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Bed Bath and Beyond files for bankruptcy

nytimes.com

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Re: Bed Bath and Beyond files for bankruptcy

#21

Post by fullshark »

humanlion87 wrote: post #8

I find the whole situation fascinating. Bed Bath continued to sell hundreds of millions of shares while they were preparing for bankruptcy and retail investors (or meme stock investors) continued to buy them. I assume Bed Bath did all the paperwork that is necessary (like calling out risks, that the raised capital will go to creditors first, etc) for such a stock sale. But it is clear they were doing it out of bad-fa…

What was the premise behind buying a stock for a company headed for bankruptcy?

Re: Bed Bath and Beyond files for bankruptcy

#22

Post by michaelsbradley »

I went to a nearby store in St. Louis about five months ago on a Saturday afternoon. It was sparkling clean (with one exception), shelves were stocked bottom to top and many items were marked with discounts. But there were only two other customers in the store, besides my s.o., while we were in there for around 30 minutes. The employees seemed to be wandering around with no clear tasks.

The exception to overall cleanliness was that a horrible smell came from the public mens restroom when I opened the door, and I found that one of the toilet stalls was thoroughly smeared (floor, stall walls, toilet itself) with feces. It didn't look fresh... bleh, so disgusting.

Anyway, after exiting the building I told my s.o. that surely BBBY is not long for bankruptcy.

Re: Bed Bath and Beyond files for bankruptcy

#24

Post by dilyevsky »

humanlion87 wrote: post #8

I find the whole situation fascinating. Bed Bath continued to sell hundreds of millions of shares while they were preparing for bankruptcy and retail investors (or meme stock investors) continued to buy them. I assume Bed Bath did all the paperwork that is necessary (like calling out risks, that the raised capital will go to creditors first, etc) for such a stock sale. But it is clear they were doing it out of bad-fa…

I think you’re wrongly assuming that the point of meme stock “investing” is to make money - quite the opposite actually

Re: Bed Bath and Beyond files for bankruptcy

#25

Post by dragontamer »

fullshark wrote: post #21
humanlion87 wrote: post #8

I find the whole situation fascinating. Bed Bath continued to sell hundreds of millions of shares while they were preparing for bankruptcy and retail investors (or meme stock investors) continued to buy them. I assume Bed Bath did all the paperwork that is necessary (like calling out risks, that the raised capital will go to creditors first, etc) for such a stock sale. But it is clear they were doing it out of bad-fa…

What was the premise behind buying a stock for a company headed for bankruptcy?

Meme stock traders thought they had another Hertz coming.

Hertz was going into bankruptcy in 2020, as the pandemic wrecked their finances. But then in 2021, in the middle of the bankruptcy, it turned out that their fleet of millions of used cars skyrocketed in price, saving the company from bankruptcy. Some other company purchased Hertz before the bankruptcy finished and Hertz shareholders then reaped the rewards as the stock climbed from pennies into $7.

Re: Bed Bath and Beyond files for bankruptcy

#26

Post by pram »

fullshark wrote: post #21
humanlion87 wrote: post #8

I find the whole situation fascinating. Bed Bath continued to sell hundreds of millions of shares while they were preparing for bankruptcy and retail investors (or meme stock investors) continued to buy them. I assume Bed Bath did all the paperwork that is necessary (like calling out risks, that the raised capital will go to creditors first, etc) for such a stock sale. But it is clear they were doing it out of bad-fa…

What was the premise behind buying a stock for a company headed for bankruptcy?

Profiting from a short squeeze. They basically load up on the shit stock like lottery tickets because they believe the price will eventually skyrocket. This is why they’re willing to delude themselves for months and years.

Re: Bed Bath and Beyond files for bankruptcy

#27

Post by jutrewag »

fullshark wrote: post #21
humanlion87 wrote: post #8

I find the whole situation fascinating. Bed Bath continued to sell hundreds of millions of shares while they were preparing for bankruptcy and retail investors (or meme stock investors) continued to buy them. I assume Bed Bath did all the paperwork that is necessary (like calling out risks, that the raised capital will go to creditors first, etc) for such a stock sale. But it is clear they were doing it out of bad-fa…

What was the premise behind buying a stock for a company headed for bankruptcy?

[dead]

Re: Bed Bath and Beyond files for bankruptcy

#28

Post by dragontamer »

aliljet wrote: post #3

This is surprisingly old news, but still somewhat interesting. I'm curious what led to this being posted today?

BBBY defaulted on its debt in December.

Defaulting doesn't mean bankruptcy however. The bondholders could legally start the bankruptcy process, but presumably the bondholders wanted to see how the stock-selling deal would pan out.

Now that the shares are under 20-cents and an additional 600+ million shares have been dumped to the market (from ~117 million in December 2022 to over 700-million today), its clear that the shareholders have been tapped out.

Re: Bed Bath and Beyond files for bankruptcy

#29

Post by beiller »

morkalork wrote: post #16
humanlion87 wrote: post #8

I find the whole situation fascinating. Bed Bath continued to sell hundreds of millions of shares while they were preparing for bankruptcy and retail investors (or meme stock investors) continued to buy them. I assume Bed Bath did all the paperwork that is necessary (like calling out risks, that the raised capital will go to creditors first, etc) for such a stock sale. But it is clear they were doing it out of bad-fa…

Bed Bath and Beyond the Pale

Bed Bloodbath and Beyond

Re: Bed Bath and Beyond files for bankruptcy

#30

Post by vkou »

fullshark wrote: post #21
humanlion87 wrote: post #8

I find the whole situation fascinating. Bed Bath continued to sell hundreds of millions of shares while they were preparing for bankruptcy and retail investors (or meme stock investors) continued to buy them. I assume Bed Bath did all the paperwork that is necessary (like calling out risks, that the raised capital will go to creditors first, etc) for such a stock sale. But it is clear they were doing it out of bad-fa…

What was the premise behind buying a stock for a company headed for bankruptcy?

Through a combination of divination by star signs and chicken entrails, reddit determined that the bankruptcy is fake, the business is actually amazing, and the only reason everyone thinks the company is doomed is because it is being shorted by bad people.

If they just buy and 'hodl', the shooters will get squeezed, and all the holders will make infinity dollars.

After buying mountains of stock, they've come up with insane theories for why this isn't a real bankruptcy, why some angel is going to come in at the eleventh hour to rescue their BBBY and how they will all get 1:1 shares in the angel's firm.

It's flat earth/rapture insanity, except these people are financially invested into their delusions.

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