The Grimm Reaper

It's Not Easy Being Evergreen - Cramer's Lightning Round (7/9/08)

OFFICE DEPOT:
New end of year projections: Projected close at $3.80per share for year end 2008.
OFFICE DEPOT HEADLINES:
Crisis in the Business Solutions Division (BSD)
Office Depot's contract delivery division resposible for 52% of ODs annual revenue is in dire straights. The crisis with BSDin more severe and significant then the declining sales and ROI from the retail division. Currently BSD does about $1.4 billion a year in government contract sales, mostly to state and local government agencies. The largest single OFFICE DEPOT contact is the US Communities/Los Angeles County/Office Depot contract for officeand school supplies, which is valued at $700 million annually.
In April an ex-senior account manager with Office Depot BSD came forward as a whistleblower, with allegations that Office Depot was engaged in systematic schemes to overcharge and defaud government accounts to amounts in excess of $70 million per year. The states of NEBRASKA, GEORIA, NORTH CAROLINA AND CONN. issued scathing audit reports with NEBRASKA AND GEORGIA cancelling the contract with Office Depot. After the whistleblowers presentation to the ATTORNEY GENERAL of the STATE OF FLORIDA, the Attorney General ordered his elite Economc Crimes Division to immediately open a wide ranging FRAUD investigation of OFFICE DEPOT and its government contracts.

Presently the investigation in ongoing, as other audits and investigations are popping up across the country concerning Office Depot's contract businss with government agencies.

OFFICE DEPOT i required by law to report and dsclose these significant cotigent labilities in their financial statements. By not disclosing how these events can material effect the value of the company, is injurious to the stockholders and investors. THE SECURITIES AND EXCHANGE COMMISSION, should soon be investigating the lack of disclsure by Office Depot.

THIS WILL BE THE WORST PERFORMING STOCK OF 2008, AND WILL HAVE A HIGH PROBABILITY OF BEING CONSUMED BY A VENTURE GROUP AS THE STOCK CONTINUES TO DECLINE AND INVESIGATIONS MOUNT.