Bed Bath & Beyond (BBBY) is a small cap home and goods retailer that operates under its headline name as well as Christmas Tree Shops, Harmon, Cost Plus and a few others. They have also tried to get a better foothold into the precious online market through acquisitions of One Kings Lane and PersonalizationMall.com. Their main strategy is to mail out their typical 20% off one item coupon to get people into the store and hope the consumer buys more than they intended to. I haven’t been into a BBBY store in quite a while so while I can’t comment on the stores, I am amazed at the valuation being placed upon this retailer. I understand that their market is very competitive, competing with Target (NYSE:TGT), Walmart (NYSE:WMT), IKEA, Amazon (NASDAQ:AMZN) as well as others, but their financials are in very good shape and the price seems extremely reasonable.
