GameStop hit $480 during its peak in 2021 and I believe BBBY shares could soar to triple digits within the next few weeks. At the time, GME stock had a high short interest and caused an epic short squeeze that cost short sellers billions of dollars.Īccording to Ortex, BBBY has a short interest of 47%. GME stock traded around $4 then soared to as high as $480 in January 2021. Billionaires buy assets on sale when nobody else wants them akin to Warren Buffett's value investing strategy. No wonder Ryan Cohen bought a massive stake. I've never seen a company generate over $7 billion in annual revenue yet trade at such a low valuation. It's one of the lowest valuations across the entire retail industry and screams undervalued to the astute investor. GME trades at 15 times higher P/S ratio than BBBY. The best way to evaluate BBBY is to look at similar retail companies and compare their valuations.īBBY stock is significantly undervalued, possibly partly due to all the short selling recently. It's likely not too late to invest in BBBY stock if you truly stand behind Ryan Cohen. That means savvy investors can open a BBBY position at a cheaper price than Cohen did back in March 2022. His average BBBY cost basis is $15.34 yet BBBY shares are trading at a 16% discount as of August 15 2022. Purchase of January 2023 Call Option ($80 Exercise Price)* Purchase of January 2023 Call Option ($75 Exercise Price)* Purchase of January 2023 Call Option ($60 Exercise Price)* Here's a chart listing all of his stock & call options purchases: Transaction Ryan Cohen's BBBY Stock & Options Purchases The similarities are frightening but what I like the most is that Ryan Cohen is a long term investor and hasn't sold a single BBBY share or call option. BBBY has 75 million shares outstanding as of August 2022. GME had 76 million shares outstanding in January 2021 before the 2022 4 to 1 stock split.Many media pundits (Jim Cramer) are now attacking BBBY.
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