BBBY Stress Test and Analysis as a Portfolio Investment
BBBY Stress Test and Analysis as a Portfolio Investment
The so-called “news” flow and market prices of both, debt and equity, of Bed Bath & Beyond, Inc. (Ticker: BBBY) is apparently showing distress. Some “analysts” or media persons are going around writing articles and giving interviews that the company is headed for bankruptcy. Further, there is huge volatility because now it is a “meme” stock. One thing is for sure that the so-called “analysis” and “conclusions” of Mr. Market are driven by the price action and not the other way around. Even S&P credit rating has cut the ratings to CCC with a negative outlook.
In contrast, a Scientific Investor’s analysis is driven by fundamental analysis of the company’s operations and balance sheet and that provides a view on whether the company is a going concern, has a persistent competitive advantage, can be valued or not and then what is the possible range of its intrinsic value.
Since, BBBY is part of the Omni Supreme portfolio, we would like to lay out what our current thoughts about the stock are.
Is BBBY a going concern? Will it be able to manage liquidity and survive?
Read more in the report or download it, What is happening with BBBY August 2022