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Non-Tech : Bed, Bath, and Beyond (BBBY)
BBBY 12.95-3.6%3:59 PM EST

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From: Amaurizontal6/12/2019 6:29:43 PM
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Last message dates back to 2013 but I have been looking at Bed bath & Beyond for a while as I believe the stock price might be too low. I am still trying to figure if there is a significant enough margin of safety right now.

But when reading the last quarter report, I stumbled upon something quite strange and maybe you guys could give me some hindsights.

They showed a deficit in net income of $253M for the March 2 2019 Report. In fact, the company's management decided to charge against its income a $500M goodwill impairment loss. Without taking into consideration this accounting charge, the real net income should be $150M (when taking tax income into consideration).

Following this quarter report and some changes in the administration board due to two significant active shareholders' actions, the stock price plummeted (from 17.7 to 12.2)

I struggle to understand why companies charge against their income this kind of loss while it is neither a recurring loss, nor is it an operating risk. I believe it should be charged against its capital surplus.
Is there something I am missing here ?
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