Summary
- BBBY is now the subject of an activist campaign.
- The activists think the board and CEO should all be replaced, but this perspective is years late.
- If anything, the current management group deserves credit for enacting a bold turnaround plan.
- Even after the spike higher on the news, BBBY is very cheap, offers a nearly 4% yield, and a compelling turnaround plan.
A struggling stock perks up
I've been bullish on Bed Bath & Beyond (BBBY) in recent months since the company's shares cratered late last year. BBBY has struggled mightily with a variety of issues related to its stores and online players stealing market share in recent years, with terrible impacts on the company's earnings. However, I think management has a plan that will drive traffic to the stores, and with the new wrinkle of an activist threat, it would appear to me that the gains seen to date are likely just the beginning. Even after the enormous move up on Tuesday, I think BBBY is a buy.
