One look at the chart below showing Q1 Bed Bath And Beyond (BBB)Buybacks, and we have just three questions:
- WTF
- Is the entire management team about to quit, but not before cashing out of their equity-linked securities first?
- See 1.
No further commentary necessary, although perhaps it is worth noting that in a quarter in which BBBY spent 30 cents of every dollar from its $2.94 billion in sales on $1 billion in buybacks, or about 3 times more than its $368MM in cash from operations, it also spent a “whopping” $88 million on CapEx.
All joking aside, here’s what happened: in Q1 BBBY issued $1.5 billion in Senior Unsecured Notes, and promptly used $1 billion of this to buyback its own shares. Because this time the credit bubble is different.
Thank you Bernanke.
via Zero Hedge http://ift.tt/1uj92cz Tyler Durden