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   Non-TechBed, Bath, and Beyond (BBBY)


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From: Paul Senior3/11/2013 12:54:05 AM
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Positive write-up in this week's Barron's:

"One of the country's most successful retailers is on the bargain counter.

Bed Bath & Beyond has generated 16% annual growth in earnings per share over the past 10 years. But its shares, at $59, trade for less than 12 times projected profit for its fiscal year that ends in February 2014. The stock (ticker: BBBY) trades at a discount to other top retailers', including Costco Wholesale (COST) and Target (TGT), neither of which has such a good profit history.

The shares could trade into the $70s in the next year, simply based on projected earnings gains and a higher price/earnings multiple. The insular company could attract interest from private-equity investors or even Berkshire Hathaway (BRK.A) if Bed Bath & Beyond's co-founders, Leonard Feinstein, 75, and Warren Eisenberg, 82, decide to sell. However, there is no indication that the company is looking to sell.

A BUYER MIGHT PAY $85 a share—roughly 10 times this fiscal year's projected earnings before interest, taxes, depreciation, and amortization (Ebitda)—consistent with prices paid for other quality companies, versus Bed Bath & Beyond's current modest valuation of 6.5 times. The company's $13 billion market value makes it large, but digestible. "This is a high-quality, cash-rich company that could see improving margins this year, particularly in the back half," says Laura Champine, an analyst at Canaccord Genuity who carries a $74 price target on the stock. Bed Bath & Beyond has commanded an average of 15 times forward earnings in the past seven years."

etc.

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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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From: Glenn Petersen3/7/2022 3:53:21 AM
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Chewy Co-Founder Ryan Cohen Takes Large Stake in Bed Bath & Beyond, Pushes for Changes

Billionaire investor wants the chain to simplify its turnaround plan and consider a sale or separation of Buybuy Baby

By Cara Lombardo
Wall Street Journal
Updated March 6, 2022 7:06 pm ET

Ryan Cohen, the billionaire co-founder of online pet-products retailer Chewy Inc., CHWY 2.91% has a big stake in Bed Bath & Beyond Inc. BBBY -3.40% and is pushing the housewares retailer to streamline its strategy and explore strategic alternatives.

Mr. Cohen, who also serves as chairman of videogame retailer GameStop Corp. GME -5.70% , owns a 9.8% stake in Bed Bath & Beyond through his investment firm, RC Ventures LLC, according to a copy of a letter sent to its board Sunday that was viewed by The Wall Street Journal. That makes him a top-five shareholder in the New Jersey-based chain, which has a market value of roughly $1.6 billion.

Bed Bath & Beyond has hundreds of physical stores around the country and operates the Buybuy Baby and Harmon retail chains. While its shares initially received a boost from the pandemic, they have fallen over the past year and closed Friday at $16.18, not far from where they were three years ago.

The chain has a turnaround plan that includes reducing the number of products in its stores and launching new private-label brands. But this plan left it vulnerable to supply-chain issues roiling the retail industry and caused it to cede more sales to rivals such as Amazon.com Inc. and Target Corp. Some analysts who initially backed Chief Executive Mark Tritton’s plan are now questioning its viability.

Mr. Cohen says in the letter that Bed Bath & Beyond’s strategy is failing to stem sustained market share losses, noting that core sales dropped 14% from a year ago in the most recent quarter.

He urges the company to take two main steps: narrow the focus of its turnaround plan and maintain the right inventory mix to meet demand, and explore a separation of the Buybuy Baby chain or a sale of the entire company.

He writes that given Buybuy Baby’s growth trajectory, it could be worth several billion dollars. He also writes that the entire company could be better off in the hands of a private-equity firm.

He says the company should better align leadership compensation with results.

Far from a typical activist, Mr. Cohen gained a cult following after he built a big GameStop stake and in November 2020 criticized the company for moving too slowly toward e-commerce. He joined GameStop’s board in January 2021, which contributed to the Reddit-fueled jump in its shares that followed, and took over as chairman in June 2021.

GameStop’s shares are trading lower than they were a year ago, closing Friday at $111.66, but roughly 30 times where they were two years ago. At its peak in January 2021, the stock hit $347.51, giving the company a market value of over $20 billion. GameStop’s market value currently stands at about $8.5 billion. Its sales have been increasing.

Mr. Cohen says in the letter that given his focus on GameStop, he isn’t in a position to become a Bed Bath & Beyond director himself, but he doesn’t rule out his firm nominating directors if necessary. The window to nominate directors to the company’s board is open now and closes mid-March.

Raised in Montreal, Mr. Cohen co-founded Chewy in 2011. He served as its CEO through 2018 after leading the company to a $3.35 billion sale to PetSmart Inc. In addition to a sizable position in GameStop, RC Ventures has been a large shareholder of Apple Inc. for years.

This isn’t the first time that Bed Bath & Beyond has come under activist-shareholder pressure in recent years. Mr. Tritton was named CEO in 2019 after a trio of activists pushed to revamp the board, saying the company hadn’t adapted to the rise of e-commerce and shrinking profit margins. The activists reached a settlement agreement that put four new directors on the company’s board.

Write to Cara Lombardo at cara.lombardo@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared in the March 7, 2022, print edition as 'Investor Targets Bed Bath & Beyond.'

Chewy Co-Founder Ryan Cohen Takes Large Stake in Bed Bath & Beyond, Pushes for Changes - WSJ

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