http://247wallst.com/retail/2014/10/21/why-data-breach-at-staples-may-not-matter/
By Paul Ausick
247wallst.com
October 21, 2014
Office supply store Staples Inc. (NASDAQ: SPLS) confirmed on Monday that
it is investigating a breach of payment card data at some of its locations
in the northeast United States. The company has said little else except
that it takes protecting customer data “very seriously” and reminds
customers that they are not responsible for any fraud on their credit
cards if the fraudulent activity is reported quickly.
The news had at most a minor impact on Staples’s stock Tuesday. Shares
opened about down about 1.3% but clawed back to around flat for the day in
afternoon trading. That’s not always the case when a retailer reports a
data breach, but there are a couple of mitigating circumstances here.
First, the company’s stock was upgraded early in September from Neutral to
Outperform at Credit Suisse based on a possible merger between Staples and
Office Depot Inc. (NYSE: ODP). We had our doubts about such a merger at
the time, and Staples’s stock price has actually dropped back from a high
around $12.75 at the time the upgrade was made to around $12.30 today.
Also, Staples has not provided any detail on the number of records that
were breached, but the thefts appear to have been limited to a relatively
few of the company’s more than 1,500 U.S. stores. According to the Krebs
on Security blog, at least seven stores in Pennsylvania, three in New York
City and one in New Jersey were affected.
[...]
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