The Battle of the Little Bighorn took place in June 1867 and resulted in the defeat of 700 U.S. troops. It is rare for Wall Street analysts to mention 19th century history, but Anthony Chukumba believes that is what we are seeing with Bed Bath & Beyond.
He told Yahoo Finance on Wednesday that it would end the same way as the Last Stand. We won't be talking about Bed Bath & Beyond in a year's time. Bed Bath and Beyond will not be around anymore. Son of the Morning Star is one of the many books and movies that portray Little Bighorn differently than it actually is.
Bed Bath & Beyond won't have gone out quietly if it goes bankrupt. Retail investors came together to discuss trades on the r/wallstreetbets on the back of the company becoming a meme stock.
After the initial surge in Bed Bath & Beyond's stock in 2021, activist investor and Chewy founder Ryan Cohen bought millions of shares and became the chairman of the board, raising hopes that he would turn it around.
Cohen's investment and active involvement boosted the shares of the home goods retailer. The company struggled to turn a profit despite the fact that some traders made millions in the process.
Bed Bath & Beyond lost $559 million in the fiscal year that ended in February and more than $700 million in the first and second quarters of this year.
Cohen made a huge profit when he sold his stake in the stock in August. Since their peak above $35 per share in 2021, the company's shares have plummeted.
After Cohen sold his shares, both he and Bed Bath & Beyond's CFO were accused of operating a "pump-and-dump scheme" that inflated the value of Bed Bath & Beyond stock.
The SEC is likely to look into Cohen's possible scheme to increase the stock price after he jumped to his death from the "Jenga" skyscraper.
Chukumba had a clear message.
We don't have to go through everything that has happened with Bed Bath and Beyond. They are just not relevant anymore.
Over the last year, Chukumba has been bearish on Bed Bath & Beyond. He warned in the earnings report that the company was burning through cash and inventories were growing.
He said in August that the stock was headed to $1 per share as the business needed to raise $500 million to pay off its debts. The holiday season reinforced his beliefs.
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