REITERATE: This Stock is a Loser, For Now

Apologies in advance for the break in the action of finding obscure data on the market and making appropriate calls. But, when I feel passionate about a specific stock, good or bad, just have to dish the 411. The name on the chopping block is Bed Bath & Beyond, which apparently is the sexy discretionary stock to own for 2013 (pretty scary how many peeps are overweight consumer discretionary). There is a mound of cash on the company's balance sheet, square footage growth potential exists across multiple concepts, and a runway of favorable year over year financial comparisons are in play (if you don't know what that gibberish means, Tweet me at https://twitter.com/BrianSozzi). Oh, and naturally, more people scoring keys to condos, co-ops, and houses is supposed to create a boost for the kitchen gadgets and sheets sold by Bed Bath.

Hey, I get the thesis, though caution it's misguided at present and that stock remains overvalued. Here are the only things to care about regarding the company today:

•Management has tried to blow off the fundamental impact to its business from coupons. I say hogwash, as the company is experiencing increased redemptions of its higher average coupon amounts. BTW, the coupon totters are shopping lower margin departments. Equation: MORE COUPON USAGE + MORE COUPON USAGE ON LOWER MARGIN PRODUCTS = NO GOOD FOR MARGINS

•With same-store saws decelerating since the February quarter of 2011, a shift in product mix, and ongoing expansion, Bed Bath's expense base is proving to be too fat. This dynamic will only change when same-store sales re-accelerate or gross margin begins to expand.