merger with Office Depot Inc (NASDAQ:ODP), claiming the two retailers are essentially the only major office supply chains in the U.S. Now, SPLS is down 11.1% at $10.99, after earlier hitting a three-year low of $10.68, and earning a spot on the short-sale restricted list. 

SPLS has been trending lower for some time now. Due in part to pressure from their 60- and 80-day moving averages, the shares have trailed the broader S&P 500 Index (SPX) by more than 16 percentage points during the past three months. 

It's not surprising, then, to see that short interest is elevated on SPLS. It would take roughly a week for bears to buy back the 31.5 million shares that are sold short, going by average daily volumes. However, it appears some short sellers may wish they'd have stuck it out a bit longer. Specifically, short interest declined by 7.1% over the past two reporting periods. 

On the other hand, option traders may be hurting from today's decline. SPLS' Schaeffer's put/call open interest ratio (SOIR) stands at just 0.17, meaning call open interest outweighs put open interest by a factor of five, when looking at contracts that expire within the next three months. What's more, this reading is only 4 percentage points from an annual low, indicating short-term speculators are much more call-skewed than normal. 

Looking elsewhere, analysts are perfectly split on Staples, Inc. (NASDAQ:SPLS). Six covering brokerage firms say the shares are a "strong buy," while the other six deem them just a "hold." On that note, just moments ago, BB&T downgraded its opinion of the stock to "hold" from "buy."
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI