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"It's [BBBY] now between $10 and $11 per share, pretty extraordinary business if you think about it, about a 1.4 billion market cap., just over a billion of that in cash, and then a company that threw off $750 million in free cash flow... in the last twelve months... growing revenues for a very long time, an iconic American retailer... they're paying almost a 5% dividend... for the record I think it's worth more like $40 or $50 and I wouldn't be surprised if in the next year we see it return to that sort of valuation... "
In the roughly six weeks since the interview, the stock has risen approximately 49 percent vs. 11 percent for the S&P 500 Total Returns Index:Fig. 1: Bed Bath and Beyond stock Price Performance:December 28, 2018 - February 14, 2019
Follow some of Lemelson Capital Management's other recent calls on:
- Ligand Pharmaceuticals (NASDAQ: LGND) Click here
- American Eagle Outfitters (NYSE: AEO) Click Here
- Dicks Sporting Goods (NASDAQ: DKS) Click Here
- Hibbett Sports (NASDAQ: HIBB) Click Here
Watch the full interview on Bed Bath and Beyond below or click here.
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Lemelson Capital is long shares of Bed Bath and Beyond for its clients.
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