3 Reasons Bed Bath & Beyond's Accelerated Stock Buyback Plans Are Brilliant
Some investors clearly loved the news, given the stock's enormous rally in response to the announcement from home goods retailer Bed Bath & Beyond (NASDAQ: BBBY). On the other hand, a handful of pessimistic investors may doubt the wisdom of accelerating the company's $1 billion stock buyback program. That's a lot of money for a company still getting back on its feet, and a lot of money for a company also sitting on more than $1 billion worth of debt that could be dramatically reduced with those funds.
This is a case, however, where the seemingly less responsible decision to buy back outstanding shares of a company is actually a brilliant long-term move ... given its alternatives.
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Source Fool.com
