Posted BY: Zero Hedge
Update 7:45pm: not everyone lost money in this post-modern, gammafied pump and dump which culminated with BBBY losing more than half of its value today: according to Bloomberg calculations Billionaire Ryan Cohen – who apparently was not rich enough – pocketed at least a $68 million profit from the sale of his stake in Bed Bath & Beyond, scoring a 56% gain on an investment he held for roughly seven months. Some math:
Cohen’s RC Ventures paid $121.2 million between mid-January and early March to acquire 7.78 million shares and options to purchase another 1.67 million shares, a regulatory filing shows. He unloaded all of them this week for a combined $189.3 million, according to a filing on Thursday after the US market close.
On the other hand, retail traders – especially those who were late to the trade – and who poured millions of dollars into the insolvent retailer’s stock, may be just starting to feel the pain.
According to Vanda research, retail traders poured a torrent of cash into Bed Bath & Beyond’s shares in recent weeks, even with the company’s financial situation collapsing. They bought $58.2 million of the stock on Wednesday, a day after snapping up a record $73.2 million. Net purchases over three weeks totaled $229.1 million an amount which just may wake the Suck Elon’s Cock commission from its perpetual hibernation.
The worst part for the Reddit crowd in this entire fiasco: It was billionaire Cohen’s very involvement in the stock that fueled their enthusiasm. The price at one point this week more than quadrupled from a recent low in July, with at least some pointing to a disclosure that showed the GameStop chairman still was holding onto his stake, which at that point exceeded 10% of the firm. It included call options that would only be in-the-money if the stock continued to soar.
It did not, because – drumroll – Cohen used that disclosure to spark a meltup in the stock which he then sold into.
The rest is now known.