Is lowering the price a good thing?
$Bed Bath & Beyond Inc(BBBY.US$ let me see if i understand BofA securites correctly. When BofA valued BBBY at $55 per share, they considered it neutral; but, lowering the value to $38 it is now considered a buy...... is making less per share considered appealing to BofA?
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Mcsnacks H Tupack : I don’t get how they say the short squeeze is over. But if it’s being shorted then how can it not be squeezed. Pinko commie rag! Written by the hedge funds for discouragement
PO6 : It’s considered undervalued and thus becomes a buy....
if item cost 6USD and item goes to 5USD 6= neutral 5=sale
Financewizard OP PO6 : I get that an undervalued stock is a buy. My question is BofA had a target price of $55 (meaning they think it is worth 55 in the long term) was neutral. They lowered their target price to 38 (meaning they don’t think it will reach 55 but 38 instead in the long term) is now a buy. If you had the option to purchase 2 different stocks at the same price in the same industry but one was valued at 55 per share and the other 38, which would be considered a buy to you? The valuation of the future stock price should be based on fundamentals not the current stock price.
PO6 : Because 55 is overvalued and thus inherently more risky, just a thought. However, just wondering, what do your fundamentals tell you?
Financewizard OP PO6 : I’m out of BBBY. I like what they are doing but I prefer to own profitable companies once It hits the $20 per share price. I was interested in $$Bed Bath & Beyond Inc (BBBY.US)$ but some strange stuff (IMO) is happening with it. I wanted some insight why BofA did what they did because I can’t see it. I’m also not a financial expert. Just a guy with 2 thumbs and an opinion.
Looks like 25% of it is sold short and 120% of float is owned by institutions. Looks like the availability of stock is driving the price more than expectations. Idk tho.
Violets : I don't follow bofa advice at on anything