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Staples (SPLS) – Momentum Is Building

17 January 2014 by HCM

Since the beginning of the year, the feedback from trading during the holiday season has not been great among most US retailers. Best Buy (Best Buy Co., Inc.) shares had a torrid day yesterday plunging almost 30% after delivering uninspiring sales figures. The heat was also felt by SPLS (Staples, Inc.) whose stock fell roughly 4%. But the most impressive trend recently is the pace at which its CDS is currently widening. Since the 7th January 2014, the risk premium of SPLS has increased every single day, and its 5y CDS have traded all the way up from 153bps to 208bps at the close tonight. It looks as if some momentum is seriously building…