Chart Of Office Depot And Office Max Illustrates The Death Of Lending And Of Capitalism
Wednesday, 29. October 2008, 19:56:05
Office Depot Share Price Plummets On Asset Backed Paper Exposure And Fears Of Economic Slowdown
Office Depot has sold off recently as fears grow that the firm will see a downturn, as it gets a hefty percentage of its North American business from small customers, who are facing pressure from inflation, frozen credit markets and the nation's economic slowdown.
And it does not get commercial paper from the Federal Reserve, rather it gets funding via a new $1.25 billion asset-based credit facility, which in general as a group, have been imploding in value. The facility, as reported by Wallace Witkowski of Marketwatch is secured by the company's inventory, accounts receivable, cash and depository accounts, has replaced its current $1 billion revolving credit.
The Resourceful Bear News Service now places Office Depot, ODP, and Office Max, OMX, on Death Watch; it may take a year or two, but these companies are now goners: These two now stand as tombstones to the former age of prosperity.
The ongoing Yahoo Finance chart of ODP and OMX shows that when bank lending died on September 11, 2008, these two legends of American retailing died ... Chart shows the failure of lending and the death of Office Depot and Office Max.
Office Depot has sold off recently as fears grow that the firm will see a downturn, as it gets a hefty percentage of its North American business from small customers, who are facing pressure from inflation, frozen credit markets and the nation's economic slowdown.
And it does not get commercial paper from the Federal Reserve, rather it gets funding via a new $1.25 billion asset-based credit facility, which in general as a group, have been imploding in value. The facility, as reported by Wallace Witkowski of Marketwatch is secured by the company's inventory, accounts receivable, cash and depository accounts, has replaced its current $1 billion revolving credit.
The Resourceful Bear News Service now places Office Depot, ODP, and Office Max, OMX, on Death Watch; it may take a year or two, but these companies are now goners: These two now stand as tombstones to the former age of prosperity.
The ongoing Yahoo Finance chart of ODP and OMX shows that when bank lending died on September 11, 2008, these two legends of American retailing died ... Chart shows the failure of lending and the death of Office Depot and Office Max.
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