Dividend.com: RIM in Reverse

Analyst Defends Bed Bath & Beyond After Warning

Bed Bath & Beyond(BBBY Quote) announced late Tuesday that it is lowering its outlook for its fiscal third quarter.

The company said it now expects EPS in a range of 31 to 35 cents for the quarter ending Nov. 29. That's down from previous guidance of 41 cents to 47 cents a share the company gave in September. Same-store sales for the quarter declined about 5.6%, which was steeper than the company's guidance of relatively flat to low single-digit decline.

A Friedman Billings Ramsey analyst upgraded shares of the home decor company Wednesday, saying the company's low stock price coupled with the bankruptcy of one of its competitors makes it a more reasonable choice for investors.

The $19 price area seems to be where there is some technical support for BBBY shares. If that fails to hold, then the next area of support comes in the $13 range. We would not jump into shares based on the upgrade this morning. A low price does not mean the stock price can not go even lower. The bankruptcy of Linens & Things has been in the market for quite a while, so that catalyst is not new. We would rather wait for shares to stabilize before making any significant long-term bets.

Bed Bath & Beyond does not currently pay a dividend.

Research In Motion Shares Bounce, Despite Warning

Research In Motion(RIMM Quote) announced it is trimming its earnings and revenue guidance for the fiscal third quarter.

The company is blaming unfavorable foreign-exchange rates and a weak economy for the miss. The company sees EPS in a range of 81 cents to 83 cents a share, below a prior forecast of 89 cents to 97 cents. Revenue estimates are being lowered to a range of $2.75 billion to $2.78 billion, lower than its previous estimate of $2.95 billion to $3.1 billion.