201–210 of 336 posts
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My favorite of the moment is 'gluten free'. Seen on things that physically cannot have gluten in them, unless it's contaminated somehow.
I've seen "vegan" dishwasher soap, too.
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Everything has been fundamentally detached from reality, from stocks to housing. Houses can sit empty without tenants for years but they’ll only go up. Companies can be unprofitable for literal decades but they’ll keep finding funding and buyers. Commercial properties can bleed tenant but the prices will only be up. In a world of shrinking growth , stalling productivity, and dying demographics, the market behaves lik…
Is the market acting like infinite growth is baked in, or is inflation simply out of control? And I’m not talking about CPI over the last three years. Stocks have been insane over the last decade. Real estate has been insane over the last decade. Neither of which is measured by CPI. So yea… the market is pricing things like the Fed will keep printing money to prop up assets it explicitly ignores in its inflation calc…
E: To be clear I'm not claiming this is sustainable, only how the system is designed.
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Yesterday was the last day to use the coupons. They officially enter bankruptcy today.
Sona (Conan) is going to miss them. Sorry in advance for the niche reference.
I find the whole situation fascinating. Bed Bath continued to sell hundreds of millions of shares while they were preparing for bankruptcy and retail investors (or meme stock investors) continued to buy them. I assume Bed Bath did all the paperwork that is necessary (like calling out risks, that the raised capital will go to creditors first, etc) for such a stock sale. But it is clear they were doing it out of bad-fa…
The whole stock market in 2023 makes no sense to me, not just Bed Bath and Beyond. So many companies no longer pay dividends. So many classes of stock are now non-voting shares. Common stock shareholders usually get nothing if a company goes bankrupt and liquidates. So if I don't get dividends, can't vote, and am not entitled to a share of the company's assets, what is the actual value in owning stock? Do I just wait…
If they aren't paying dividends (but are profitable), then profits are either going to the balance sheet or into capital and you literally own those things.
It's also difficult to grasp, but share buybacks have the same net effect as dividends (they primarily exist for tax efficiency).
Oracle is a great example here. They have cut their number of share in half [0] over the past decade, while paying a relatively paltry 1.6% dividend yield. So sure, you're not swimming in cash as an owner, but many investors don't want that, they'll gladly take the effective doubling of their ownership of the balance sheet that they've been given instead.
[0]https://www.macrotrends.net/stocks/charts/ORCL/oracle/shares....
I have no great love for BBB, but they saved me countless times when I was looking for last-minute gift ideas. The store closest to me was always packed, and prices were just enough higher than other stores that I figured they were making bank. As the #1 place people think of for just about anything domestic, I don't know how they could be mismanaged so badly that the whole chain goes under?! On the flip side, they r…
> 19 Kids and Counting Reality TV aside, U.S family size hit an all-time low (3.13) in 2003, and has stayed there since. And the birth rate has failed to attain replacement since the early 70s.
Do you have a reference for this? Would love to see what the metric is based on (e.g. does it assume two parents, meaning 1.13 children).
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Are you sure about this? I believe you would prefer a share value increase of $1 instead of a dividend of $1, as you are taxed on dividends as income (income tax) but stock appreciation is capital gains (lower tax than income tax). This is in the context of American taxes.
"Qualified dividends" are taxed the same as capital gains. To be qualified mostly depends on a minimum holding time, 60 days for common stock. https://en.m.wikipedia.org/wiki/Qualified_dividend
Money has time value.
I find the whole situation fascinating. Bed Bath continued to sell hundreds of millions of shares while they were preparing for bankruptcy and retail investors (or meme stock investors) continued to buy them. I assume Bed Bath did all the paperwork that is necessary (like calling out risks, that the raised capital will go to creditors first, etc) for such a stock sale. But it is clear they were doing it out of bad-fa…
That is how markets work. Buyer must match seller. Meme stock investors are only a small % of buyers. Others are funds.
I find the whole situation fascinating. Bed Bath continued to sell hundreds of millions of shares while they were preparing for bankruptcy and retail investors (or meme stock investors) continued to buy them. I assume Bed Bath did all the paperwork that is necessary (like calling out risks, that the raised capital will go to creditors first, etc) for such a stock sale. But it is clear they were doing it out of bad-fa…
Link?
I find the whole situation fascinating. Bed Bath continued to sell hundreds of millions of shares while they were preparing for bankruptcy and retail investors (or meme stock investors) continued to buy them. I assume Bed Bath did all the paperwork that is necessary (like calling out risks, that the raised capital will go to creditors first, etc) for such a stock sale. But it is clear they were doing it out of bad-fa…
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What's Matt Levine's take?
He's covered the decline of BBBY many times in his newsletter, explaining the financial details and shaking his head each time. His Monday April 24th, 2023 newsletter, titled "Bed Bath Moves Beyond", covers the situation once again. It ends: "Bed Bath saw that its retail shareholders wanted to throw their money away, and that its sophisticated lenders wanted to get their money back, and realized that there was a trad…