Bed Bath & Beyond: Major Short Squeeze Potential

Struggling home-decor chain Bed Bath & Beyond saw its share price collapse by 49% on Tuesday after the company announced the successful completion of a $1.0B equity offering. Bed Bath & Beyond also announced a new round of store closures in a bid to lower its cash burn and focus on its restructuring. I believe the market is overreacting to the equity offering and, considering that the retailer is the second-most shorted stock on Wall Street with a short interest ratio of 47%, I believe there is the possibility of another major short squeeze. BBBY, however, is a very high risk stock and investors should be aware that they could lose all of their money if the retailer can't be turned around!