Why Bed Bath & Beyond Just Collapsed Today
Shares of Bed Bath & Beyond (NASDAQ: BBBY) are cratering 41.2% at 11:40 a.m. ET on Friday after it was revealed billionaire investor Ryan Cohen had sold all of his stock and options in the home goods retailer.
Bed Bath & Beyond has been in the midst of a turnaround effort and Cohen seemed to want to help the retailer make a U-turn. His RC Ventures fund had amassed a near-10% stake in the company earlier this year by buying 7.7 million shares and 1.6 million options to buy more at a future date. But his complete exit from the stock pulled the rug out from under small retail investors who bought in on the hope he saw Bed Bath & Beyond's stock rising much further.
Cohen made it seem he was in for the long haul. In addition to buying a large chunk of the retailer, he also succeeded in getting three directors appointed to the board, and led the company's sale of various ancillary businesses and the ouster of its CEO.
Source Fool.com
