In May 2017 I was invited by Diego Moreno to the Forum Family office event in Omaha, the day before the Berkshire Hathaway meeting. At the event, I presented a long idea which was Bed Bath & Beyond (BBBY). Today I changed that view. To see the 2017 presentation please click here to see or download the presentation. (If you ‘run’ the slideshow in PowerPoint then you will also hear my voice as I had done a practice run).
Yesterday, BBBY came out with results and it was a mess. Margins continue to drop and management appears incompetent. In my opinion, they need to be replaced. The conference call was a rehash and guidance for next year was significantly lower. Analysts appeared extremely frustrated and one even asked the same question 3 times. The CEO also responded both Yes and No to an analyst regarding a very straightforward question regarding the implied decline in EPS in 2 years. If we place a multiple similar to other problematic retail stories results then the stock re-prices significantly lower.
I have expressed my frustration, estimates for EPS and EBITDA for the next 2 years, along with what I believe are the most important comments from the conference call in an article on Seeking Alpha. Click here to read that article.
