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Bed Bath and Beyond files for bankruptcy

nytimes.com

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Re: Bed Bath and Beyond files for bankruptcy

#281

Post by adam_arthur »

lbwtaylor wrote: post #271
adam_arthur wrote: post #186

Earlier quoted context omitted.

They didn't sell nearly enough shares. They could have probably saved their business, at least in the short term, by selling more. Their shares outstanding barely increased even as the price rocketed unjustifiably higher on meme energy. I'm consistently amazed by the poor management by CFOs of companies not selling shares when their P/E or even P/S multiples are 100x+. This is 100% free and exploitable money availabl…

> They didn't sell nearly enough shares. This doesn't seem to be right. From Matt Levine: >On Jan. 20, Bed Bath & Beyond Inc. had about 117.3 million shares of common stock outstanding; the stock closed that day at $3.35 per share. On March 27, it had about 428.1 million shares outstanding, at $0.7881 each. On April 10, it had 558.7 million shares outstanding, at $0.2961 each. Yesterday, April 23, when it filed for b…

Yes, they waited until the share price was close to 0 to start selling rather than when it spiked to 20. Note the dates in what you quoted versus their stock chart.

If they had actually sold earlier when the stock was largely mispriced to the upside, they may have been able to turn it around. Good capital management is raising money when you dont need it in preparation for time that you do… not panic selling as your stock is already on the verge of bankruptcy.

My commentary was exactly that. That companies should raise when their stock is fundamentally overvalued. There are hundreds of companies out there that sure wished they had raised in 2021. Many of them are likely to follow in BBBY’s footsteps

Really poor execution by CFOs across the board. I think a combination of being overly optimistic, plus personal incentives against lowering the share price in the short term (Stock based comp, board may be short term oriented and decide to fire you, etc).

Re: Bed Bath and Beyond files for bankruptcy

#282

Post by kyrra »

crazygringo wrote: post #102
bearjaws wrote: post #31

This is a huge loss IMO, buying kitchen supplies and bedding on Amazon is complete shit. Target isn't much better due to lack of variety and types of bedding. I've bought the same bed sheets for 5+ years, a few months ago I bought new ones since some bleach got spilt on one set, it comes in and I could tell immediately the quality was far worse. One wash later, its ripping & fraying. Thankfully I could return them. S…

No, BBB had low quality crazy overpriced items. Yes it was good to be able to see and try items before buying, but then they'd just fall apart. With Amazon, yeah it sucks I sometimes have to return things because you couldn't try it in person. But on the other hand, I wind up buying much higher quality items on Amazon, and at a cheaper price, because the top 15 reviews together usually give really solid feedback on h…

They used to have higher end stuff, but shifted to different brands over the last few years. See: https://www.wsj.com/articles/bed-bath-beyond-ceo-private-lab... (https://archive.is/xacpG)

Re: Bed Bath and Beyond files for bankruptcy

#283

Post by stametseater »

zo1 wrote: post #111
cratermoon wrote: post #62

Earlier quoted context omitted.

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.

A lot of soap is made out of animal fat. Less these days than before, and I doubt any dishwasher soap is, but I suppose you could.

Re: Bed Bath and Beyond files for bankruptcy

#284

Post by mahogany »

Etheryte wrote: post #132
neurobama wrote: post #52

Earlier quoted context omitted.

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…

Stockholders are not supposed to get anything if the company they're holding goes to zero, that's not a bug, that's literally how stocks work.

This reply (and several others) is focusing on one part of the comment and ignoring the overall point.

The question is: if companies are no longer giving dividends, no longer giving voting rights, and you get nothing if it goes to zero, then what, intrinsically, is the value of a stock tied to? Is it something other than "stock will go up so someone will buy it at a higher price"? How does it differ from, say, Bitcoin?

Re: Bed Bath and Beyond files for bankruptcy

#285

Post by traverseda »

bumby wrote: post #211
kevinventullo wrote: post #191

Earlier quoted context omitted.

Are you sure? Housing prices in my small Midwest hometown have risen by something like 1%/yr on average for the last 30 years.

Just curious, what's the population growth been like? If it's been declining, why would we expect housing prices to go up at all?

General inflation?

Re: Bed Bath and Beyond files for bankruptcy

#286

Post by graeme »

adam_arthur wrote: post #281
lbwtaylor wrote: post #271

Earlier quoted context omitted.

> They didn't sell nearly enough shares. This doesn't seem to be right. From Matt Levine: >On Jan. 20, Bed Bath & Beyond Inc. had about 117.3 million shares of common stock outstanding; the stock closed that day at $3.35 per share. On March 27, it had about 428.1 million shares outstanding, at $0.7881 each. On April 10, it had 558.7 million shares outstanding, at $0.2961 each. Yesterday, April 23, when it filed for b…

Yes, they waited until the share price was close to 0 to start selling rather than when it spiked to 20. Note the dates in what you quoted versus their stock chart. If they had actually sold earlier when the stock was largely mispriced to the upside, they may have been able to turn it around. Good capital management is raising money when you dont need it in preparation for time that you do… not panic selling as your…

Companies will not find unlimited liquidity at given share prices.

Re: Bed Bath and Beyond files for bankruptcy

#287

Post by trog »

cjohnson318 wrote: post #57
bearjaws wrote: post #31

This is a huge loss IMO, buying kitchen supplies and bedding on Amazon is complete shit. Target isn't much better due to lack of variety and types of bedding. I've bought the same bed sheets for 5+ years, a few months ago I bought new ones since some bleach got spilt on one set, it comes in and I could tell immediately the quality was far worse. One wash later, its ripping & fraying. Thankfully I could return them. S…

Totally agree. Online shopping is only going to get worse: more expensive, less quality, harder to return. On the other hand, brick and mortar places are going to have less variety, and lower quality. You'll spend more time driving all over town to return things or driving all over town to find simple things in stores. Fifteen years ago Target had some pretty solid clothing options, but now it's basically only good f…

> Totally agree. Online shopping is only going to get worse: more expensive, less quality, harder to return. On the other hand, brick and mortar places are going to have less variety, and lower quality

What I am hoping might change things is a near-total collapse in the value of commercial & retail real estate. This is clearly already happening and doesn't show any signs of slowing - who is going to take a long term, expensive lease on retail real estate now?!

But once prices have collapsed & property owners are forced to adjust to the new reality, I'm hopeful it might lead to a bunch of new competitors able to roll the dice by focusing on smaller scale speciality stuff, which will eventually grow. Kinda like capitalism has promised forever, except maybe this time it might actually happen?!

Re: Bed Bath and Beyond files for bankruptcy

#288

Post by cuteboy19 »

spaceman_2020 wrote: post #118
neurobama wrote: post #52

Earlier quoted context omitted.

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…

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…

A zero interest rate phenomenon

Re: Bed Bath and Beyond files for bankruptcy

#289

Post by Sniffnoy »

polygamous_bat wrote: post #222
Sniffnoy wrote: post #208

Earlier quoted context omitted.

> As usual Matt Levine's take on this is a good read. Link?

He regularly writes a column on Bloomberg called Money Stuff, you can see a few examples of him talking about BBBY here: https://www.bloomberg.com/opinion/authors/ARbTQlRLRjE/matthe...

Sure, but I was hoping that the commenter above would link the particular piece they had in mind rather than just referring to it.

Re: Bed Bath and Beyond files for bankruptcy

#290

Post by esafak »

Eumenes wrote: post #199
bluedino wrote: post #169

Earlier quoted context omitted.

Abandonded houses are often stripped of copper, etc and have squatters, vandals, problems from not being maintained or lived in...

Abandoned? You know people own two homes and live in them seasonally w/o them being vandalized? Source: have a summer cabin that's never been rack sacked by vandals.

ransacked. Dictionary says it's from Norse: rann (house) + soekja (seek).
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