![]() The Nasdaq, the exchange where Bed Bath shares are listed, will eventually kick out a company whose stock price stays under a dollar for too long. It's still a 70-cent stock, but you've gotten 100% return. That leaves mostly speculators - chasers of a quick profit.ĭUQUESNAY: It's pretty easy for a stock to move a couple of cents, and that's a big percentage gain - you know, a pop from 35 cents to 70 cents. Even traders who bet against the company are usually gone by the time you hit penny stock. SELYUKH: Given months of bankruptcy warnings, these are long odds, which is why duQuesnay suspects at this point people trading Bed Bath shares probably aren't really thinking of the company's long-term future. SELYUKH: As long as someone is out there in the market betting that Bed Bath is worth something, maybe it will turn around or even get acquired.ĭUQUESNAY: They are going to have a price, even if it's one penny. SELYUKH: But as long as there's a glimmer of hope for Bed Bath, duQuesnay says.ĭUQUESNAY: It's pretty hard for a stock that's still trading to actually hit zero. And they do what every horror movie character does, which is open the basement door.ĭAMODARAN: You know, this isn't going to end well. The teenage boy or girl who pauses outside the door to the basement. Damodaran has an ominous view of its chances.ĭAMODARAN: Bed Bath & Beyond at this point resembles that character in a horror movie.ĭAMODARAN. Bed Bath still has a few hundred stores and the Buybuy Baby chain, but it's been facing pretty fundamental problems - losing shoppers and, therefore, money, struggling to compete online and lately to even keep its shelves stocked. SELYUKH: Aswath Damodaran is a finance professor at New York University. Rinse, repeat.ĪSWATH DAMODARAN: At this point, you're getting what I call the desperation capital. It's Bed Bath fighting for survival, warning of a bankruptcy again and again, then getting a lifeline from a lender or an investor. SELYUKH: Blair duQuesnay is a senior adviser at Ritholtz Wealth Management. Is all it takes to be a Bed Bath & Beyond shareholder.īLAIR DUQUESNAY: We call this a penny stock when we're trading below a dollar. But how low can this stock or any stock actually go? NPR's Alina Selyukh reports.ĪLINA SELYUKH, BYLINE: Ten years ago, the stock price of Bed Bath & Beyond reached $80. ![]() Of course, that's a sign of a company in trouble - near bankruptcy. Buying one share of Bed Bath & Beyond now cost only 31 cents.
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