In the spirit of corny titles, I thought I’d give it a shot. It is actually a play on Office Max, whose stock fell 19% yesterday. Here is the Wall Street Journal’s explanation for a 19-freakin-percent drop.
“Dropped as much as 19% Thursday after the office-supply chain reported a sharp drop in its domestic contract business, weakness at its domestic retail stores and shrinking margins that caused it to handily miss analysts’ earnings views.”
What they should have said is something like the following: “Traders today reacted to the emotion of Office Max missing analysts’ forecasts for revenue and profit. Analysts, however, are often wrong, and not only wrong, but mostly wrong in a predictable fashion, so the standard by which they are judging the stock was a bit silly to begin with. The news today is actually not extremely important, but was treated as such by many in the market. This drop signals that, for now, Office Max is no longer a fashionable stock to own, until it is again. A bunch of investment bank employees feared being the last one to exit, and the door became jammed with too many oversized egos trying to escape all at once.”
And yes, I own Office Max, and played a poor round of golf yesterday. Probably contributed to this blog post. But only a little.