Q. I am so disappointed with my shares of OfficeMax Inc. Is there any hope for the future?A. This office-supplies retailer that ranks third behind Staples Inc and Office Depot Inc has been reducing expenses while expanding its product assortment and sales channels. Most recently it has:Begun selling Amazon’s Kindle and Barnes & Noble’s NOOK reading devices, and added online sales of Lenovo computers.Formed partnerships with grocers Safeway and Food Lion, and made an alliance with the office supplier Lyreco to expand its global reach.In a weak economy, high unemployment and fuel costs have negatively affected sales to businesses and individuals. Customers are price shopping, whether for their companies or for school supplies. That ignites competition from discounters such as Wal-Mart, Costco and Amazon.OfficeMax (OMX) shares are down 69 percent this year following last year’s 39 percent gain. The question for investors is whether the depressed stock price makes it worth overlooking some of the company’s problems. It lost $3 million in the second quarter on charges for store closures and severance, plus somewhat lower sales. Results were actually better than expected and an improvement over the first quarter, raising the possibility the battered office-supplies industry may be stabilising.Consensus analyst rating on OfficeMax shares is between “buy” and “hold,” according to Thomson Reuters, consisting of three “strong buys”, six “buys”, six “holds” and one “underperform”.In downgrading the shares from “buy” to “neutral”, a Goldman Sachs report characterised OfficeMax as a “challenged firm, in a challenged sector, with few catalysts and an operating leverage profile that could work against it in a downturn”.Due to saturation of the office-supplies market, the idea of an Office Depot/OfficeMax merger is occasionally raised in investment circles or in the media, sometimes temporarily affecting stock price.OfficeMax conducts both contract and retail business as it sells products and services through nearly 1,000 stores, direct sales, catalogs and e-commerce. Many customers are large corporations, which means potential for increased sales to small and mid-sized businesses. It has also added ImPress print centres and remote PC technical support services.Ravi Saligram, former international and chief globalisation officer for Aramark, became OfficeMax President and CEO in November of last year. The company has the financial wherewithal to service debt and meet lease commitments.OfficeMax earnings are expected to decline 28 percent this year and rise 22 percent next year, according to Thomson Reuters. The five-year annualised forecast is 10 percent compared to 11 percent expected for the speciality retail industry.Q. I would appreciate your opinion on shares of JPMorgan Small Cap Equity Fund, which has been recommended.A. Despite its name, this low-turnover fund doesn’t own only small caps. Around 40 percent of its holdings are in mid-size stocks.The $2.4 billion JPMorgan Small Cap Equity Fund “A” (VSEAX) is up 20 percent over the past 12 months to rank in the lowest one-third of the small growth fund category. The three-year annualised return of six percent places it in the top one-fifth of its peers.“This fund is not a core holding but can play a supporting role to balance out a heavy stake in large caps,” said David Falkof, mutual fund analyst with Morningstar Inc. in Chicago.“The turnover is usually under 50 percent every year, versus 100 percent for most small-cap funds.”Glenn Gawronski, who uses a disciplined strategy to find value stocks, became manager of the fund in 2004. Don San Jose joined him as co-manager in 2007. According to filings, Gawronski has $500,000 to $1 million of his own money in the fund, while San Jose has between $100,000 and $500,000 in it.JPMorgan Small Cap Equity is supported by three specific analysts and the firm’s small-cap team. They look for discounted stocks with competitive advantages, strong management teams and sustainable free cash-flow growth.Sector weightings are kept within five percentage points of the Russell 2000 Index.“The small management team is a long-term holder of the businesses it buys and does a good job of understanding the core drivers of growth in those businesses,” said Falkof, noting that the same team opened JP Morgan Mid Cap Core Fund “A” (JMRAX) last year.Twenty-one percent of assets of JPMorgan Small Cap Equity are in financial services, with other concentrations in consumer services, consumer goods and industrial materials. Top stocks were recently Silgan Holdings Inc, Coventry Health Care Inc, Jarden Corp, Proassurance Corp, Waste Connections Inc, Penn National Gaming Inc, TransDigm Group Inc, Papa John’s International Inc and AptarGroup Inc.This 5.25 percent “load” (sales charge) fund requires a $1,000 minimum initial investment and has an annual expense ratio of 1.29 percent.Q. How much does a financial planner cost, and what should I ask at first meeting?A. While it can vary, $150 to $300 per hour is a usual range. Hourly services are usually chosen for one-topic counselling when you can implement the advice yourself.Planners are either “fee-only,” in which the planner is compensated on an hourly or project basis or for percentage of assets under management; “commission-only”, in which compensation comes from purchase of financial products; a combination of fee and commission; or by a salary from a financial services firm.“Ask about the planner’s credentials, qualifications and typical client profile,” said Mari Adam, certified financial planner (CFP) with Adam Financial Associates Inc, Boca Raton, Flordia. “Select a planner with experience addressing issues and challenges you face, and with whom you have good rapport.”Professional designations that require education, examinations and experience include CFP; certified public accountant-personal financial specialist; and chartered financial consultant.A financial planner’s history can be checked out at cfp.net. In addition, a financial planning firm managing less than $25 million falls under state authority and above that level must be registered with the Securities and Exchange Commission.Andrew Leckey answers questions only through the column. Address inquiries to Andrew Leckey, 555 N. Central Ave., Suite 302, Phoenix, Ariz. 85004-1248, or by e-mail at andrew@invaol.com