You have ALL said ad nauseam that BBBY would "tank" after options expiration. You all had some conspiracy type, market manipulation b.s. that was "keeping it above 25". "Just wait" you all proclaimed until OpEx. Well, I'm still waiting and guess what?? BBBY is doing much, much better than just about any retail stock right now. So please stop with your whining. I'm sorry your short position isn't working out as you were so positively sure it would. When the market goes green big tomorrow, BBBY will follow it up. Logic, people. Logic.
In case you havent noticed, the RTH (retail index) is in a downtrend. It broke down this last week and is now below its 50-day MA. According to Bill O'Neil's work on stocks (outlined in his 1987 classic, How to Make Money in Stocks), 1/3 of a stock's performance is dictated by the health of its sector. That alone makes BBBY a perilous proposition, as it's swimming against the current of a dead consumer.
It reminds me a bit of JPM. Remember last year when JPM defied gravity for a while on the notion that it was "better than the competition". It was the white knight that was marching in at the last minute to save those other "irresponsible banks" like Bear Sterns and WAMU. Remember that? What do you know? The same ills beseting the rest of the sector have now begun to reflect themselves in JPM. Check that sucker out: 5-year lows minted today.
Or how about URBN (Urban Outfitters)? Same story. They bucked the sector trend until September of last year. Those clowns even had the audacity to raise guidance in the 2Q of the year. But, in September, the BS began to unravel and the stock began to take it in the chin. Now, it's a $15 stock.
BBBY will have the exact same outcome. The market is currently reading way too much into last quarter's "beat". The fact is earnings will be contracting sequentially for as far as the eye can see. Earnings drive stocks. The key here is patience. I'm done adding for now (unless I get a super price like $27).
Looks like with your cost basis of 5k shares at 25.37 you left $5,000 on the table today. Poof! Gone. Oh, that's right you probably traded in and out of it all day and mysteriously made a fortune. That's our retail guru!
Thanks for confirming my point regarding the majority of shorts who post here. It's always name calling and low brow responses. Very classy, phil. You will notice, or maybe not, that I have taken the high road and always refrain from juvenile playground language.
Regardless, BBBY has obviously found a base/bottom at this level. Can you not see that? Can you not see that the Dow is at 7949 yet BBBY has held firmly at 25 area? Use simple logic, phil. Don't fight the tape because you "think" or "hope" it will go down. Take what the market is giving you.
Hi, flying...thanks for being so courteous, polite and informed in your response. I have the layoff link on my menu bar and check it daily. I could go on about that for paragraphs but this is not the forum for that. BBBY has formed a nice base here around 25. This is an investor's dream to get a solid bottom like this.
Good luck to you and it's nice to have a civilized short conversing on this board for a change.