Independent futures trader. One-time Wall Street trader. Former tech entrepreneur. Georgia Tech alumnus. Trade for income; Invest for retirement.
Oct 3, 2018 • 10 tweets • 2 min read
(1) I recently decided to do some trench work on $BBBY as a possible turnaround play. The stock is down over 80% from its 2015 peak and, on the surface, boasts some interesting metrics:
(2) The stock sells for a mere 0.16X sales, 0.66x book, 5X earnings, and 2.4X cash. Despite recent trouble, the company also produces a 14% ROE and pays a 4.6% dividend. None of these numbers matter, however, if sales continue to decline. So what is holding back sales?