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Bed Bath & Beyond Inc. Message Board

  • waltburke waltburke Mar 18, 2008 8:06 PM Flag

    Auction Rate Securities

    BBBY has a large percent of their cash (326 million) in the form of Auction Rate Securities (ARS). They recently issued a press release because they are unable to get a bid on these at auction. So now you have a company selling housing related discretionary merchandise in the largest housing bust in US History, who has burnt a huge portion of their cash buying their overvalued stock while insiders sold, who now is saddled with illiquid current assets that will likely need to be written down, and Randy continues to beat the table about buying. Even their cash cannot be trusted. I am lowering my target for covering my short.

    WB

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    • This is of genuine concern. The ARS mess is of absolutely historic proportions. Bidders of last resort are refusing to bid, the whole market for these things has seized up, as we all know.

      It may take a government bail-out to cure this problem. Or some real strong-arming by the government to get the banks to make a bid at any price.

      It's weird, though, so who knows? Maybe the market will un-seize at any time.

      We are living in very strange times.

      j.

    • Ok idiot linda.linda, you would be up somewhere around 90 grand then from where you are now. If you can not figure that out it is what your value is down from where you started + what your value could have been if you had gone long. Your value was down today more than what I paid for my last car. By the way I really like my car since you say that would not be much of a car.

    • linda.linda_linda_lindaaaaaa linda.linda_linda_lindaaaaaa May 12, 2008 7:24 PM Flag

      Man, you're bad at math, as bad as your investment acumen. LOL, little boy

    • linda.linda if you had gone long instead of short at the time you would have been ahead almost a hundred grand from where you are now. LOL

    • linda.linda_linda_lindaaaaaa linda.linda_linda_lindaaaaaa May 12, 2008 6:12 PM Flag

      'down so much' is a relative term, you being the little boy that you are can not comprehend this...LOL, idiot

    • linda.linda_linda_lindaaaaaa linda.linda_linda_lindaaaaaa May 12, 2008 6:09 PM Flag

      'no-bid' in the REAL WORLD means worthless.

    • I forgot to say linda.linda that you are sure LOL a lot for being down so much. LOL

    • This is not a penny stock board. What an idiot. You can not post to this board to move the price. All reports on this stock say this is one of the main ones to have. You can not change that. I said a week or two that you would be very lucky to break even on this stock. I also said your ego would make you lose big time. If not on this stock it will happen on another one. There is stong support on this stock in the 30s. You can not change that by posting to this board.

    • linda.linda_linda_lindaaaaaa linda.linda_linda_lindaaaaaa May 12, 2008 5:48 PM Flag

      You have a company that is wasting its cash buying its own shares...LOL, yeah, they'll go to $40...in the next life. Meanwhile in the real world, there are alot of BBBY stores on major commerce corners, and all's I see are many gas guzzling SUV's going buy watching the price of gas go up. LOL, so what if the price of gas goes down to $3 per gallon, still going to suck out the life blood of the AMERICAN consumer. And with foreclosures hitting records, I imagine many of those SUV drivers are going to convert those nice bulky rides into bedrooms.

    • So walt you are going to lower your short from 15 down to what? How many months have you had that short position now? You could have made a killing when it was down at 25 and covered and go long while it went back to 32. There have been much better trades than to be short this position except for the end of the year tax selling that went on and lowered earnings that everyone had. I would not be a big buyer at this price though because I think there are far better buys but I also would not be shorting here. If the market keeps increasing here a short position would get killed.

      • 1 Reply to randyfromleroy
      • And one more thing Walt, in the auction anouncment they also brought up that they have millions of more dollars in treasuries. Did you read that part. Together they come to about 500 million. They are not cash strapped. It sounds like with all that cash they did not buy enough stock back though while it was in the 20s. I would have thought that would have been a great move in the mid 20s. I have been watching this stock off and on for years now and years ago people like you were saying BBBY would not make it and was going down the tubes. Billions of dollars of income later they are still doing fine. As far as the securities that you say are in trouble, the value may not be dropping at all. We do not know but higher quality securites like they are supposed to have can possibly do better if the auctions fail because the interest goes up.

 
BBBY
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