Reading between the lines…

images4.jpegIs it just us cynics here at, or does something seem strange about the sequence of events at Build-A-Bear Workshop (BBW)? On Friday, the company put out this press release announcing the departure — that very day — of Chief Operating Bear Barry Erdos. Though neither the press release nor the accompanying separation agreement provided many clues, the fact that the announcement came on the same day as the departure is pretty unusual in and of itself. The fact that the separation agreement was pretty stripped down as these things go also seemed interesting.

Then, on Monday, there was this 13-G filed by Steve Cohen’s S.A.C. Capital Partners which disclosed a 5% stake or 1.89 million shares in the company. Though it’s hard to infer much from a 13-G, the sequence of events certainly seems worth paying attention to.

Is a 13-D in the future? S.A.C doesn’t tend to file a lot of those. But could this be similar to the situation at Inamed, where S.A.C. filed this 13-D in November 2005 to question a potential acquisition between Inamed (old ticker: IMDC) and that eventually led to a better deal for Inamed investors by Allergan (AGN). Could something similar be brewing here?

UPDATE: This 13-D was filed by Endowment Capital on Thursday afternoon. Endowment had first disclosed a stake in the company back on June 10, 2005. It’s not clear from today’s filing why the G became a D.


Meant to flag this story the other day about SEC Chairman Chris Cox using blogs to "gauge public sentiment". Hard to say if he’s one of the folks at the SEC who reads foontoted (the logs only tell you so much) regularly, but welcome to the blogosphere, Mr. Cox. I’m sure that readers — an intelligent and highly opinionated bunch — would love to hear directly from you. Especially about that change in accounting for stock options. Consider yourself invited.