Aegerion Pharmaceuticals, Inc. (AEGR), Mosaic Co (MOS), Staples, Inc. (SPLS): 3 Stocks to Get on Your Watchlist

Over the long run the need for food and higher crop yield is only increasing which makes fertilizer companies like Mosaic Co (NYSE:MOS) a smart play.

Staples, Inc. (NASDAQ:SPLS)
Despite its ascent to a new 52-week high, Staples could have quite a few tricks up its sleeves in the surprise department for short-sellers if they aren’t careful.

In recent weeks Staples, Inc. (NASDAQ:SPLS) has been creeping up the list of the S&P 500‘s most short-sold companies. To some extent I can understand short-sellers’ view of the company given its low single-digit growth rates, and the need to close some of its stores in order to reduce expenses. However, there are considerable reasons to believe that Staples could send short-sellers running for the hills over the coming year.

As I’ve noted previously, the upcoming merger between OfficeMax Inc (NYSE:OMX) and Office Depot Inc (NYSE:ODP) will create a window of probably two years where the combined company will be closing stores and laying off workers in order to cut expenses. That should be a rapid growth period for Staples, Inc. (NASDAQ:SPLS) as it picks up displaced former customers of both chains and proves itself to be the most stable office supply store in the eyes of consumers.

The other factor at play here is that Staples, Inc. (NASDAQ:SPLS) is focused on taking on Amazon.com, Inc. (NASDAQ:AMZN) head-to-head in the direct-to-consumer office supply sector. Right now Amazon has a pretty steady lead on Staples in this department, but it also has numerous other growth avenues it’s focused on. Staples has pretty much laid its intentions out to go after small businesses and consumers via the web-based sales. Improving direct-to-consumer sales could lead to hefty profits for Staples and marks yet another reason why you should be closely watching this turnaround.

The article 3 Stocks to Get on Your Watchlist originally appeared on Fool.com and is written by Sean Williams.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool owns shares of, and recommends, Amazon.com. It also owns shares of Staples.

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