[The beef 675]
[I'm an image]
âShocker⦠a company whose strategy is to send out as many 25% off coupons as humanly possible is struggling.â
- Jeff, on Bed Bath and Beyond
[Read The Beef Online - Click Here](
Hey there carnivores,
Despite the odds, markets rose yesterday.
But two stocks had pretty, pretty, pretty sh*tty days. More on that later.
Keep raging,
Jeff & Jason
[Image]
[I'm an image]
Blood Bath and Beyond
Itâs no wonder Mark Tritton has been making power moves only since taking over as CEO of Bed Bath and Beyond. The company just [announced an earnings miss]( for the ages for its third quarter ended in early December.
Overall, BBB lost 38 cents per share, compared to an expected gain of 2 cents per share. If that wasn't embarrassing enough, the companyâs same-store sales dropped 8.3%, compared to an expected drop of only 5%. Go big or go home, amirite, Mark?
Worst of all, Tritton pulled future guidance for the remainder of the year which is the Wall Street equivalent of not wanting to share your test scores after your friends told you they got higher grades. But, the CEO vowed to come back in the spring with a plan. Hopefully, itâs not just more coupons...
The news sent the countryâs largest purveyor of Squatty Pottys down as much as 25% before [paring losses to 9%]( in the extended session.
Boots weren't made for walkin'
Walgreens [had a rough day too](, as quarterly earnings dropped 25% and revenue came in lower than expected for its fiscal Q1. The drug store chain [cited weak prescription]( volumes thanks to competition from online drug companies, and sh*thead millennials ordering goods like shampoo and deodorant online.
Unlike BBB however, Walgreens kept its outlook in line with previous guidance.
Walgreens' stock jumped in November after news broke that KKR was considering making a $70B offer. Unsurprisingly news of the largest leveraged buyout of all time got investors all hot and bothered. Unfortunately for CVS Lite, the deal talks have stalled as financing appears to be hard to come by.
Without a deal, Walgreens' shares have sputtered and the news today sent the stock down another 6% to $55.83.
The bottom line...
Retailing is about as easy as pimping (read: it ainât).
BBB and Walgreens both face different challenges but a common enemy: the interwebs. Looking at you, Amazon.
[I'm an image]
âDo less⦠youâre doing too muchâ¦â
Seriously. Donât overthink it.
Check out my (Jeff here) [Bullseye Trade]( strategy. I deliver my highest conviction trade of the week directly to your door (er, email inbox) each and every Monday.
Oh and Iâll tell you EXACTLY when to get in and when to get out.
[IâM READY TO DO LESS](
[I'm an image]
âï¸ 30 minutes or less. SoftBankâs run of miscalculated investments has continued into the new year. Glad to see Iâm not the only one that continued being a piece of sh*t in 2020. Zume Pizza, a robotic pizza-making startup backed by Masayoshi Son and SoftBank via a $375M investment at the end of 2018, is [cutting half its staff](⦠and shuttering its pizza biz. So, the entire thing? The company said it will instead focus on its nascent packaging line, food production, and delivery systems. Wait, what?
âï¸ Firing on all cylinders. Grimes, the musician, and girlfriend of mad scientist Elon Musk took to Instagram to [post]( a âtastefulâ nude of herself with a baby photoshopped inside of her. There was no caption, and users jumped at the chance to suggest that Grimes was pregnant. Her comment that hinted at pregnancy certainly helped fuel the flames. Grimesâ post was soon censored by the notoriously anti-nipple Instagram, but not before people made all of the Cybertruck jokes imaginable. Itâs worth noting that Grimes is a notorious troll, and she does have a new album coming out soo...
âï¸ You going to finish that? GrubHub is looking for a buyer... maybe. The delivery company is speaking with advisors to [review moves]( to combat rising competition and a falling share price. Options include a merger or even the potential sale of the company. GrubHub is also bracing itself for the possibility of an activist investor buying up shares. Considering the company's market value is down to $5B from its $13B valuation a year ago the vultures could be circling.
âï¸ All is calm... for now. Donald Trump turned the other cheek, kind of. Rather than ushering in a nuclear apocalypse, The Donald chose to hit Iran in the pocketbook. The White House said on Wednesday that the US will âimmediately imposeâ new [economic sanctions]( on Iran following the missile attack on a base housing US soldiers in Iraq. Things might be even better than calm, especially if youâre playing the stock market. On the day, the Dow [climbed]( 0.6%, while the Nasdaq rose 0.7%. The S&P climbed 0.5%, just missing the all-time high it hit on January 2nd. We finally figured out what war is good for, you guys: the stock market.
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