Koss recently doubled to $12.12, after skyrocketing 80% on Monday.
The trigger for all the short-covering: Andrew Left, managing partner of short seller Citron, said Friday that it was abandoning GameStop (GME) - Get GameStop Corp. Class A Report because of harassment from bulls.
On Tuesday, Koss benefited from a tweet written by the noted financial tweeter Andy Meade. “What short names will the Reddit Wall Street Bets army go after next? Here are the 3 stocks with short interest above 35% and a price below $10! (AMC) - Get AMC Entertainment Holdings, Inc. Class A Report, (CLVS) - Get Clovis Oncology, Inc. Report, KOSS”
Symbol AMC is movie-theater operator AMC Entertainment. CLVS is the Boulder, Colo., biopharma Clovis Oncology, working on cancer treatments.
Morningstar analyst Jaime Katz is skeptical about Bed Bath & Beyond.
“We do not believe Bed Bath & Beyond has established an economic moat, given the brand's limited pricing power, nonexistent consumer switching costs, and lack of cost advantages,” she wrote in a commentary Monday.
The company "competes in largely commoditized retail categories with ample domestic brick-and-mortar and online rivals," she said.
["The] lack of moat remains evident in the historical frequency and size of couponing, which underscores a consistently promotional environment and the price sensitivity of the consumer base, which has easy access to pricing comparisons through use of smartphones and other handheld devices.”
Further, “the company’s investor day in October 2020 established a new road map to alleviate customer pain points and revamp profitability,” Katz said. “While we appreciate the firm’s willingness to evolve, the success of the plan remains to be seen.”
Katz pegs fair value for Bed Bath at $22. The shares recently traded little changed at $30.65.