CHICAGO, March 31, 2011 /PRNewswire/ -- Zacks.com Analyst
Blog features: Office Depot Inc. (NYSE: ODP),
Staples Inc. (Nasdaq: SPLS), OfficeMax Inc. (NYSE:
OMX), American Express Co. (NYSE: AXP) and Ebay Inc.
(NYSE: EBAY).
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Here are highlights from Wednesday's Analyst Blog:
Office Depot to Launch PlayBook
Office Depot Inc. (NYSE: ODP) recently announced the
launch of the BlackBerry PlayBook tablet at its retail store
locations and its website, commencing from April 19, 2011. The leading supplier of office
products and services announced that the buyers can book the
PlayBook ahead of the launch through a pre-order beginning
March 29, 2011.
Touted as the world's first tablet for office goers, BlackBerry
PlayBook helps in easy execution of various diverse tasks
simultaneously with HD multimedia and advanced security features.
Further, it offers an ultimate enterprise support along with a
superior web browsing experience.
The move will better position the company in the developing and
immensely competitive environment and facilitate it in providing a
refined way to approach its customers.
Earlier, the company announced the launch of its new iPhone and
Android mobile applications to conduct business transactions on the
internet using a mobile phone.
The application launch was a part of its "Office Depot
Anywhere" strategy and will facilitate its clients to crack a
deal at their ease from an array of services on mobile and
m-commerce-equipped websites. Moreover, the company has also
empowered its website for the above purpose to attract consumers,
who do not use an iPhone or an Android.
Office Depot repositions itself to remain afloat in a difficult
consumer environment. The company is containing costs, closing
underperforming stores, reducing exposure to higher dollar-value
inventory items, shuttering non-critical distribution facilities
and focusing on providing innovative products and services, which
in turn, are expected to contribute to margin improvement.
Moreover, Office Depot is reviewing capital-efficient
opportunities to expand its reach in Eastern Europe and South America. The company believes that
India and China will provide significant growth
opportunities going forward. Further, Office Depot announced that
it would try to secure individual contracts and manage its costs to
alleviate the negative impact of its lost business.
We remain cautious about the sluggish job market. As the economy
continues to lag, consumers and small businesses remain frugal
about big-ticket spending on items such as business machines and
other durable products. Therefore, we believe that the demand for
office products is closely tied to the health of the economy.
Currently, we remain Neutral on the stock. Moreover, Office
Depot, which competes with Staples Inc. (Nasdaq: SPLS) and
OfficeMax Inc. (NYSE: OMX), holds a Zacks #3 Rank, which
translates into a short-term Hold recommendation.
AmEx to Serve with "Serve"
American Express Co. (NYSE: AXP) (AmEx) expanded its
digital payment services by introducing a new smart service known
as Serve, by which customers can transfer funds online and also
through their mobile phones. The service will be available to the
company's consumers in the US, while an international launch is
projected in 2012.
Serve is the outcome of AmEx's technology generated from its
$300 million acquisition of
Revolution Money last year. The latter is also an arch rival of
Ebay Inc. (NYSE: EBAY) PayPal person-to-person (P2P)
e-payment services.
Serve accounts facilitate online payments through mobile phones
and at the merchants who accept AmEx's cards. The accounts are
user-friendly and can be funded from a bank account, debit, credit
or charge card, or by receiving money from another Serve account.
These accounts can be accessed by Apple's iOS operating system and
Android applications, at Serve.com and also through Facebook, on
the mobile phones.
As an introductory offer, AmEx has chosen to waive the fee for
putting money into a Serve account using a credit card, for the
first six months. Henceforth, a fee of 2.9% of the transaction
amount and 30 cents per load will be
charged. However, no fee will be charged for adding cash to an
account or for debit and direct deposits and other
automated-clearing-house transactions.
Meanwhile, the first ATM cash withdrawal each month is free and
will cost $2 thereafter. Besides,
consumers will not have to pay any fee for making purchases at
brick-and-mortar stores using Serve.
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