Comparable store sales in the fiscal third quarter of 2007 grew by approximately 0.8%, compared with an increase of approximately 4.6% in last year's fiscal third quarter.
SSS fell to .8% from 4.6%. They are probably going to post the first drop in sss ever, for the mar q. Earnings estimates are for a reduction of 15-20%
Now, with gas at $3.50, the economy in the tank, tons of competition, deteriorating fundamentals, an outmoded concept, and a tapped consumer.. you really think this stock is going anywhere?? At best, it will be cut in half in 3 months. At worst, well....
No one is doubting that this is a well run co with a good cash position.. The problem is.. The consumer is tapped. High gas prices, stock market and home equity losses and the inability to top home equity are severely crimping descretionary spending. New towels are low on the priority list of consumers today. This coupled with tremendous competition from the box stores and target & walmart,mean eroding valuations and margins ergo: lower multiple of forward earnings, which will have to be trimmed again.
You are forgetting one thing gestumble. The market looks into the future to determine stock value. Sure a missed profit for a quarter is going to drop it some but if it is still a strong company the big buyers come in and buy up the undervalued stock. You have to look at the current market condition like you would a personal situation. If you have a big car repair bill one month does not mean that you are going to have one every month. It does not mean that you are going to go bankrupt if you have zero savings for a month.
Did you see today where BBBY has 576 millinon dollars in AAA securities and treasurys? That is pretty good for a company supposedly falling apart and going down the tubes. That must have been a lot of sales of bath towels.
davzej I hope you did your homework really well so you must know what a lot of other people don't know. You will either be rich when BBBY hits $13 or I hope you did some research not only on the stock and the business but also on the homeless shelters in your area.