The Grimm Reaper

Office Depot: Another Retail Sector Tragedy?

The Lastest News From The Grimm Reaper:
OFFICE DEPOT
Dateline: Florida
Office Depot stock has fallen over 8% today, just before noon EST.
Analysis indicates that there will now be significant degrading of the companies value in the next 90 days.
OFFICE DEPOT needs to make bold moves to re-assure the investment community, such moves would include the sacking of CEO Steve Odland as well as BSD President Steve Schmidt; closing of all non-producing stores; hiring an out side accounting group to work with FLORIDA investigators to resolve the questions surrounding their government contracts; and refunding unilatterally, signiicant dollars to the numerous GOVERNMENT accounts that have been overcharged. Unless OFFICE DEPOT, take these types of bold steps, the investigations, in FLORIDA and CALIFORNIA, could result in irreparable damage to the OFFICE DEPOT brand name. Over all out look for 2008 is not good, even with bold action.

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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.

Office Depot: Another Retail Sector Tragedy?

OFFICE DEPOT,stuck with horrible upper level management and leadership, is destined to be the bigest corporate stock failure of 2008.
My updated end of year range will be between $2.80 and $3.40 per share. This will end Office Depot's existence as we know it today, as it will certainly be consumed by a venture group, so long as the contigent liabilities, resulting from the many ongoing investigations of its BSD government business, does not completely devastate the financials. This will be the WORST STOCK OF 2008

Office Depot: Another Retail Sector Tragedy?

Office Depot is not in trouble jus because of the massive failure of is retail division. What most analysts fail to understand in that 52%of Ofice Depot's revenue comes from the Business Solutions Division (BSD), the contract/delivery arm of OFFICE DEPOT.
Of total BSD sales, $1.4 billion is in the public sector, or contract government sector. Currenly, scathing audit reports by the states of GEORGIA, NEBRASKA NORTH CAROLINA AND CONNETICUT, have caused widespread concern throughout OFFICE DEPOT'S entire base of government business. In April of 2008, an ex-senior account manager for BSD, came forward with allegations to STATE & FEDERAL authorities that OFFICE DEPOT, was engaged in a wide ranging scheme to violate certain large government contracts and agreements with systematic overcharging. The ATTORNEY GENERAL OF FLORIDA, after being presented with a detailed presenaion of the allegations opened a full blown FRAUD INVESTIGATION of OFFICE DEPOT. The highly specialized, ECONOMIC CRIMES DIVISION, of the Florida Attorney General's Office, is well into their second month the investigation. Additionally, federal agencies have launched their own inquiries. The lucrative US Communities/Los Angeles County/Office Depot, national contract for school and office supplies is at serious risk, as the investigation claims over $70 million dollars per year in overcharges on this $700 million dollar a year (annual) agreement used in all 50 states by state and local government agencies. OFFICE DEPOT has failed to disclose the contigent liabilities associated with these investigations in their financial statements as required, as such, the Securities and Exchange Commission is now conducting a preliminary inquiry. Office Depot should see a serious degrading of all their core government business in the second half of 2008, with civil and criminal action on the horizon concerning their government sector of business. STOCKHOLDERScanalso be expected to launch a class action lawsuite as details of the investigations become more public.