Bed, Bath and Nothing
Bed Bath & Beyond Inc. (BBBY) is a chain of retail stores that operates in the US and Canada. The Company sells a range of domestics merchandise and home furnishings including bed linens and related items, bath items, kitchen textiles, kitchen and tabletop items, fine tabletop, basic housewares and general home merchandise.
[PostStockWidget stock_valuation="" pricetype="live" manual_date="Dec. 21, 2012, 2:04pm GMT" symbolcodes="'BBBY'" symbolprices="65" div_align="right"]
On January 30, 2014, we identified a low valuation in BBBY at $64.75. Since that time, the shares have ranged between $55 and $67 and the forecast earnings have declined from original estimates for 2015 / 2016 earnings from $5.36 / $5.91 to $5.04 / 5.47.
We believe it is better to stand aside and look for better opportunities elsewhere.
EXIT BED BATH BEYOND AT $USD 65.86 (BBBY, $65.71) HALF POSITION
TOTAL RETURN (no dividends) +2.0%
PURPLE CHIPS TARGET: $69.00 POSITION SIZE: HALF (2.5) P/E: 13.7X DIV: N/A MKT CAP: $12.1B Cash: $800M RETURN ON CAPITAL: 45.4% EARNINGS YIELD: 12.8% 5 YR EPS Growth rate*:18.6% P/E/G Ratio: 0.74 EPS: $4.79 2015 EST.: $5.47 2016 EST.: $5.87
*Blended growth rate= 2/3 historical (5yrs), 1/3 forward.
