Bed Bath and Beyond stock (BBBY) tanks on news of layoffs and stock dilution.
Ryan Cohen, Chairman of the Board of Gamestop, and large investor in BBBY, has sold his entire position of BBBY, having possibly previously made false statements about his intentions.
The astonishing rise and fall of Bed Bath & Beyond’s stock price this month has put a spotlight on the investor Ryan Cohen, who through his social media savvy and his portfolio has become a baron of the meme-stock realm.
Cohen is the chair of GameStop, the video game retailer that was among the first stocks to lift off in early 2021 after its embrace by retail traders congregating on online message boards.
Cohen’s tweets and investments are dissected, copied and amplified on social media sites such as Reddit.
Shares in the homewares company had already been surging when on Monday, August 15, Cohen filed documents with the US Securities and Exchange Commission detailing a previous purchase in February and March of a large number of call options on the stock.
The disclosure helped push Bed Bath & Beyond shares up 30 per cent the next day. On Reddit, a forum member posted a meme with a message written below Cohen’s visage. “Howdy folks,” it read. “This is Ryan from the cockpit we’re expecting some turbulence just remain in your seats.”
There was turbulence. On Wednesday, August 17, Cohen disclosed that he was selling his entire stake, and by Thursday he had fully closed his position with a gain of about $60mn. The sales sparked the worst one-day pullback in the history of Bed Bath & Beyond stock.
So ... on Monday, he publicly announces a huge buy in BBBY call options. On Tuesday, he posts on social media, advertising what he did. On Wednesday, he dumps his entire stock position.
Actions of a scumbag.
“A lot of the interest in Bed Bath as a meme stock had to do with Ryan Cohen’s involvement.”
When Cohen tweeted a frog emoji with a picture of an ice-cream cone in February 2021, Reddit posts launched into theories about what it meant for GameStop shares.
A week after disclosing his stake in Bed Bath & Beyond, Cohen tweeted: “Short sellers are the dumb stormtroopers of the investing galaxy.” The following week the company’s shares climbed to their highest level for the year.
As for Bed Bath & Beyond: “The fundamentals have deteriorated significantly since he took his stake,” said Justin Kleber, an analyst at Baird. The company provided a “strategic update” to investors on Wednesday in which it said it had secured more than $500mn in new financing and also planned to cut jobs and close stores. That sent shares tumbling about 25 per cent shortly after Wall Street’s opening bell.
“The obligation that he has, though, is to speak truthfully about his intentions,” said enforcement lawyer and former SEC assistant director, Gregory Bruch. “If his intentions were different than his actions that is [a] basis to conduct an investigation.”
In a letter to the board when he took his Bed Bath & Beyond stake, Cohen said his investment was “maniacally focused on the long-term”.
Yeah ... riiiiiiight.
Wrong -- and a blatant LIE, which is why I don't like you guys.
You constantly lie.
(1) AUG 15 - He filed SEC document that he had previously purchased a ton of call options, in addition to his stock ownership, leading people to believe he was a strong bull. He told the company that his investment was "long term."
(2) AUG 16 - Price shot up, right after his public filing. He followed that up by posting a public message (social media) that everybody was in for a ride, fueling speculation even more.
(3) AUG 17 - Stock spiked up even more at the open, and he sold out his stock position. Stock sold off hard.
(4) AUG 18 - He completely closed out his position -- at a profit, due to the large spike, which he created with his public announcements, but did not mention that he was actually selling into the rally.
Stock has dropped more than 70% since the high, when he sold into the rally that he (and his co-conspirators) created.
He sold AFTER the run up, which HE caused.
If you call losing money "fun," then I guess you guys are having fun.
KEK
You are incorrect. It says in the filing how much they were sold for. If you have ability then you will be able to match the price and minute it was sold. You are even undereducated at reading filings.
It’s fun to watch undereducated shills trying so hard yet it’s too easy to tell. You failed again. You don’t get paid for failed post.
Hit the road if you don't like us. You must be a paid shill and a poorly paid one at that.