BBBY is back…for now. It popped today after activist investor Ryan Cohen’s made a big bet on $BBBY.
The stock went up as much as 78.8% to $28.60 today and up another 11% after the market closed. Also, the trading was halted multiple times for volatility.
Cohen’s investment vehicle RC Ventures, which is the second largest investor in the company and has added three independent directors to its board, bought call options expiring in January 2023 on 1.67 million shares with a strike price ranging from $60 to $80.
Before you jump the gun and spend your precious money on this stock, let’s step back and think about this.
- When was the last time you went to Bed Bath and Beyond stores?
- Do you even know where they are? If so, did you end up buying anything?
- Have you ever been to Buybuy Baby stores?
I went to their stores not to long ago. Empty! Old! More expensive than Amazon ($AMZN)! Desperate that they allow customers to use all kinds of coupons to sell their products. Yes, old crummy stores that’s dying.
And ever saw how empty the parking lot is right in front of their stores? It’s really sad. Sales are collapsing and in July, they gave their CEO a boot.
My view, this is one greedy person making a huge bet hoping that others will follow and make some quick money. Nothing more than that. I could be wrong but at the current level and the dying business model, I would be a seller/shorter here. Then again, do your own DD if you are thinking about making any investment decisions.