Bed, Bath & Beyond (BBBY, $17.63) shares jump +25% on reports of activists planning to overthrow board
Three activist investors are reportedly seeking to replace the entire 12-member board of Bed, Bath & Beyond. The news led to the home goods retailer ‘s shares soaring +25% Tuesday.
Citing anonymous people familiar with the matter, CNBC reported that Legion Partners Asset Management, Macellum Advisors and Ancora Advisors are joining forces to use their combined 5% stake in Bed, Bath & Beyond to launch a proxy fight at the retail giant. The trio’s decision stems from their dissatisfaction with the company’s failure to catch up to consumers’ burgeoning appetite for digital shopping, coupled with its increasing costs in recent years (as indicated in the report).
However, the activist coalition is not aiming to sell the entire company. They would rather consider sales of underperforming assets such as Buy Buy Baby and decor retail chain Cost Plus World Market (according to the CNBC report citing another person familiar with the matter).
Analysts have been expecting Bed Bath & Beyond's revenue to decline -10.2% to $3.3 billion when it reports quarterly results on April 10. Earnings are expected to come in at $1.12 a share, compared to $1.48 a share in the year-ago period.
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Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
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