Honestly, I thought I was going to steamroll right over Matthew's Bear case for Bed Bath & Beyond
But if you think I'm ready to fall to the canvas, think again.
You remember those high and rising margins I referred to in my Bull case? Those are very attractive to competitors. Luckily, competitors like Pier 1
But Matthew said he worries about what Target
So it comes down to a question of valuation. This is where no two value investors are the same. We present our best estimates and go with our judgments. While store openings and sales may be slowing down, the company continues to get more out of its stores. That's why I think free cash flow, adjusted for growth capex, can grow faster than expected and the stock can outperform the market -- even at today's prices.
Bed Bath & Beyond is both a Stock Advisor and an Inside Value recommendation. Wal-Mart is also an Inside Value pick. Those two newsletters are handily outperforming the market. To see why, click either link to take your free 30-day trial.