It's 2018 and Toys R Us has just gone out of business. This is great news for BBBY, parent company of Buy Buy Baby. As a parent, buying things for my baby is addictive. My GO-TO shops were Target, Toys R Us, Buy Buy Baby, and Amazon. With the downfall of Toys R Us, my money and the money of millions of other parents will be split between less stores. This is a potentially huge catalyst for BBBY, whose shares have been beaten down to a level not seen since 2008. With a P/E of 6.41, I think that BBBY is way too undervalued at these levels. What do you think? Is BBBY a good buy or will it be bye bye baby for this retailer?
Disclosure: I am/we are long bbby.
Additional disclosure: I've opened a long position in BBBY in the past 30 days.