Staples Feeds the Bears

Photograph by James Leynse/Corbis

Staples gave short sellers the bad news they were hoping to hear this morning, reporting weak first-quarter results and weaker guidance about future performance as the office supply chain struggles with a turnaround plan. This delighted the short sellers, who borrow shares, sell them, and look for a price decline so they can buy them back at a lower price and pocket the difference.

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