Two words explain why Bed Bath & Beyond (BBBY) continues to plunge despite a rock bottom price-to-earnings multiple: shrinking margins. For five years, I have heard analysts describe the stock as cheap because of the low P/E, but those who bought at $80 a share and held will likely never see a return on their investment.
And yet, at a market capitalization of $4 billion for the entire company, BBBY is inching closer to the point where there could actually be some real value. What many investors do not realize is that BBBY is actually a holding company for a number of different retail assets, including a growing bargain chain called Christmas Tree Shops (known as “andThat!” in some markets).
