It seems that BBBY has been heavily shorted in the past - which is a bet on the decline in the stock's price. Investors that are bullish on BBBY need to believe that the company has a path to overcoming these and other difficulties in the years ahead. This may cause liquidity issues, as the company has negative cash from operations at $-337m in the last 12 months. This stock is extremely risky and is currently in the spotlight of speculators, so make sure you do your own due diligence, as we will not be discussing most of the negatives or possible trading strategy in this article.įor example, a major risk for the company is its outstanding $1.38b in debt, while market equity is at $650m. However, a change in their business model may improve future margins and there may be fundamental potential for the stock - which is what we will explore in this analysis. The stock is beaten down by short-selling, with some 35% of shares being shorted by July 14th, 2022, and analysts are also posting low price targets for the stock which has driven it to a multi-year low valuation. It seems that most of the bad performance of Bed Bath & Beyond ( NASDAQ:BBBY ) is attributable to the negative performance history after 2019. Insiders have bought the stock, but BBBY is still in a risky financial position with more debt than equity. This can also work for retail investors that have a plan.īBBY changed the business strategy in 2019 to importing off label products and selling them as their brand - Inflation is boosting this approach. Experienced traders have the advantage when maneuvering a possible short squeeze.
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