Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Here’s Why Staples, Inc. (SPLS) is Surging

Staples, Inc. (NASDAQ:SPLS) shares have spiked more than 13% after the Wall Street Journal reported that the office supply chain is said to be in talks with various potential PE bidders over a potential sale. Although the Journal qualified its statement by saying that the talks might not necessarily lead to a deal, traders are bidding shares up in anticipation of the premium a takeover might command.

Staples, Inc. (NASDAQ:SPLS) previously tried to merge with Office Depot in a deal that would have unlocked substantial synergies. Due to their somewhat imposing market shares, however, the Department of Justice blocked the merger due to antitrust reasons. On the account of competition from Amazon.com and various other factors, Staples stock has relatively range-bound before today.

What Does The Smart Money Sentiment Say?

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 39.7% gains over the past 12 months and outperformed the 24.1% gain enjoyed by the S&P 500 ETFs. Our enhanced small-cap hedge fund strategy returned more than 45% over the last 12 months and outperformed SPY by more than 30 percentage points over the last 4.5 years (see details here).

According to our data, smart money sentiment in Staples improved in the fourth quarter. The number of elite funds with holdings in Staples, Inc. (NASDAQ:SPLS) rose by 4 quarter-over-quarter to 39 at the end of December while the amount held stayed relatively the same going to $637.4 million from $663.57 million. Steve Leonard‘s Pacifica Capital Investments raised its stake by 7% to 828,423 shares in the fourth quarter.

The Bottom Line

Traders are bidding up Staples, Inc. (NASDAQ:SPLS) on the back of a Wall Street Journal story that said the office supply chain is talking with various PE firms over a potential sale. For further office related reading, check out the article ‘10 Team Bonding Activities for Office‘.

Disclosure:None

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading...