Bed Bath and Beyond - Beyond saving?

No doubt there could be some near-term upswings due to the stock being oversold, but it would take a miracle for the stock to rally for the mid to long term.

Here's why

Revenue growth was a problem for BBBY even before its current fiasco. Topline has been flattish for a few consecutive years.

Then when the topline starts to dwindle, the company fell into losses.

Even before the current liquidity crunch, BBBY's current liabilities have been always higher than its cash on hand.

Inventory has always taken up 20% of BBBY's current assets. And that means if the company does not have a high turnover, it cannot turn its inventories into cash fast enough to service its short-term obligations, which will result in liquidity issues.

Before the meltdown, BBBY's operating cash flow over its current liabilities has already given some red flags.

It's operating cash flow over current liability has always been under 1. That means the cash generated from its operations cannot ensure BBBY services its current liabilities, be it paying its suppliers or financing its debt.

All it takes is just 3 simple analyses to tell me that fundamentally, BBBY's stock price is not going to go up by leaps and bounds from a fundamental point of view.

But what do you think?

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