Wednesday, August 02, 2006

CXP crashes and burns ...

Why did Corporate Express drop so much today ?

Well I would suspect two things ... their slight profit growth was not enough ( only being about 2% ) and their insistance that they will improve earnings next half year. Not to mention that they are targeting acquisitions which is not a strength of Corporate Express. First they need to get their own business in check and profitable.

They really need to find answers now from within the company rather than going out and buying more companies. Earnins forcasts for the company were too high but they were still realistic.

Is CXP worth a buy now at this declined price .. the answer is maybe. I was going to analyse CXP later this year (its in my list of many shares to analyse) but it might be worth doing a bit earlier.

I will try and look into it in the next few days to see if there is a buying opportunity or whether there is just too much risk vs the reward.

My inital figures show CXP only to be a good buy around $4.00. As the stock price is higher than this still it is worthy of watching but not jumping into headfirst without further analysis.

Keep an eye on the blog for the report ...

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