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Case
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Reference no. 9-196-123
Published by: Harvard Business Publishing
Originally published in: 1996
Version: 10 May 2000
Length: 32 pages
Data source: Published sources

Abstract

This case examines how accurately investors have incorporated information about the growth strategy of Bed Bath & Beyond (BBBY) into share price, especially given the changing competitive environment in the housewares industry and the recent Barron's article pointing to several negative indicators at BBBY. The red flags highlighted in the article include BBBY's request for extended payment terms with its suppliers, inventory buildups, insider sales of stock, and growing short interest in the company's stock. In the days following Barron's article, BBBY's share price falls by more than 10%.

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Abstract

This case examines how accurately investors have incorporated information about the growth strategy of Bed Bath & Beyond (BBBY) into share price, especially given the changing competitive environment in the housewares industry and the recent Barron's article pointing to several negative indicators at BBBY. The red flags highlighted in the article include BBBY's request for extended payment terms with its suppliers, inventory buildups, insider sales of stock, and growing short interest in the company's stock. In the days following Barron's article, BBBY's share price falls by more than 10%.

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