I finally found a stock even I won't buy

submitted by Musky from i.imgur.com

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[–]Evola 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (4 children)

Can you explain it to a financial noob, so it peaked at 11.6 and then fell by a factor of about 60?

[–]Musky[S] 4 insightful - 1 fun4 insightful - 0 fun5 insightful - 1 fun -  (3 children)

That's what the chart shows, the backstory here is that the company, Bed, Bath, and Beyond is doing really badly, just filed for bankruptcy protection. They were a darling of Reddit for a bit -- a so-called meme stock --and their stock price got pumped but now everything is crashing and burning. They're about a billion in debt they can't cover, their prospects for purchase are bleak, any retail estate holdings they may have are shakey, they're being delisted from NASDAQ, and when all is said and done after their assets are liquidated, the last people to get paid are the common share stockholders, so everyone who invested in this is basically fucked with almost no hope of a recovery.

I like making gambles on devalued stocks, but this is too bad even for me.

[–]send_nasty_stuff 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (1 child)

I always liked their stores. A mixture of cheap staple items combined with BIFL type wares. I'm wondering if part of their current predicament is that people just don't buy housewares when the economy is tanking. Additionally, BBBY is a company that benefits from wedding registries and nobody wants to get married anymore!

Obviously online sales continue to kill all types of brick and mortar establishments.

[–]Musky[S] 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

I love kitchen stuff and nice sheets, I did not shop at BBBY and neither did anyone else I knew anymore. Like say I wanted a knife, I see they are selling a 8" Zwilling chef knife for $160 that's $130 on Amazon, and a Henckels for $80 that's $54 on Amazon. Not that either of those are terrible knives, but they're being bumped up to a price point they don't compete at. And although not terrible, neither brand would be my choice even at the lower price.

Their prices were too high for their quality. Maybe with their coupons you could whittle that back down into more reasonable prices, but you could just not and buy elsewhere.