Home NewsStock Market News “Diamond Hand” Cohen Sells BBBY Next GameStop? | Anue Juheng- US Stock Radar

“Diamond Hand” Cohen Sells BBBY Next GameStop? | Anue Juheng- US Stock Radar

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“Diamond Hand” Cohen Sells BBBY Next GameStop? | Anue Juheng- US Stock Radar


Are retail investors “diamond hands” or “paper hands”? Here comes the test for Bed Bath & Beyond (BBBY-US).

GameStop Chairman Ryan Cohen, who is regarded as the king of meme stocks, has been sought after by retail investors because of the meme stocks brought by GameStop last year. He recently sold all of his BBBY holdings, betraying the expectations of a large number of retail investors on the Reddit forums, but the sale may have been a wise decision for him.

Cohen’s investment firm RC Ventures, which initially bought BBBY at an average price of $15.34 per share, sold its BBBY holdings at between $18.68 and $29.22 per share on Tuesday and Wednesday, even selling call options, the news Shocking the market, BBBY fell 40.54% on Friday and fell more than 12% after the session to $9.69 per share.

Even for a billionaire, losing 2/3 of your money on a trade is never a happy thing.

The BBBY trend is fierce. From June 26 to August 17, the stock soared more than 400%. Any smart investor will take profits like Cohen and put it in the pocket. After all, a little hesitation may make the huge 6000 A million dollar gain turned into a huge loss.

Wells Fargo analyst Zachary Fadem pointed out on Thursday that BBBY’s second-quarter results may have been weaker due to lower store traffic, but its stock price has soared. BBBY even had to issue a statement warning that the company was taking steps to strengthen its balance sheet due to its frighteningly low liquidity.

“We believe it’s a foregone conclusion that BBBY’s share price is once again decoupled from economic reality,” Fadem wrote.

Turning around BBBY’s performance may prove to be more difficult than Cohen thought when he bought in. UBS analyst Michael Lasser pointed out that the current retail environment is not conducive to BBBY’s turnaround, as the consumer spending environment has become more volatile and categories that have seen a surge in demand over the past few years, such as barbecue grills, small appliances Wait, such conditions make it harder for BBBY to see a turnaround. He has a “sell” rating on BBBY.

Cohen’s sell-off made sense, but he broke a basic rule of thumb for meme-stock trading — never sell.

“Diamond Hands” was supposed to be under all the pressure, but Cohen isn’t, making other retail meme investors even more worried that if he’s going to sell BBBY, maybe at some point GameStop (GME-US) too Shares followed suit.

“Diamond hand” refers to the holder’s ability to hold the goods is very strong, “paper hand” means that the holder’s ability to hold the goods is weak, and a small fluctuation is scared and immediately shipped.

GameStop’s stock price fell by more than 8% on Friday, and finally the decline converged to 3.8%, closing at $36.49 per share, still remaining between $25 and $50, which had closed this year. If it falls below $25, other diamond players may be in danger. It will also feel hot.

However, with the market so volatile, what’s the point of buying and holding forever? In particular, holding stocks of companies with poor business quality and financial health, perhaps for meme stocks, there is no diamond hand at all.

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