CIB Staples InvestorsReport

7/31/2019 CIB Staples InvestorsReport

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S TOCK TRADE R EPORT: S TAPLES (SPLS)

Risk

§ Low CAGR (Revenue).

§ Experience a huge drop in the past.§ Concentration risk in office products

and United States.

Line of Business

§ Leading office products company

§ Operate in 26 countries

§ North American Delivery, Retail andInternational Operations.

§ Revenue Breakdown: Office supplies(49%), Business machines (31%),Computers (15%), Furniture (5%)

Reward

§ P/E Analysis, way undervalued in

comparison to S&P.§ 2.6 Dividend Yield

§ Low growth rate in terms of revenuebut constant.

Last Price 52-Week Range Half Year Beta$16.42 11.94 - 21.50 1.1

% Below 52-Week High P/E Ratio PEG Ratio

23.6% 11.71 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 andincome.

Investment Strategies and Action Plan

§ Bought 200 shares at $16.42 onMarch 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 losso 0.77/16.42 = 4.69%

§ Profit Areao 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 spreadprofit.



Research Analysts Contact Information:

Stanley Ho

Email: [email protected] Phone: +15109288283

Head of Investors’ Relationship ContactInformation:

Amelia WongEmail: [email protected] Phone: +1415866303

Editor Contact Information:

Tricia Seow

Email: [email protected] Phone: +15106105345

Please contact any research analyst regarding any information about the stock.

For general investment inquiry, please contact Investment Relation Officer.

Disclaimer:

The trade report has been produced by Capital Investments at Berkeley; it has not been reviewed by Securities and Exchange

Commission. The information provided in the trade report is informational only. There can be no assurance that the stocks mentionedin the trade report will achieve profits or avoid incurring substantial losses. There is a high degree of risk inherent in derivatives andthey may not be suitable for all eligible investors. It is possible that an investor may lose some or all of its investment. Before making

an investment decision, an investor and/or its adviser should (i) consider the suitability of alternative investments with respect to its

investment objectives and personal situation and (ii) consider factors such as its personal net worth, income, age, risk tolerance, andliquidity needs. Short-term investors and investors who cannot bear the loss of some or all of their investment or the risks associated

with the limited liquidity of an investment should not invest.

Investments involve risks. The value of parts of the Fund may decrease in unfavorable market conditions. Capital Investments at

Berkeley and officers of the Fund decline all liability in the event of any loss in relation to the information shown on the prospectus, or to the risks involved with financial markets.

Regarding possible risks about subscribing to the Fund, the investor should refer to the Prospectus that can be obtained from officersat Capital Investments at Berkeley. No investment should be made in any funds of Capital Investments at Berkeley until the

prospectus has been studied carefully.

There can be other risks related to the investment you made in the Fund which is not mentioned in the prospectus. Capital

Investments at Berkeley do not account responsibility for those losses due to these risks.

Documents

CIB Staples InvestorsReport