I don't understand. I keep seeing articles on "why" they are, but they're not really explaining truly why. I mean, BB&B and Gamestop were bout to go outta business, I thought. Now I'm utterly confused or why their stocks are soaring through the roof. Then I saw something about Mr. Beast? I'm lost.
I have felt that the stock is oversold for sometime even taking into account retail worries. Its market cap of $1.35 billion compares to $0.75 billion of TTM operational cash flow and the balance sheet looks very healthy with net debt of just $0.5 billion.
However the real kicker in Wedbush’s research is that the value of hidden and non core assets (that activist shareholders are pushing to be sold) are worth almost the same as the market cap plus net debt of the company.
If they are correct then the company could pay off all the debt and return $9.40 to shareholders who would still own the core retail business.
To be precise Wedbush said, "our work indicates that the value of the company's real estate and non-core assets are worth $1.7 billion, nearly equivalent to the company's $1.8 billion enterprise value, meaning you almost get the company's core Bed Bath business for free."
This is not a recommendation to buy or sell. Stocks are not suitable for everybody. Please do your own research.