Taking the squeeze off of Build-A-Bear
- Buy (close short position) BBW around 12.10
We are closing our trade on Build-A-Bear Workshop (BBW) after a 20% gain in one month. The stock quickly fell from our sell point at over 15 to the low-12s, where it has been holding steady for the past couple weeks.
Despite the barrage of negative retail news this year, BBW has shown some recent strength. While I am not ready to definitely call a bottom on this dying retail concept, the company’s valuation is now well below other specialty retail shops (as it should be), and BBW is still sitting on $17M in cash and a large stake in the promising Ridemakerz concept. Given these factors, we think it is prudent to take our gains.
Disclosure: SmartGuyStocks is no longer short BBW
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