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Bed Bath & Beyond Buyback: Ready for a Boon?

By Mark Reeth and Sean O'Reilly – Jul 16, 2014 at 6:00PM

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The home-goods retailer is taking on some debt to buy back shares, which is unusual for this otherwise conservative company. Is this a sign that investors should jump into Bed Bath & Beyond today?

Bed Bath & Beyond (BBBY -24.79%) recently sold $1.5 billion in bonds to fund share repurchases. The company had little debt before this, so its willingness to take it on and then engage in a buyback is interesting, and certainly something that Bed Bath & Beyond investors should be aware of.

In this segment of The Motley Fool's Where the Money Is, consumer-goods editor Mark Reeth and analyst Sean O'Reilly discuss where Bed Bath & Beyond fits into the home-goods landscape, whether the company is undervalued, and why its taking on debt is a big step for the business.

Mark Reeth has no position in any stocks mentioned. Sean O'Reilly has no position in any stocks mentioned. The Motley Fool recommends Bed Bath & Beyond. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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