This page has been archived and commenting is disabled.
WTF BBBuYbacks
One look at the chart below showing Q1 Bed Bath And Beyond (BBB)Buybacks, and we have just three questions:
- WTF
- Is the entire management team about to quit, but not before cashing out of their equity-linked securities first?
- See 1.
No further commentary necessary, although perhaps it is worth noting that in a quarter in which BBBY spent 30 cents of every dollar from its $2.94 billion in sales on $1 billion in buybacks, or about 3 times more than its $368MM in cash from operations, it also spent a "whopping" $88 million on CapEx.
All joking aside, here's what happened: in Q1 BBBY issued $1.5 billion in Senior Unsecured Notes, and promptly used $1 billion of this to buyback its own shares. Because this time the credit bubble is different.
Thank you Bernanke.
»
- 17135 reads
- Printer-friendly version
- Send to friend
- advertisements -
CapEx is bearish. Buybacks are Bullish. BUY BUY BUY. /sarc-ish.
As housing goes, so goes BBB, furniture stores, and "flip this house" TV idiocy. Entire thing is an illusion because a house is a place to live, raise a family, relax and enjoy life, have friends over, and sleep for 1/3 of your life. Of course, it takes a financialized nation to turn one of the most fundamental human needs into an "investment" and poison it.
I do like thier shag-rug toilet seat covers though.
Stock is surging in afterhours....what do you expect....BBBY is run by a bunch of jbags, they know the drill for they are the masters of manipulation.
Grow a pair of tits, women love that store, seriously.
Last time I was there I was in a long line with a lot of Women, one cashier.
Haven't been back.
“Women loved the store” they have big wall clocks which is very similar to big balls and ….. It’s all about the marketing.
Just be careful when you shop there:
http://m.youtube.com/watch?v=iXkwqoEFB0w
How about a third breast?
http://www.dailymail.co.uk/news/article-2766603/Meet-massage-therapist-s...
exactly - following the eddie lampert retail crime of the century, what a greedy little kike
Well, even if you aren't, he sure wants to be friends with you. But keep it down to holding hands for now, okay kids?
You must be friends with Nazi Squid, am I right?
Beat it 3 week jewbie
You guys wanted to be alone? Well, why didn't you say so in the first place? The last thing I want to be is a third wheel for anyone so I'll just let you two get back to it. Leaving now.
You forgot that a house is a place for porking too.
Bacon?
Actually..... buyback rallies can go on for a VERY long time. In case you have missed it, take a look at AZO. They have been borrowing billions per year to buy back stock. The net shareholder equity is now NEGATIVE..... yet the stocks is not up hundreds of percent and near an all time high.
If you are betting that a collapse will come from borrowing and buying back stock, use AZO to slow down your assumptions. These stocks could continue to fly.
The era of low interest rates is ending. Corporations who have been gaming the low rates to bring their earnings per share higher will end as well and end abruptly. Share prices which momo'd all the way up will get destroyed very quickly once the sham is unwound. Bare in mind this is not happening in just a few stock situations but across the entire stock market. There will be massive and unintended consequence revealed as this liquidity is pulled.
Corporate officer position = license to steal.
Yes, this appears to be a grotesque abuse of fiduciary duty.
But, WHO or WHAT is stupid enough to buy the NOTES ???
By the way the ticker symbol should be changed from"BBBY" to "JUNK".
This consumer-driven beast trades at SIXTY-TWO DOLLARS A SHARE and pays no dividend, like Kinross Gold...which actually PRODUCES something and trades at $3.85.
Anyone see any potential upside to BBB stock?
Possibly if they do 2 billion in buybacks next month!
They're buying back at $62+ a share????
Obviously this is a bet o the efficacy of Fed interest rate manipulation. If rates actually are (forced to) rise, they'll be sooooooooo DEAD.
By they you mean the company and common shareholders, and not the insiders selling and cashing in on share price based comp. Obviously, in this day and age the wes and the theys have never been farther apart.
Too true!
During the real estate boom in 2007, banks issued credit to anyone because they immediately sold the loans and, thus, the credit risk. This was the disconnect that allowed the bubble to form. Now, corporations are the ones getting the credit and they are buying back shares to drive their stock prices higher. Management gets their bonuses and don't care about the risk of this strategy, just like the banks in 2007. That is the disconnect that allows the current stock bubble to have formed. Great comment downtoolong!
How do these guys stay in business when you can buy similar stuff at Costco or on Amazon for a lot cheaper? You gotta sell a shit load of towels and sheets to newlyweds to generate numbers like that. WTF is right...the death of retail is nigh.
Actually SELLING stuff- let alone producing anything - is irrelevant in The New Normal. BBB, like many of its counterparts, are horses and it's a betting race
I never understood BBB.
20% off coupons...
Fuck bed bath and beyond wtf is going on with ES?
BBBY has no debt, is trading at 12 times earnings, growing earnings by 9% and isnt paying a dividend. Why are you so surprised they are doing a large buyback?
growing earnings 9%... ok
last time I was there a creepy, mildly retarded sales guy followed me around the whole fucking store... can I help you?
maybe because I was the only potential customer in the whole fucking place?
but the metro/homo sexual store on 6th ave. is doing fine I'm sure, alot of disposable income and newly-formed "households" in the area
Did you mean "assholes"?
no most of those are already worn out in Chelsea and not newly formed
Wow, virulent expressions of hatred for jews, homosexuals, and the handicapped in the same thread. No wonder everyone else in the store leaves (or hides) when you enter the premises. You probably find the same difficulty everywhere you go and then chalk it up as a recession rather than a vote on your personality.
You are so bold with the electrons, my anonymous Nazi friend who mistakes himself for the finger of God.
You must one of those who works on the top floor of the corporate headquarters building, right?
maybe it's jim cramer? BBBY BUY BUY!
say what?
$1.5 billion debt
even if they make the high side of their earnings forecast ... earnings only up 6% (wouldn't even be that if not for buybacks)
file:///C:/Documents%20and%20Settings/Owner/My%20Documents/Downloads/Not...
Heres the data I was going by
http://finance.yahoo.com/q/ks?s=BBBY+Key+Statistics
oh, i see what you did
net earnings were 9% of revenue.
not "growing" by 9%
http://finance.yahoo.com/q/ae?s=BBBY+Analyst+Estimates
that page has the earnings estimates for next 5 years at 9.21% per annum
http://finance.yahoo.com/q/ae?s=BBBY+Analyst+Estimates
that page has the earnings estimates for next 5 years at 9.21% per annum
Shareholder train coming. Bendover.
No growth >>> No capex
Steadily increasing stock buybacks >>> slow path to liquidation of BBB (long-term goal: S/O = zero)
Exactly! The goal is: extract maximum profitability and leave a hollow, insolvent shell.
I was halfway dragged into a local BBB this past weekend because my wife had accumulated about 10 of those 20% off per item mailings they send to anyone who ever shops there. They put a expiration date on them, but the dirty little secret is that they are good as long as the doors are open.
As we checked out, I noticed that they had a decent amount of stuff upfront marked as 'clearance' and it was about 40% 'off' the regular price. It was complete Chinese made shit that cost BBB 3% of the already marked down price. Really just crap with no 'real' use/need but using massive energy ($) to produce in bulk, ship over here, transport nationwide.
Mass Fraud should be a crime against humanity.
Please support this petition at whitehouse.gov.
https://petitions.whitehouse.gov/petition/mass-financial-fraud-should-be...
The petition needs 150 signatures to go "live" to the public.
Pass it on.
What, tired of telling us how your sister made $17,458.25 giving nickel blowjobs last month? Quit spamming every story with your useless bullshit petition. You want to be noticed? Find a tree, grab the nearest banker and some rope, and throw a party. You'll at least be performing a real and beneficial public service this way.
Plus you'll be famous.
:)
It's a nice thought, but whitehouse.gov doesn't give a shit, nor the rest of .gov.
They are in the pockets of the financial fraudsters.
since their cash flow in no way covered this they levered up to do so...makes sense
Bed, Bath and Beyonce.
Well Oracle announced Buy Backs representing of a lot more than the last Q total Revenue....
Bail me out before you go-go 'cause i'm hanging on like a yo-yo.
just don't short any go-pro...
Dante rated FRAUD as one of the worst sins.
Good plan... sell bonds... buy your stock and get everyone excited to ride the rollercoaster. At the top of the ride sell your stock and pay back your bonds. Ride fails, everyone else has to get off and walk down (or fall off) the top of the amusement ride. But oh well, the ride owner is good to go and can open the park again later when a new generation is ready to ride again.
my shopping list for shorts just keeps growing! not sure if i should just start with the ones that are at 10x sales with 'negative earnings' or the ones like bbb that are doing a harekare.
of course then there is tesla.....the combo package!
So what happens when the market tanks and these companies own all these shares?
Close stores, layoff employees, pack their golden parachutes.
History always repeats. These firms are full of mug cfos who will copy other firms. They will get hosed on these buybacks!
maybe cramer the kike will give them his blessing, "i know retail"
And maybe Squid Viscous the envious Nazi will emigrate to a country that will allow him to physically persecute those who are different rather than just talk big on the Internet. Russia is hiring and the same goes for North Korea and IS.
its a hostile takeover by fred in the mail room. Everyone loves retailers with a lot of debt. The internet is dead. long live the big box retailer. Worked well for Linens n things.
It's "private" equity!
Buy Backs has three reasons i) to boost the EPS and that means more bonus for the management. ii) to minimize the dilution of the stock because of managent option programs iii) to buy other companies with stock, and transfer the risk of a drop in value to the other part.
/Edited/ Spanish keyboard... sorry
I went into one of their stores about 15 years ago. It was all stuff that I could easily buy elsewhere, and it was very overpriced. It wasn't all useless stuff - you really can use a cutting board - but most people already have a cutting board. I bought nothing and never went back. However, my anorexic neighbor (since deceased) who loved to frequently buy new household goods in a reputable setting, did shop there a lot using their coupons.
I guess their target audience is upper middle class females who don't like old towels. I think towels improve with age. In a world where people have more money than they know what to do with, they could do well; that world has gone away.
Easy explanation: they had a BB&B 20& off coupon (most valuable, of course, when used for big purchases)
unsecured notes
ok, so who wants to settle first - oops, said it too soon - my bad
this is totally rational behavior. in lieu of fewer new store openings and closure of underperforming stores, the company must reinvest its free cash flow. against a backdrop of strengthening sales and margins, the buyback is the best use of capital.
Money has become so cheap to borrow that many people are now arguing that you must take it even if you don't know what to do with it. It is hard to imagine how much this is distorting the economy, markets, and reality in general. A total disconnect between life on main street and the financial world is occurring and it is putting the economy in a very dangerous place.
It is often hard to determine what is true, but a report on Bloomberg that 32 Trillion dollars in funds were held in offshore accounts around the world made me shutter. How safe is this money, and what exactly is it doing? Can you say Cyprus? More on this subject in the article below.
http://brucewilds.blogspot.com/2013/05/cheap-money-more-and-more-and-mor...