Mattress Tub & Past shares soar greater than 80% in after-hours buying and selling

Shoppers exit a Bed Bath & Beyond store in New York.

Michael Nagel | Bloomberg | Getty Images

Bed bath in addition Shares rose more than 70% in extended trading Tuesday after the retailer released a spate of news releases.

News the company announced included the launch of a digital marketplace that will sell third-party goods in addition to working with a grocery chain Kroger. Bed Bath & Beyond also said it The share buyback program was ahead of schedule and resulted in some management changes.

But the sharp post-market surge was likely fueled by what was known as a short squeeze, which forced hedge funds that had bet against the stock to buy back their stocks and reduce their losses.

Bed Bath & Beyond was among the most heavily shorted stocks in the country, accounting for 27% of the stocks available for trading. That’s the third-highest among the 1,500 largest US stocks, according to FactSet.

There was also a huge surge in mentions on Reddit after the bell, according to Sentiment Tracker Swaggy stocks. Bed Bath & Beyond was a meme favorite earlier this year, joining people like GameStop and AMC entertainmentbefore falling out of favor as the retail movement lost some of its momentum.

Bed Bath & Beyond shares rose 9.6% to $ 16.75 during regular trading on Tuesday. Shares rose dramatically in high volume after-hours trading.

Seymour Asset Management founder Tim Seymour told CNBCs “Quick money“That Bed Bath & Beyond shares were driven by the interest of newer and non-traditional investors.

“There are a number of these broken companies out there finding ways to reinvent themselves,” he said, referring to the volatile stock trading based on Reddit messaging boards. “Whether some of these companies are [reinventing themselves] or not, the capital markets allow them to get there and find out later. And that was one of the big stories of 2021. “

What Bed Bath & Beyond announced

After years of poor sales growth, Bed Bath & Beyond seeks to revitalize its business under CEO Mark Tritton. He has tried to streamline his business, close underperforming stores, and introduce private label products in hopes of offering buyers products they can only find in his stores.

The company said Tuesday it would create a digital marketplace to build a bigger presence on the internet. It gave only a few more details about when the platform would launch and how exactly it would work.

“Marketplace is another example of how we are further redefining our business model,” Tritton said in a statement. “We are developing new ways for long-term profitable growth so that we can organically expand our existing expertise in the home and baby categories.”

Separately it said Kroger – the country’s largest supermarket chain – will begin selling some of Bed Bath and Beyond’s household and baby products on their website and in selected stores as part of a pilot project from 2022.

A Kroger spokeswoman said the number of deals will be announced at a later date, along with more details.

Bed Bath & Beyond has also named Anu Gupta as Chief Growth Officer, a newly created position. She was previously the Chief Strategy and Transformation Officer of Bed Bath & Beyond.

The company also brought on Rafeh Masood as Chief Customer Officer, another newly created position. Masood was previously Chief Digital Officer and Interim Chief Brand Officer of Bed Bath & Beyond.

Both appointments are effective immediately and will report to Tritton.

Bed Bath & Beyond also said that it is expected to a $ 1 billion share buyback plan by the end of the 2021 financial year, two years earlier than planned.

Positive developments

Neil Saunders, Managing Director of GlobalData Retail, said the Bed Bath announcements were positive developments.

“Anything to do with the terms ‘marketplace’ and ‘digital sales’ and the like tends to have a very positive effect on inflation,” he said. However, he added that the company has lagged behind its competitors and is struggling to refresh its brand.

Saunders also said household goods sales are poised to slow down after spiking during the pandemic. The sticker shock inflation inflation consumers are taking is likely to put further pressure on the category, as is the desire to get back to spending money on travel and restaurants.

“I can see why they are increasing. Why they are increasing this order of magnitude is a bit of a mystery,” he said. “But a lot of things about Wall Street and stock movements are a mystery. Sometimes it’s irrational movements.”

Singapore’s ‘vaccinated journey lanes’ see Expedia flight searches soar

Singapore’s new “vaccinated itineraries” sparked a spate of flight inquiries as city-state residents seek to take advantage of the easing of international travel policies.

The search for cities within the so-called VTLs of Singapore has doubled – and in some cases almost tripled, according to the Expedia Group. It came after government officials announced the opening of new quarantine-free travel routes to countries in Europe, North America and Asia.

Facilitate international travel

Last week, Singapore announces quarantine-free travel with Canada, Denmark, France, Italy, the Netherlands, Spain, Great Britain and the USA from October 19th – as well South Korea from November 15th. The requirements include that travelers are vaccinated prior to entry and must take Covid-19 tests to ensure they do not become infected.

With the announcement, the island state’s VTL program, which currently includes Germany and Brunei, has been significantly expanded.

According to the news, the search interest of Singapore residents increased from week to week:

  • Seoul, South Korea – 180%
  • Vancouver, Canada – 160%
  • Frankfurt, Germany – 130%
  • London, United Kingdom – 120%
  • Los Angeles, United States – 80%

Expedia’s managing director for Asia said the searches mark a shift in consumer demand for international travel. In August, the most searched cities in Singapore were regional hotspots such as Japan, Hong Kong, Maldives and Taiwan.

Visitors walk through a terminal at Singapore Changi Airport on December 7, 2020.

Facebook Facebook logo Sign up on Facebook to connect with Roslan Rahman AFP | Getty Images

“The VTLs definitely have an impact on how people think about travel, where they want to go and how they plan their trip,” Choo Pin Ang told CNBC “Capital connection” Tuesday.

However, he added that he expects more traditional destinations to gain popularity as further easing is announced. Search queries in Singapore for year-end trips to VTL and non-VTL destinations from June to October have already tripled.

I don’t think we’re going to go back to regressive lockdowns and people who cannot travel

Amit saber whale

Founder and CEO, Reddoorz

This is good news for the ailing travel industry. From Wednesday, Singapore Airlines The stock price rose more than 9% during the week Shares of SATS – which provides ground and in-flight catering services at Singapore Changi Airport – increased by around 5%.

“It’s happy days again,” Amit Saberwal, founder and CEO of the Southeast Asian budget hotel chain RedDoorz, told CNBC on Wednesday. “Though it’s still in its infancy, I don’t think we’ll go back to a regressive lockdown and people won’t be able to travel … I think it’s our moment to shine again.”

Headwind remains

More quarantine-free itineraries are expected in the coming months, including some in the Asia-Pacific region, according to Singapore officials.

Australia, New Zealand and Japan should be there, as well as some “homeland” countries in Southeast Asia, Ang said.

Thailand on Monday announced plans to lift quarantine restrictions on vaccinated travelers from low-risk countries, including Singapore, from November.

“What will really determine whether VTLs can work is the strong economic ties between Singapore and these countries, vaccination rates and the progress that countries have made in containing Covid,” he said.

Nevertheless, headwinds remain. With travel restrictions evolving and the daily VTL arrivals in Singapore currently capped at 3,000, travelers should be “nimble” by making flexible bookings and purchasing travel insurance including Covid before departure.

– Shubhangi Goel contributed to this report.

Deep discounters like Greenback Tree get hit by soar provide chain prices

A man enters a Dollar Tree discount store in Garden City, New York.

Shannon Stapleton | Reuters

When a chartered ship for Money tree Arrived in China to load goods, a single crew member’s positive Covid-19 test forced the ship to turn back. The trip was delayed by two months.

CEO Mike Witynski shared this story and other shipping problems during a phone call on Thursday. He spoke bluntly about supply chain confusion and labor shortages. And he said they made it harder for the retailer, who sells most of their items for a dollar. And they are expected to continue into next year.

“The Dollar Tree banner is more freight sensitive than others in the industry,” he said.

Dollar Tree said Thursday that rising freight costs will push its earnings $ 1.50 to $ 1.60 per share – more than double the 60 cents forecast in May to 65 cents. Estimated earnings per share for the fiscal year will be between $ 5.40 and $ 5.60, which was lower than analysts expected.

The company’s shares closed 12.08% to $ 93.48 on Thursday.

Deep discounters are feeling the pain as Covid outbreaks and congested ports drive up the cost of shipping goods around the world. Dealers like Dick’s sporting goods, Best buy and Williams-Sonomareported higher gains this week. These companies found that fewer promotions did not dampen their customers’ willingness to buy. Some said they pay more to move goods quickly – such as flying goods on airplanes – and buyers are still buying.

However, at low cost retailers, buyers cannot afford to pay more or will walk away if the item doesn’t look like a bargain. This puts retailers in a bind as they have to decide when to raise prices and when to absorb higher costs.

“I would tell you that we were very careful in passing on prices because we know that our core customers find it difficult to afford many price increases.” Dollar general CEO Todd Vasos said on a conference call on Thursday.

Shares in the rival dollar store chain closed 3.77% to $ 225.90 on Thursday.

The off-price retailers – who also appeal to price-conscious shoppers – all fell on Thursday. Ross Stores, TJ Maxx and Burlington Stores closed by about 4%, 3% and 9%, respectively, early Thursday afternoon. Nordstrom, which also includes Nordstrom Rack, closed around 8%.

Some have detailed how to deal with the headwind.

Dollar General’s Vasos said the retailer is negotiating with vendors and has swapped some items for similar ones over the past few quarters to keep prices down.

Dollar Tree’s Witynski said the retailer had reserved its own spot on charter ships for the first time – including signing a three-year contract for a large ship. More U.S. goods were being purchased, so the Dollar Tree and Family Dollar stores were well stocked for the back-to-school season. And it prioritizes shipping containers depending on which goods are in season or in demand.

It will also continue to order seasonal purchases 30 days earlier than usual and monitor shipping availability in ports in China and the US

On the conference call, the company’s executives pointed to the predictions of industry experts that maritime shipping capacity will normalize no later than 2023 as more ships become available.

However, CFO Kevin Wampler admitted the rapidly changing environment during the pandemic – and said it made it difficult to estimate future freight costs.

“There could be another Covid outbreak,” he said. “There could be a lot of different things that could affect this. I think you have to keep in mind that it is probably the most dynamic thing we have ever seen in relation to this market. “

—CNBCs Robert Hum contributed to this report.

GameStop, AMC Leisure Shares Soar as Meme Inventory Rally Returns

The meme stocks are back.

Stocks of companies that upset the stock market and social media earlier this year are bouncing again this week, rewarding individual investors who have held on for months.

GameStop Corp.

GME 14.88%

,

AMC Entertainment Holdings Inc.,

AMC 19.25%

and

express Inc.

have all risen more than 36% for weeks, bringing every stock to levels not seen in weeks – or in some cases months -.

The sudden increase is reminiscent of the end of January, when individual investors join forces To drive stocks of companies once believed dead by Wall Street to unprecedented heights. This week’s rally – though tamer by comparison – has lit up Reddit forums, Discord chat rooms, and the like

Twitter

Feeds.

Much like previous rallies among meme stocks this yearNo unique or clear catalyst appeared to be driving this week’s rally. Analysts said the jump was likely due to a number of factors that have caused individual traders to pile up. With cryptocurrencies having lost much of their steam this monthMany unprofessional traders have come back on the stock market in search of profit. Platforms like Reddit’s WallStreetBets forum have kept the buzz, especially with meme stocks.

“We’ve seen things get out of hand for the last month or so, but it’s starting to pick up again,” said Viraj Patel, global macro strategist at Vanda Research.

Data from VandaTrack shows that individual investors invested more than $ 22 million in AMC on Tuesday, more than double the average daily net inflow of around $ 9 million into the stock of around $ 9 million in 2021. The company’s share price traded above $ 19 on Wednesday afternoon, causing it to potentially close above the highs reached during the January meme stock rush.

Part of the excitement is the belief of individual investors that meme stocks like AMC and GameStop can rise “to the moon” again. Many have spent months monitoring bearish positions in the stocks in hopes of repeating the frantic surge in stocks earlier this year. At its peak earlier this year, GameStop shares rose to $ 483 for the day from less than $ 20 at the start of the year. It was trading at $ 240 on Wednesday afternoon, up 15% for the day.

The January rally was caused in part by brief pressure. Investors bet against a company by borrowing and selling stocks and betting that they can later buy them back at a lower price. Brief pressure occurs when the price rises instead, forcing those with short positions to buy stocks to limit their losses, resulting in further price gains.

Prior to the January rally in meme stocks, hedge funds and other institutional investors were betting that stock prices for companies like GameStop would continue to fall. Instead, they were punished with heavy losses when meme stocks began to rise.

Individual investors on social media hope to find institutional investors back on the wrong side of the trade. According to S3 Partners, short interest in AMC is currently close to 21% of the stock’s free float, down from a 2021 low of nearly 11% in March, but up from the 28% hit earlier this year. GameStop’s short interest is around 20% compared to more than 140% in January.

The recent rise in stocks suggests that another short squeeze could be possible, especially if short sellers lose conviction or if their losses increase, said Ihor Dusaniwsky, head of predictive analytics at S3 Partners. As early as this week, investors who had bet that GameStop and AMC shares would fall would have seen bigger losses than normal, he said. Those short in GameStop lost at least $ 692 million on Tuesday and Wednesday, data from S3 Partners shows. Short sellers betting against AMC lost at least $ 482 million over the same period.

“Both stocks currently have very high short squeeze potential,” said Dusaniwsky.

However, some analysts doubt that social media momentum can boost stocks as much as it did earlier this year. Inflows into meme stocks like AMC also remain a fraction of what was previously seen.

“The crowd will be disappointed with the potential returns. Mania takes a lot of momentum, ”said Peter Atwater, associate professor of economics at the College of William & Mary. “You may try, but I would be surprised if you could create the kind of organic crowd behavior that you had before.”

Another force behind GameStop’s rise could also be speculation about the video game retailer’s foray into another area of ​​booming online speculation –the market for digital collectibles known as non-fungible tokensor NFTs. A subdomain for “GameStop NFT“Posted recently on the company’s website and sparked speculation that GameStop may have its own suite of digital assets that users can buy and sell. GameStop did not immediately return requests for comments.

So-called NFTs have become increasingly popular this year, especially for owning digital collectibles such as works of art, music and sporting highlights. These tokens accompany digital assets and live on the blockchain, a digital ledger that records who they belong to, who created them, and other vital information.

NFTs have become popular in video gaming as a way of allowing players to have buildings, avatars, or game accessories, rather than essentially leasing them from a platform. Players hope that the items they purchase can be used on many gaming platforms, rather than just one.

Write to Caitlin McCabe at caitlin.mccabe@wsj.com and Caitlin Ostroff caitlin.ostroff@wsj.com

Copyright © 2020 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

Japanese-style pubs report losses however gross sales at fast-food chains soar

The Japanese restaurant sector has reported mixed results on its recent earnings as the number of people hard-eating at izakaya pub operators declined due to the coronavirus pandemic, while takeaway demand boosted fast food chains.

Pub operator Watami Co. reported a loss of 11.59 billion yen ($ 105 million) on Friday for fiscal year ended March when the government asked restaurants to reduce opening hours for alcohol and anti-virus measures to close early in the course of the year.

“If the current situation continues, we expect red ink to reach 5 to 6 billion yen in fiscal 2021,” Watami chairman Miki Watanabe said in an online briefing, adding that the company had a capital injection of 12 billion yen from the state applies for Development Bank of Japan.

Colowide Co., which has restaurant and pub units, including Japanese set menu chain operator Ootoya Holdings Co., posted a record loss of 9.73 billion yen in fiscal 2020. It has decided to close 48 of its restaurants as part of its business review.

Among the fast food chain operators who benefited from the boom in the delivery and take-away groceries, KFC Holdings Japan Ltd.’s net profit increased. in fiscal 2020 by 82.9% to a record value of 2.81 billion yen.

McDonald’s Holdings Company (Japan) achieved record sales of ¥ 155.78 billion from January to March, an increase of 9.8% over the previous year.

At a time of both misinformation and too much information Quality journalism is more important than ever.
By signing up, you can help us find the right story.

SUBSCRIBE NOW

PHOTO GALLERY (CLICK TO ENLARGE)

UNICEF chief urges the world to assist India ‘now’ as Covid circumstances soar

UNICEF Executive Director Henrietta Fore told CNBC that she was “very concerned” about the current Covid-19 crisis in India and urged the world to send urgent aid to the country.

During World Immunization Week, Fore also said it was a “race to save lives” through vaccination, especially in some of the world’s poorest countries with “very fragile” health systems.

India is in the midst of a deadly second wave of the virus. On Saturday, daily coronavirus cases in the country went over 400,000 for the first time; The total number of cases in India has now exceeded 19 million and more than 215,000 people have died of Covid in the country.

“It is worrying for a number of reasons. First, is it a forerunner of what could happen in other countries, particularly in African countries, with much weaker health systems?” Fore said last week.

“It’s worrying because their healthcare system is overwhelmed. It’s the need for oxygen and therapeutics that we just haven’t seen in this pandemic in another country of this magnitude.”

People wearing face masks wait to receive a vaccine against coronavirus disease (COVID-19) at a vaccination center in Mumbai, India, on April 26, 2021.

Niharika Kulkarni | Reuters

Fore said both UNICEF and COVAX’s global immunization program had sent aid to the country, and help from other nations made a big difference. “But it is not enough because India is part of our supply chain. So this is where we source a lot of the vaccines and we now have to help India as the world,” she added.

UNICEF is the United Nations agency responsible for helping children around the world.

“Help us now”

As a result of the Covid-19 pandemic, the world has stopped paying attention to other routine vaccinations, warned Fore. Around 60 routine vaccination campaigns have been halted around the world as countries focus on fighting the pandemic.

To address these challenges while helping recovery from the global pandemic, the World Health Organization, UNICEF, Gavi, the Vaccine Alliance and other partners are supporting a global strategy known as the Immunization Agenda 2030. The initiative aims to save 50 million lives on “an ambitious new global strategy to maximize the life-saving effects of vaccines through stronger immunization systems”.

Fore said around half of the world’s vaccinations come from routine UNICEF vaccinations for children.

“Polio, measles, yellow fever … all of these are vaccines that children need, but they are also vaccines that adults need. So we are asking families to come to primary health clinics in their own communities, bring in and have their children If you are vaccinated against these childhood diseases, you will also get a Covid vaccine and we can save 50 million lives, “she said.

When asked if she had a message for world leaders today, Fore said, “Well, help us now.”

Henrietta H. Fore, Managing Director of UNICEF on July 05, 2018 in BERLIN, GERMANY.

Ute Grabowsky / Photo library via Getty Images

“We are concerned that the world is ignoring things like routine vaccinations. We cannot lose this population, our children, to an epidemic while we worry about Covid as a pandemic for our world. Please help us now,” she said added.

Despite the ongoing global pandemic, Fore said it was time to focus on such initiatives.

“People are now realizing that vaccines are important, that vaccines work, that they save lives, and right now we are in a race to save lives,” she said.

“So if we can save them through a routine vaccination program that targets everyone in a society, both routine vaccinations and Covid will help.”

Global investment

However, Fore told CNBC that it can be difficult to focus global investments on supporting the programs.

“The Covax facility called for $ 23 billion, which sounds like a huge amount, but when you look at global GDP and opportunities, it’s a very small number,” she said.

“So they realize that we as a world can afford this, and if we could bring out vaccines for children and adults in the years to come, we would be a world that would have more justice, more fairness and better health across the board.”