Wednesday, July 9, 2014

How One Hedge Fund's Cupcake Addiction Could Have Cost It As Much As A Million Dollars

Cannell Capital in April doubled its stake in Crumb Bake Shop to more than a million shares, despite nearly all signs pointing to the company’s ultimate demise. Earlier this week, the cupcake giant said it was closing all of its stores and going out of business.



Shannon Stapleton / Reuters


In fact, the NASDAQ had suspended trading of the stock at around 3 cents per share last week.


The Jackson, Wyo.-based hedge fund held about 8% of Crumbs' stock, according to a filing from April 16 that stated Cannell Capital had essentially doubled its position through two investment vehicles, including an offshore fund.


Back then, the stock was trading around $1.20 per share, down significantly from the roughly $3 per share mark where it had opened the year. Cannell's position at the time using the $1.20 per share price was worth around $1.2 million




View Entire List ›




via IFTTT

No comments:

Post a Comment