Comments on: Lots of excuses at Office Depot… http://www.footnoted.org/buried-treasure/lots-of-excuses-at-office-depot/ Michelle Leder's guide to what's hiding in SEC filings Sun, 12 Oct 2008 02:38:14 +0000 http://wordpress.org/?v=2.6.2 By: Paul http://www.footnoted.org/buried-treasure/lots-of-excuses-at-office-depot/#comment-4670 Paul Thu, 28 Feb 2008 13:19:21 +0000 http://www.footnoted.org/buried-treasure/lots-of-excuses-at-office-depot/#comment-4670 A very interesting story. A couple of matters some may want to note. All three companies, ODP, AN and RSTO: (1) Have a record of restatements or SEC investigations into accounting practices (not necessarily under her tenures), (2) Were audited by Deloitte & Touche companies usually concurrent with Ms. McKay's tenures, (3) Lost meaningful sums of equity market value during her CFO and financial reigns (which of course may not be a result of Ms. McKay's efforts). Aug 2005—Feb 2008 While ODP CFO shares down ~55% vs SP500 up ~10% Oct 2003—Sep 2005 While RSTO CFO shares down ~10% vs SP500 up ~20% Jan 1997—Mar 2003 While AN CFO and SVP-Finance shares down ~65% vs SP500 up ~11% It's always interesting to follow executives wherever they hop to see the trail they leave. A very interesting story. A couple of matters some may want to note. All three companies, ODP, AN and RSTO:

(1) Have a record of restatements or SEC investigations into accounting practices (not necessarily under her tenures),
(2) Were audited by Deloitte & Touche companies usually concurrent with Ms. McKay’s tenures,
(3) Lost meaningful sums of equity market value during her CFO and financial reigns (which of course may not be a result of Ms. McKay’s efforts).

Aug 2005—Feb 2008 While ODP CFO shares down ~55% vs SP500 up ~10%
Oct 2003—Sep 2005 While RSTO CFO shares down ~10% vs SP500 up ~20%
Jan 1997—Mar 2003 While AN CFO and SVP-Finance shares down ~65% vs SP500 up ~11%

It’s always interesting to follow executives wherever they hop to see the trail they leave.

]]> By: Richard Jacovitz http://www.footnoted.org/buried-treasure/lots-of-excuses-at-office-depot/#comment-4668 Richard Jacovitz Wed, 27 Feb 2008 20:17:45 +0000 http://www.footnoted.org/buried-treasure/lots-of-excuses-at-office-depot/#comment-4668 Michelle, You have done it again. Great work! I wrote a short piece in my blog referring to this piece. Keep it up. Best, Richard Michelle,

You have done it again. Great work! I wrote a short piece in my blog referring to this piece. Keep it up.

Best,
Richard

]]> By: David Connor http://www.footnoted.org/buried-treasure/lots-of-excuses-at-office-depot/#comment-4667 David Connor Wed, 27 Feb 2008 17:59:22 +0000 http://www.footnoted.org/buried-treasure/lots-of-excuses-at-office-depot/#comment-4667 Great story! Keep them coming! Great story! Keep them coming!

]]> By: Thomas http://www.footnoted.org/buried-treasure/lots-of-excuses-at-office-depot/#comment-4666 Thomas Wed, 27 Feb 2008 17:40:00 +0000 http://www.footnoted.org/buried-treasure/lots-of-excuses-at-office-depot/#comment-4666 You do have to also note the fact Office Depot does have about double the beta compared to its competitors, plus the company has far more leverage, which was a big deal during the 3rd quarter report dealing with capital management. Which you can't blame since everything the company does is based off sales. The company does seem to be taking some measures to help reduce leverage lately, which it might be a poor time to do it if the market starts to recover. So they will logically get slammed a lot harder than the other stores will. It's not necessarily a bad thing during a period of high growth, but right now it's killing the company's stock price. I have a feeling that when the economy starts to recover Office Depot will be a logical pick, but for now you have to wait until the whole suprime mess is over, plus I would highly not recommend buying before about March 3-4 when Odland's contract expires. Generally with office supply it's more about measuring the economy than the company's individual performance. You do have to also note the fact Office Depot does have about double the beta compared to its competitors, plus the company has far more leverage, which was a big deal during the 3rd quarter report dealing with capital management. Which you can’t blame since everything the company does is based off sales.

The company does seem to be taking some measures to help reduce leverage lately, which it might be a poor time to do it if the market starts to recover.

So they will logically get slammed a lot harder than the other stores will. It’s not necessarily a bad thing during a period of high growth, but right now it’s killing the company’s stock price. I have a feeling that when the economy starts to recover Office Depot will be a logical pick, but for now you have to wait until the whole suprime mess is over, plus I would highly not recommend buying before about March 3-4 when Odland’s contract expires.

Generally with office supply it’s more about measuring the economy than the company’s individual performance.

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