STOCK TRADE REPORT: STAPLES (SPLS)

Line of Business Leading office products company Operate in 26 countries North American Delivery, Retail and International Operations. Revenue Breakdown: Office supplies (49%), Business machines (31%), Computers (15%), Furniture (5%) Risk Low CAGR (Revenue). Experience a huge drop in the past. Concentration risk in office products and United States. Reward P/E Analysis, way undervalued in comparison to S&P. 2.6 Dividend Yield Low growth rate in terms of revenue but constant.

Last Price $16.42 % Below 52-Week High 23.6%

52-Week Range 11.94 - 21.50 P/E Ratio 11.71

Half Year Beta 1.1 PEG Ratio 1.12

Reasons to Buy Undervalued using P/E analysis. Bouncing from 52-week low range. Dividend with covered put (safety bet) low downside risk with good earning potential. Strong and stable cash flow and income. Investment Strategies and Action Plan Bought 200 shares at $16.42 on March 16th 2012 Holding period: 6 months (hopefully less) Target price: $19

Buy 16 Put Sell 14 Put April Expiration - Bear Put Spread (2 contracts). Maximum loss o 0.77/16.42 = 4.69% Profit Area o Price of Stocks to go up to: 16.77 by 2.2% (Case 1) o Price of Stocks to drop below 15.65 and unwind stock positions within 2 months. (Case 2)

In the case of incorrect prediction If stock drops below 16, loss is very minimal. In addition, we can even unwind our stock positions and let bear put spread profit.


Research Analysts Contact Information: Stanley Ho Email: stanleyho@berkeley.edu Phone: +15109288283 Head of Investors Relationship Contact Information: Amelia Wong Email: awong926@gmail.com Phone: +1415866303 Editor Contact Information: Tricia Seow Email: triciaseow@berkeley.edu Phone: +15106105345

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