Multiplying "zero" by any numb

2023-04-14

Multiplying "zero" by any number does still yield zero, but despite that, stock is still dilutable. I agree that doing it is still net positive for shareholders.

>>$3.5b in sales is worth what as a stabilized business? Maybe more than $200m market cap on stock and $80m in bonds plus $65m bank debt?

First of all, business isn't stabilized yet, and if it has to file BK first...as seems increasingly likely...current equity will be worth zero.

Value of hypothetical stabilized BBBY business would depend not just on revenues, but on margins, plus growth prospects (if any). EG BBBY was doing $12B/year top line sales just three years ago...still wasn't making any money.

Seems implausible to me that BBBY is going to come out of BK as an operationally profitable newco with $3.5B worth of revenue, but only $145M worth of debt, but if that happened, sure, at that point it "should" be worth a lot more than $200M. Lets see BBBY survive 90 days in Ch 11 first...

$3B家居(BBBY)$

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Comments

Azza85az
2023-04-16
Azza85az
Great ariticle, would you like to share it?
sh99
2023-04-14
sh99
fb hmm

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I agree that doing it is still net positive for shareholders.&gt;&gt;$3.5b in sales is worth what as a stabilized business? Maybe more than $200m market cap on stock and $80m in bonds plus $65m bank debt?First of all, business isn't stabilized yet, and if it has to file BK first...as seems increasingly likely...current equity will be worth zero.Value of hypothetical stabilized BBBY business would depend not just on revenues, but on margins, plus growth prospects (if any). EG BBBY was doing $12B/year top line sales just three years ago...still wasn't making any money.Seems implausible to me that BBBY is going to come out of BK as an operationally profitable newco with $3.5B worth of revenue, but only $145M worth of debt, but if that happened, sure, at that point it \"should\" be worth a lot more than $200M. Lets see BBBY survive 90 days in Ch 11 first... <a data-mention-id=\"BBBY\" class=\"teditor-mention\" data-mention-name=\"3B家居\" href=\"https://ttm.financial/S/BBBY\">$3B家居(BBBY)$</a> <img src=\"https://community-static.tradeup.com/news/30b5207997005a735a1ae2e3ffd82b25\" tg-width=\"275\" tg-height=\"151\"></body></html>","htmlText":"<html><head></head><body>Multiplying \"zero\" by any number does still yield zero, but despite that, stock is still dilutable. I agree that doing it is still net positive for shareholders.&gt;&gt;$3.5b in sales is worth what as a stabilized business? Maybe more than $200m market cap on stock and $80m in bonds plus $65m bank debt?First of all, business isn't stabilized yet, and if it has to file BK first...as seems increasingly likely...current equity will be worth zero.Value of hypothetical stabilized BBBY business would depend not just on revenues, but on margins, plus growth prospects (if any). EG BBBY was doing $12B/year top line sales just three years ago...still wasn't making any money.Seems implausible to me that BBBY is going to come out of BK as an operationally profitable newco with $3.5B worth of revenue, but only $145M worth of debt, but if that happened, sure, at that point it \"should\" be worth a lot more than $200M. Lets see BBBY survive 90 days in Ch 11 first... <a data-mention-id=\"BBBY\" class=\"teditor-mention\" data-mention-name=\"3B家居\" href=\"https://ttm.financial/S/BBBY\">$3B家居(BBBY)$</a> <img src=\"https://community-static.tradeup.com/news/30b5207997005a735a1ae2e3ffd82b25\" tg-width=\"275\" tg-height=\"151\"></body></html>","text":"Multiplying \"zero\" by any number does still yield zero, but despite that, stock is still dilutable. I agree that doing it is still net positive for shareholders. >>$3.5b in sales is worth what as a stabilized business? Maybe more than $200m market cap on stock and $80m in bonds plus $65m bank debt? First of all, business isn't stabilized yet, and if it has to file BK first...as seems increasingly likely...current equity will be worth zero. Value of hypothetical stabilized BBBY business would depend not just on revenues, but on margins, plus growth prospects (if any). EG BBBY was doing $12B/year top line sales just three years ago...still wasn't making any money. Seems implausible to me that BBBY is going to come out of BK as an operationally profitable newco with $3.5B worth of revenue, but only $145M worth of debt, but if that happened, sure, at that point it \"should\" be worth a lot more than $200M. 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