In rare cases, Wall Street analysts set price targets for stocks of public companies at $0 per share. The most recent case is Morgan Stanley’s Jamie Rollo, whose analysis indicates that Carnival, the cruise line operator, can drop that low.
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Another company in the deepest of troubles is Bed Bath & Beyond. Loop Capital Analyst Anthony Chukumba recently wrote that the retailer will be out of business soon. He commented: “We are in the end days. These results were a dumpster fire, there is no other way to put it.” His remarks were a reaction to the retailer’s earnings.
The quarterly earnings pushed Bed Bath & Beyond shares down 24% to $5. The stock has traded as high as $35.24 in the last year. Revenue in the most recently reported quarter dropped 25% to $1.5 billion. Comparable sales fell by 23%. Bed Bath & Beyond lost $358 million in the period. The company is low on cash and long on debt.
There have been rumors that Bed Bath & Beyond has ignored upgrades of its stores, and even that it has cut off air conditioning. Independent board member Sue Gove has taken over as chief executive for the time being. No one with sense will take the job.
The open question is who will buy the inventory and rent the stores when the company is gone.
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