Jim Cramer Says Investors Deserve To Lose Money If They Bought Bed Bath & Beyond Stock At $5.75

Prominent market commentator Jim Cramer has said if investors had bought Bed Bath & Beyond Inc BBBY shares during its Monday rally, that may not result in the best of outcomes.

"If you bought $BBBY at $5.75 you actually deserve to lose money," Cramer tweeted.

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The company announced a proposed offering of convertible preferred stock and warrants through which it expects to raise approximately $225 million of gross proceeds along with an additional $800 million.

Bed Bath's share sale comes at a time when it is looking to avoid bankruptcy. It said in a release that it intends to use the net proceeds from the initial closing of the offering, along with $100 million to be drawn under its amended and upsized FILO Facility, to repay outstanding revolving loans under its ABL Facility, it said.

Price Action: Shares of the company closed 92.13% higher on Monday but lost 36.86% in the extended session. The stock is up over 261% in the last month's time.

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