Hope springs eternal. Bed Bath & Beyond has disappeared. Much of the company was bought by Overstock. The purchase is known as a “buyout of intellectual property.” This means Bed Bath is online, but not in any way that would help its shareholders. (These companies have the worst reputations.)
[in-text-ad]
Bed Bath had a second asset. BuyBuy Baby has been sold as well. It went to Dream On Me for $15 million. So, the Bed Bath cupboard is bare.
The shareholders who still own Bed Bath stock are fools. The company said as much in a recent SEC filing: “The Company expects that holders of shares of the Company’s common stock could experience a significant or complete loss on their investment, depending on the outcome of the Chapter 11 Cases.” Perhaps the “outcome” is the reason shareholders will hold the stock. However, they will walk away with only certificates that can be used as wallpaper.
The situation shows that people are willing to bet on nothing, hoping there is something. It would be akin to betting on a horse with a broken leg that somehow made it into the Kentucky Derby.
However, there is a way for a few people who own the stock to profit. They can get into the shares at 23 cents, hoping it will sell for 24 cents tomorrow.
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
