CDM Capital
Long/short equity, value, deep value, contrarian

Staples: Industry Consolidation Leading To 50% Upside

"In Silicon Valley, it seems that business plans - a narrative of how one intends to make money - are once again far more valuable than many actual businesses engaged in real world commerce and whose revenues exceed expenses." - Seth Klarman

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Staples: A Compelling Risk/Reward Ignored By The Street With 50% Upside

We are currently focused on businesses that actually make money, thereby having the ability and wherewithal to return capital to shareholders. We continue to see an interesting disconnect taking place between frothy technology businesses (mainly IPOs) and real world profit-generating businesses. That being said, we think Staples (NASDAQ:SPLS) is deceptively cheap on multiple fronts, and its hidden gem (e-commerce business) is ignored...

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