Head for the hills part II: Something wicked this way comes

Bed Bath & Beyond (BBBY)

Bed Bath & Beyond, with a relatively healthy current ratio of 1.83, is not doomed to be consumed by debt, but rather, by a force almost as inexorable: the ability of online merchants to provide goods at a lower cost than can brick and mortar merchants. For this company, profit margins are falling, revenue is falling, stores are closing, and the future looks grim. It’s not my habit to come out against stocks when almost everyone else is already against them, and I concede, that is the case here, but still, there is simply no reason to believe that this company can turn things around. What hope there is centers around the, I suspect, rather far-fetched idea that it can reinvent itself as an online store and compete head to head with Amazon.com. Like I said, far-fetched.

Chart courtesy of www.stockcharts.com

Symbols: BBBY DAL MO SIX WMT
Julian Close

Julian Close

Julian Close became a stockbroker in 1995. In his 20 years of market experience, he has seen all market conditions and written about every aspect of investing. Julian has also written extensively on corporate best practices and even written reports for the United Nations. He graduated from Davidson College in 1993 and received a Master of Arts in Teaching from Mary Baldwin College in 2011. You can see closing trades for all Julian's long and short positions and track his long term performance via twitter: @JulianClose_MIC.

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