Bed Bath and Beyond (Symbol: BBBY) BBBY is irrelevant. You can go to WMT or TGT and get the same stuff for better price and sometimes better quality. Watch and learn as BBBY becomes at $10 stock soon .. they expanded too fast to areas that don't need them. They will feel the effects of our recent no spending more than you can possibly imagine .... BBBY is screwed! BBBY is the worst value in its history on trailing data alone. Their growth has evaporated and risks to their business model and niche are increasing almost daily. I can go into financial specifics of their hidden leverage and fragile margin profile, industry insider anecdotes all day, but the point here is that the stock has simply not adjusted to their risks, trendline, consumer behaviour and conditions within (stock/retail cre/credit/auction rate securities) markets that ultimately affect them greatly. Thats why the short side opportunity is particularly attractive here. They were able to carefully/aggressively manage the damage within the latest numbers until you read between the lines... Its amazing how the stock has been trading in a bubble. There is no news on this stock which I think is a bad sign. They have nothing good to report and they are hoping this bail out bill will bail them out also. Well this is a bail out of the banking systems .. and its not going to make american's feel much better ... For at least for now .. we have entered into a new sense of careful spending by the general public. Stores like BBBY do not fit this new world ... Target now carries a luxury line of linens as well which was BBBY biggest profit margin product.
$25.53 (01/07/09)
