Even if share offering is truly the announcement, this should be a massive overreaction? via /r/wallstreetbets #stocks #wallstreetbets #investing


Even if share offering is truly the announcement, this should be a massive overreaction?

OK, share dilution is considered to be a bearish event, cuz theoretically it should reduce the value of your shares and your proportational ownership of the company. However, BBBY is a company that is trading 0.13 P/S ratio, which means that basically bankruptcy should be priced in. Any event that could prevent that should have a positive impact on their share price, including a share offering.

Do you think that the steep decline in pre-market is justified?

Submitted August 31, 2022 at 01:02PM by prettyboyv
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