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Staples Might See Strong Action in Year End

David Becker
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The end of the trading year could bring on a rally for Staples (NASDAQ:SPLS) , which are generally seen as safe bets for investors. KMB, rebounded Friday, after the better than expected payroll report.

KMB’s board of directors announced that they have given permission to management to pursue the spin-off of K-C Health Care, a health care business owned by the company. K-C Health Car provides surgical and infection health care products. The company expected to finalize the spin-off by the end of the third quarter.

The 52-week range for the stock price is $ 82.71 – $111.68. Earnings increased 7% quarter over quarter and the 3-year earnings growth rate is up 8%. Sales were flat quarter over quarter and the 3-year sales growth rate is up 3%. The company has a profit margin of 13.5% and a very substantial 3% dividend yield. The company has a debt to equity ratio of 109% and has a price to earnings ratio of 19.

Recent insider purchases of KMB are a positive sign for future price action. Mark Buthman an officer of the company purchased 17,590 shares on November 27, 2013 for a total value of 1.14 million. On November 18, 2013 Thomas Falk an officer and director purchased approximately 235,000 shares in four separate transactions.

The technical picture for KMB is stable. Price action seems to be hovering near a top and could decline slightly before it refreshes. The RSI has turned lower with price action and is printing near 52, which reflects consolidation. The Bollinger band width which measures historical volatility is at its lowest levels in the past 12-months.

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