Keith added BBBY to the virtual portfolio on the short side into the close.
The money making call on BBBY was to go long because it looked expensive – for 2 years. But, now the top line is rolling and the Q4 sales/gross margin setup is unfavorable as the company continues to shift into lower margin merchandise. In addition, the quality of earnings is starting to deteriorate with SG&A cuts and a lower tax rate driving the recent beat.
