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Bed Bath & Beyond Soars On Accelerated Buyback

Nov. 02, 2021 7:20 PM ETBed Bath & Beyond Inc. (BBBYQ)12 Comments
Bill Maurer profile picture
Bill Maurer


  • Company to finish $1 billion plan by the end of fiscal year.
  • Share count to be reduced nicely yet again.
  • Shares surge more than 80% in Tuesday's after-hours session.

A Bed Bath and Beyond store in Buffalo, USA

JHVEPhoto/iStock Editorial via Getty Images

After the bell on Tuesday, shares of retailer Bed Bath & Beyond (BBBY) surged tremendously after the company announced a major update to its share repurchase program. With shares having plunged after

This article was written by

Bill Maurer profile picture
I am a market enthusiast and part-time trader. I started writing for Seeking Alpha in 2011, and it has been a tremendous opportunity and learning experience. I have been interested in the markets since elementary school, and hope to pursue a career in the investment management industry. I have been active in the markets for several years, and am primarily focused on long/short equities. I hold a Bachelor of Science Degree from Lehigh University, where I double majored in Finance and Accounting, with a minor in History. My major track focused on Investments and Financial Analysis. While at Lehigh, I was the Head Portfolio Manager of the Investment Management Group, a student group that manages three portfolios, one long/short and two long only. I have had two internships, one a summer internship at a large bank, and another helping to manage the Lehigh University Endowment for nearly a year. Disclaimer: Bill reminds investors to always do their own due diligence on any investment, and to consult their own financial adviser or representative when necessary. Any material provided is intended as general information only, and should not be considered or relied upon as a formal investment recommendation.

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Comments (12)

This will be inrestesting as the float is lower now. We will see major squeeze. Many don't understand how buyback and reduced float is affecting from squeeze aspect.
Steve Moore profile picture
Hopefully those who trade BBBY stock understand how to sell short in stages, not all at one time.

As an example, I’ll tell you what I did with CAR today as it spiked sharply.
I sold short only 10 shares at $310.00 as I wanted to keep plenty of dry powder handy.

Did another 10 at $358.45 and shorted yet another 10 at $398.45. I honestly felt it would peak around $400ish.

The stock blew through $500, which surprised me. But I shorted another 10 shares at $535.00.

Just before shorting that 4th lot the stock hit the daily high of $545.11. At that point I was down $5,684.30 on a short position of ONLY 30 shares! Man, this thing was wild!

The whole time I was convinced the stock would pullback sharply today, just like GME did when it hit an all-time high.

I then covered the entire 40 shares af $313.89 shortly after noon EST.

My point is not to brag. I’ve been clobbered a few times in my life- Rite Aid and Fitbit were both major bummers.

I have shorted BBBY already tonight and have a bunch of open orders to short more tomorrow. I think it is silly to think you can predict the tops and bottoms consistently. If you plan on buying or shorting in stages at varying prices, I think you stand a better chance.

Also, if it is a taxable (non-IRA) account, be careful about the 30-day wash sale rule. In essence, you can only have one tax deductible loss per stock for each 30 days. If, for instance, I covered my short at $375 per share, I’d have lost money on two lots, the ones I shorted at $310 and the ones I shorted at $358.45. So the IRS would have not allowed me to count one of the losses. So please get a basic understanding of the 30-day Wash Sale Rule.

Oh yeah, my profit after closing out the position was over $3,400. Not bad for a day’s work.
Just yesterday I made a desperate GTC to sell at 30. Can't believe it's already filled up at AH!

"Just yesterday I made a desperate GTC to sell at 30. Can't believe it's already filled up at AH!"

GTC orders are fun. They can be like listing your house on Zillow for 2 x what you paid for it last month.

Hey, you never know...
@AlphaJag I didn’t know they would fill regular session orders in the AH market. Good to know.
@T&ETrade on IB you can tick a box of outside trading hours, on GTC orders as well.
The retail industry has a history of buying back stock at high prices and then getter into financial problems a couple years later.
This might be one of the dumbest things I've heard in awhile.
Now they need to suspend it again. Otherwise, they are wasting shareholder money.
Bill Maurer profile picture

They aren't obligated to buy shares, tomorrow, for instance. You would think management would be smart here.
HootieTreads profile picture
@Bill Maurer I don't think they will repurchase much, if anything if this screams higher. I think they saw what happened with $CAR today and are basically playing off that. They were buying back shares in the $20s, so there is firepower there. Tomorrow should be a fun day to watch the markets!
They need to add meat to the end of their name for a rise to 120
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