BBBY – Cheap stock with high short interest?
I was randomly looking at come back retailers lately to invest in.
I encountered BBBY (Bed bath & beyond) and initially found out it was a meme’er not long ago so that initially made me assume it was overvalued. When I actually looked at the financial data I was quite surprised… although the most recent quarter was a disappointment in general the last year seems very supportive of their 3-year transition.
They bought back about 25% of outstanding shares, have reduced debt load, and started closing shit stores and transitioning the stores they intend to keep into new and clean set-ups.
So I decide to go to one, and holy shit it went from a cluttered ball of crap like Kohl’s to like an Apple store (obviously not as good as Apple store) but it was a great experience.
Long story short- I bought 200 shares and sold some puts for $15 in Jan 2023 at a $5 premium. That means I’m making 33% of my money in a year for the risk I’m taking to buy 100 shares at $15 a year from now.
It still has some significant short positions in it as well, is this anything anyone else is looking at to invest in?
Submitted January 15, 2022 at 12:04AM by HaMEZSmiff
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