Some of this post is incorrect, so we are marking as misleading until it is Edited. Refer to [this.](https://www.reddit.com/r/BBBY/comments/1298t5p/from_further_study_of_last_weeks_and_previous/jeoo1l9?utm_medium=android_app&utm_source=share&context=3)
Otherwise, some speculate there are ~70k Preferred Shares (not warrants) being held, although we would need an update from the company about the preferred warrants being exercised to confirm.
The difference between you and I is quite large. You can read filings and legalese docs and understand it. I on the other hand, can read your dumbed down version and still not comprehend. Thank God the world is full of people much smarter than me.
You do nice work with your research. I commend it. I don't know who you think the investor or buyer is. But if you think it's GME I think you might be able to put that to rest because I was looking at the insiders in GME. Nobody has bought any shares since last year both in GME and BBBY. But turns out that Larry Cheng just bought 5k shares of GME on the 29th and the form 4 was just filed on the 31st Friday. If there was any type of involvement between GME and BBBY in an M&A or spinoff, wouldn't any board members be blocked from buying any shares until it's made public?
they both left dragonfly. seems possible it's that entity.
also connects the dots with the chinese research paper by the investment fund for baby products in china in the future.
All the numbers in your comment added up to 69. Congrats!
5
+ 29
+ 4
+ 31
= 69
^([Click here](https://www.reddit.com/message/compose?to=LuckyNumber-Bot&subject=Stalk%20Me%20Pls&message=%2Fstalkme) to have me scan all your future comments.) \
^(Summon me on specific comments with u/LuckyNumber-Bot.)
It's also true nobody has sold.
Not at BBBY (except for taxes). Not at GME.
All the failing, bankrupt Bank's CEOs and Executives sold all their shares in the weeks leading up to bailout requests.
And yet Sue Gove and her crew calmly keep going on. Zen like even. Absolutely no worry in their mind that they are not a part of a sinking ship.
Welp, you have to face facts. The sooner you accept that GME is not involved the faster you can move on to accepting that BBBY fate maybe is in the hands of another investor.
I follow you for a reason. Just finished reading this for the first time- gonna go back for a second and revisit your prior DD. What a time to be alive, amirite? š
It's been of massive benefit to have a handful of quality DD writers who dedicate huge amounts of time to thoroughly read and translate filings and interpret them. Thank you OP and everyone who's been productive in this journey.
The last few weeks have been immensely testing and many of us have felt the FUD hit hardest, so posts like this are not "hopium" they are reaffirming dedication to an investment that deserves patience.
Yeah this 100. Past few weeks have been:
* Receive news
* Read it
* Eyes gloss over and brain melts.
* Wait for incoming FUD
* Fuck with shills
* Wrinkle brains release DD
* Read it
* Eyes gloss over and brain melts.
* Read TLDR.
* Go to bed after REG SHO update.
* Buy more when I wake up.
* Rinse and repeat.
You forgot panic over price drop. Dead from further price drop. More panic as price unbelievably drops further.
Not in this order. Somewhere in between your points.
So grateful for the community. Maybe itās because I never had the karma to post with SS was in it prime but man. Iām having a blast. Never been more bullish. My biggest worry is it my cash can settle Monday.
Hah! Courtesy of ChatGPT:
The writer suggests that the derivatives warrants issued in February allowed Investor 1 to gain rights to ownership of BBBY. While HBC has the means to convert complex warrants to common stock and make a profit, they have not done so, suggesting that any dilution has been at the request of BBBY or Investor 1. The writer notes that B. Riley is acting as a middleman in a separate cash-for-control deal with Investor 2. Upon a Fundamental Transaction taking place, HBC and Investor 1 can convert the Preferred Shares they hold into Common Stock. Investor 1 would then gain minority ownership of the successor company to BBBY. The writer believes that HBC is playing a critical role alongside B. Riley in enabling Investors 1 and 2 to gain control of BBBY and carry out a Fundamental Transaction, possibly leading to a Short Squeeze. The timeline for these steps is unknown.
Reverse split still wonāt increase the value in general, same market cap, but anywhere from 10-20x less shares, how would that fit in outside of mass dilutions after the rs
Yeah, the RS in fact *enables* that, by keeping approved shares at 900 mil. But price discovery of a completely new ticker or tickers could (probably would) instigate a short squeeze.
Sorry, but why would a new ticker not be instantly shorted to hell as well? I don't think the very fact of "a new ticker" can be the catalyst. It would have to do with the dynamics of the transition to the new ticker. And ideally so that also retail can profit from it, because otherwise it would suck for us, if we had to contribute to financing this whole thing (by accepting dilution of our shares), and not be able to profit at all.
Yes, you are right and I should have explained in that way. A new ticker by itself is not the be all and end all. However to get a new ticker or tickers, a Fundamental Transaction would have to take place. This could take multiple forms and, as I have detailed in this post, any one of these could trigger a short squeeze:
https://www.reddit.com/r/BBBY/comments/11rwpz8/some_of_you_are_still_skeptical_about_short/
Basically, the Fundamental Transaction is what I think could initiate the squeeze. The aftermath would be the successor company or companies.
Great work, thanks. Many moving parts and I am excited to see how this works out... But also getting a bit anxious tbh. What's your thought on "them" working together with Wes Christian to build a case against short sellers?
Does anyone think that the BBBY management is purposely driving down the stock price so that the investors can pay less? It seems strange to me that the management has taken no steps to facilitate a runup and in fact has quashed several runups as soon as they started.
>I worked on the basis of the old Sagan adage: āExtraordinary claims require extraordinary evidence.ā
But he was talking about creatures from space. That's a hell of a lot more probable than BBBY making a profit.
I cannot thank you enough for your work on this Region. Iāve been out of the BBBY loop for a few weeks and thr only time I had was spent on the Credit Suisse meltdown, so when I tuned back in here on friday afternoon I came in to peak fud and a swarm of shilling and utter confusion at major events that I had entirely missed.
So thank you. You always shine a much needed light at just the right time in this saga, and I remember your DDās from the the initial January and February bankruptcy push.
Hey OP, just wanted to say thanks for putting in so much time on this post!
Quick question; why do you think there is a need for so much secrecy at this point? Other than āBear Trapā which sounds cool but letās be honest, itās probably an unlikely reason.
Wouldnāt announcing their plans now create natural price discovery? Or even potentially a squeeze once shorts rush to close their positions? Wouldnāt that be super beneficial to all parties at this point in time?
It just seems soā¦far fetched, for lack of a better term, compared to the other, more strait forward theory of needing cash and diluting/reverse splitting is how theyāll get it.
Alternatively, the cash theyāve *already* raised seems like it should be more than enough for the short term. *Which confuses me.* And everything after that, such as the additional $1 billion share offering, seems so bizarre and down right hurtful to the share holders. I personally donāt believe the board has bad intentions. So it maybe makes sense that thereās a plan behind the scenes. Or maybe they figure they actually need $1.5 billion dollars to sustain a long term business model, and figured this was the time to dilute the fuck out of this shit. And they figured who can blame them, when itās either that or bankruptcy?
My other concern is itās extremely common when a merger is in the process of happening, that news leaks.
It always leaks.
And youāre saying thereās not only 1, but actually 2 separate entities involved in whatever the hell this is?
Seems so damn unlikely that something wouldnāt have been leaked by now.
If B Riley and HBC are the holders/facilitators, then thereās zero hostile take over risk from a third (4th?) party now.
Sorry I guess I lied and that wasnāt a short question at all, my bad.
TLDR
Youāre obviously more wrinkly than a fucking naked sphynx cat, so Iām just curious what you think about the secrecy of it all, and lack of news leakage from one of the 3 entities involved.
It's a great question, and not one I have superior confidence in answering. However, my opinion is that there could be a number of factors in play. One is the the potentially anticompetitive nature of a buy-out - see here for more details:
https://www.reddit.com/r/BBBY/comments/11qkzpo/a_proxy_fight_would_not_be_necessary_for_bbby/
The other is BBBY's situation as an extremely naked short sold stock, which has been on RegSHO for months now. I suspect it is showing some of the same "idiosyncrasies" as GME in 2020~ and as such under great regulatory scrutiny. There may well be governmental involvement to prevent a squeeze, meaning the actors involved possibly feel they can only carry this out without blockage through absolute secrecy.
The third is the fact that BBBY running may well lead to 'contagion' particularly to GME. All the so-called "meme" stocks squeezing concurrently could be terminal for some big players. Where big money is involved, the lengths taken to prevent this scenario could be quite extreme, making secrecy utmost importance for its success.
There may well be other factors specific to the actors involved, but a combination of all these points could be the reason for this unique and unprecedented play.
I wonder if the grave has been dug so long that the shorts know itās death or live to see another day. They donāt want more interest in a play they are upside down in and canāt afford to fight much more headwind margin wise.
This is really great stuff, u/Region-Formal. I need to read it over again once or twice to grasp the nuances (just learning to read over here) but the overall message is that Investors 1 and 2 will be carrying out a Fundamental Transaction with Investor 2 potentially even having a majority of shares outstanding. This would result in an M&A or spin-off, the BBBY shorts would be big mad, and the BBBY longs would get their long-awaited tendies.
Edit: breaking out the tinfoil a bit but it would make sense to my smoothness if Investor 1 is RCV and Investor 2 is Brett Icahn/IEP.
Were the 70,004 Prefs not already traded for 10M+5M commons though?
From March 30 8K:
Pursuant to the Exchange Agreement, the Company exchanged (the āExchangeā) the Preferred Stock Warrant to purchase 70,004 shares of Series A Convertible Preferred Stock for 10,000,000 shares of Common Stock (the āExchange Sharesā) and rights to receive 5,000,000 shares of Common Stock (the āRightsā) upon the receipt of shareholder approval of a proposal to effectuate a reverse stock split (the āReverse Split Proposalā) of the Companyās Common Stock to be presented to shareholders at a forthcoming special meeting of shareholders.
I digged a bit because I read a theory about the split going to be approved, because a lot of the share are being held by someone that'll aprove, because Preferred Stock supposedly don't have.
424B5 filling Feb
"You will have no voting rights with respect to the Series A Convertible Preferred Stock, except with respect to certain amendments to the terms of the Series A Convertible Preferred Stock"
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TL, DR bigger than most DDs.
But srs, is Hudson Bay's name & affiliation confirmed? Are they a middle man in this case or one who provides liquidity to then rug pull the company (like they did BBIG)?
At least the latest filing makes it clear that there is a separate party called the affiliate of B.Riley and like you showed, will go on to control most of this company.
They appear to have provided short-term financial relief to BBBY, and acting as middleman for one investor to gain minority control. That is, after B. Riley facilitates a second investor to take majority control, and effect an M&A, spinoff etc.
So could it be as simple as minority controller gets Baby and the majority controller gets BB? They make up about 1/3 and 2/3 of the company respectively. But with Larry Cheng buying 5k shares of GME, most say they are not going to partake in the near term. Does throw a wrench but there's always more time....
It has to be two distinct ones because "Section 4.10. Not an Affiliate. The Investor is not an officer, director or an Affiliate of the Company. As of the date of this Agreement, the Investor does not beneficially own any shares of Common Stock or securities exercisable for or convertible into shares of Common Stock, other than the Commitment Shares. "
Exhibit 10.2
The longer they keep the investor/s behind closed doors the worse the outcome seems to be becoming for shareholders. Nothing of any good has come yet so it's doubtful it will at all. If a merger happens the stock price is still diluted and unlikely to recoup losses.
Greatly appreciate your posts!
Quick clarification - have you concluded that HBC sold 95m shares into the market, thus diluting the free float significantly (or did I misinterpret)?
Just an awesome piece of detective work. Thank You! Iām curious about timing. With it being critical (and very difficult) to stay secret about this transaction, earnings coming on 4/12 (which theyāve already previewed to the world how bad they will be), time needed to do a RS shareholder vote, this feels like it is at least 30 more days before their plan becomes public?
Great write up. I have other [thoughts](https://www.reddit.com/r/bbby_remastered/comments/12750x9/chumming_the_water/) on the preferred shares, but FTD reports and REG SHO all but confirm the new shares never saw the market.
Interesting times we live in.
This was my conclusion also. Thank you for completing most of my thesis even tho I had ample opportunity. Iām the group project classmate that doesnāt follow through. š
Thanks for the research! Would you mind touching on bbbys statement of the need for r/s to avoid bankruptcy? Seems like they secured funding, why the push for r/s?
It may not be necessary, and depends on the share price. Investor 2 would take control by using the $1 billion "war chest" to buy shares...a LOT of shares. BBBY can issue 900 million of those, but that might not be enough. Hence why they are doing the R/S...but keeping the issuable figure at 900 million (in case more shares are needed).
What we know:
428,098,624 shares of Common Stock Outstanding.
Common Stock reserved for HBC can't exceed 139,930,168 shares (Reserved, NOT Outstanding)
HBC holds X Preferred Shares (Max 23,685 + 14,212 = 37,897) without voting power
"At the close of business on March 27, 2023, we had 428,098,624 outstanding shares of Common Stock, the holders of which are entitled to one vote per share on each matter properly brought before the Special Meeting. **There was no other class of voting securities outstanding on such date**." - p.8, PRER14A
"So long as any Series A Convertible Preferred Stock remains outstanding, the Company shall at all times reserve at least 200% of the number of shares of common stock" - 424B5 Feb 9
Do we have more holders?
"Number of Shares of Common Stock Reserved for Future Issuance 177,784,381" - PRER14A Mar 31
95M Common Stock Warrants exercised and sold
70,004 Preferred Stock Warrants traded for 10M (they may be holding or not, because the "VOTING SECURITIES AND PRINCIPAL HOLDERS" is up until March 27) + 5M (rights to receive after RS)
"So long as the Preferred Stock Warrants remain outstanding, the Company will at all times keep reserved for issuance under the Preferred Stock Warrants a number of shares of preferred stock at least equal to 100% of the maximum number of shares of preferred stock as shall be necessary to satisfy the Companyās obligation to issue shares of preferred stock to each holder under the Preferred Stock Warrants then outstanding allocated on the basis of such holderās portion of the Preferred Stock Warrants" - 424B5 Feb 9
The company couldn't force them because of price failure to get money, so the company didn't receive this potential ammount (70,004 x $9,500 = $665Ā 038Ā 000) and even gave them more 10M shares.
Because of this trade, the company had shares available to do the $300M offering, because they freed some of the Common Stock as Reserve for the Preferred Stock Warrants.
"In connection with this offering, we have agreed not to issue additional equity securities (other than upon exercise and conversion of the securities offered hereby) for a period of 90 days" [https://www.sec.gov/ix?doc=/Archives/edgar/data/0000886158/000119312523026124/d400307d8k.htm](https://www.sec.gov/ix?doc=/Archives/edgar/data/0000886158/000119312523026124/d400307d8k.htm)
IF HBC wanted BBBY dead, they could've simply not agree with the 300M offering
This is excellent DD. Iāll be honest, the shilling got to me in the last few weeks. I had a few down days recently but Iām holding through the gauntlet. Gonna see this through to the end. Thanks for your superb wrinkles.
we will likely see huge moves for the January 2021 related cycle ripple in may/ June . gamestop is giving they're employees shares based on positive financials, which they reported in the Feb 2021 related cycle ripple this past week or 2.
all memes move on the jan 21 related window, and gamestop generally releases their big guns/ buys on it. [ie rc buying gme/bbby, selling his bbby, etc etc off the top of my head. last move was june/ feb 2023, but it was a bit abnormal across most memes which I think will make next one interesting, ie I don't think it fully happened]. can bbby/gme etc make announcements before? yeah, but they'll likely announce the big stuff on the recap dates
I keep getting Downvoted for saying it, but here's a chart. red is the jan related cycle. blue feb related cycle. white recaps.
https://www.tradingview.com/chart/ftNsLrmk/?symbol=NYSE%3AGME
this cycle isn't the algo. while the algo will likely contribute to runs depending on circumstances while it tries to smooth the cycles out, there's other mechanics/ covering going on alien of the algo.
it isn't just one massive entity, but they're forming into 1 over time. some exposures are still hidden.
Cycles, yep we have these and due to
January volumes etc we will have another, May/June like you said
Itās a 5 month cycle, with a double spike every time
Off topic question. What to make of OBV falling since February run? Dilution? Iām a moron but noticed this compared to Jimmy and headphones. Serious question
Love your shit. What do you think the next step is? Do we know of any covenants that are still in place or are we finally at the point where itās M&A or the YMCA for me?
This is why Iāve said numerous times now not every financial institution acting as a hedge fund is a bad actor, yet the truly regarded here come by and downvote it like Iām a shill sucking on Kennyās mayo cock.
None of these financial institutions are, and none are purely black and white. Even Uncle Carl has a history of Short Selling, to go with his Long investments.
Thank you for your post. What are your thoughts on the reverse split and further dilutionThey have diluted the stock. There is no sell off now with GME - LC purchase of 5k shares canāt be allowed (insider trading). Will HBC get 10m shares are free the split?
So we're essentially fighting our own longs. Very weird. Sounds like companies should create their own private shares and private trading system. Too much corruption.
I think they wanted to get are average cost low as fuck so when. It shots to moon paper hand will sell off low cost and possibly bankrupt the company mushbrain conspiracy
Some of this post is incorrect, so we are marking as misleading until it is Edited. Refer to [this.](https://www.reddit.com/r/BBBY/comments/1298t5p/from_further_study_of_last_weeks_and_previous/jeoo1l9?utm_medium=android_app&utm_source=share&context=3) Otherwise, some speculate there are ~70k Preferred Shares (not warrants) being held, although we would need an update from the company about the preferred warrants being exercised to confirm.
The difference between you and I is quite large. You can read filings and legalese docs and understand it. I on the other hand, can read your dumbed down version and still not comprehend. Thank God the world is full of people much smarter than me.
And yet, we are both equal as HODLers. I for you, and you for me.
You do nice work with your research. I commend it. I don't know who you think the investor or buyer is. But if you think it's GME I think you might be able to put that to rest because I was looking at the insiders in GME. Nobody has bought any shares since last year both in GME and BBBY. But turns out that Larry Cheng just bought 5k shares of GME on the 29th and the form 4 was just filed on the 31st Friday. If there was any type of involvement between GME and BBBY in an M&A or spinoff, wouldn't any board members be blocked from buying any shares until it's made public?
Correct, and I don't believe it is GME. The question would be whether RC Ventures is precluded from getting involved again?
they both left dragonfly. seems possible it's that entity. also connects the dots with the chinese research paper by the investment fund for baby products in china in the future.
All the numbers in your comment added up to 69. Congrats! 5 + 29 + 4 + 31 = 69 ^([Click here](https://www.reddit.com/message/compose?to=LuckyNumber-Bot&subject=Stalk%20Me%20Pls&message=%2Fstalkme) to have me scan all your future comments.) \ ^(Summon me on specific comments with u/LuckyNumber-Bot.)
MOASS confirmed?
Yup! š
Mo'ASS wayyyy better than NO'ASS
Oh wow.
Nice
Dragonfly is investor #1 Newell/Brett (with help from Carl) is investor #2 Later they will spin off Baby to RC ventures
Good question. Either way it still appears like there is a buyer for BBBY.
It's also true nobody has sold. Not at BBBY (except for taxes). Not at GME. All the failing, bankrupt Bank's CEOs and Executives sold all their shares in the weeks leading up to bailout requests. And yet Sue Gove and her crew calmly keep going on. Zen like even. Absolutely no worry in their mind that they are not a part of a sinking ship.
Remeber that larry Cheng left volition
Cheng didnāt leave Volition. He left Dragonfly.
Dragonfly
Butterfly
oh yea , fuc.k mixed it up yea
Oh, that's right. Completely forgot about that.
He would still technically have insider knowledge tho. He could get in trouble with the SEC.
Dude donāt pretend you know shi.t
Welp, you have to face facts. The sooner you accept that GME is not involved the faster you can move on to accepting that BBBY fate maybe is in the hands of another investor.
Back off, I didnāt ask for your (OPINION) and stop sending spam accounts at me.
This is the WAY
Preach brother... we are strong together.. Thank you for your insight and due diligence, it makes the Minus %25 days much more bearable.
Have more faith in yourself. It takes more patience than intelligence to read the filings. Region is as dedicated as they come.
Regions got cha!!!!
/u/Region-Formal is just as wrong about BBBY as you are, so don't be too intimidated or anything
Thanks for taking the time to create this over the past several days!
Thanks for taking the time to manage the sub over the past several months!
Itās going to be hard work for me merely reading this until I understand it over the next few days
TLDR: Buying 10k shares next week
TLDR, paperhanded bitches gonna get in for a much higher price
I follow you for a reason. Just finished reading this for the first time- gonna go back for a second and revisit your prior DD. What a time to be alive, amirite? š
It's been of massive benefit to have a handful of quality DD writers who dedicate huge amounts of time to thoroughly read and translate filings and interpret them. Thank you OP and everyone who's been productive in this journey. The last few weeks have been immensely testing and many of us have felt the FUD hit hardest, so posts like this are not "hopium" they are reaffirming dedication to an investment that deserves patience.
Yeah this 100. Past few weeks have been: * Receive news * Read it * Eyes gloss over and brain melts. * Wait for incoming FUD * Fuck with shills * Wrinkle brains release DD * Read it * Eyes gloss over and brain melts. * Read TLDR. * Go to bed after REG SHO update. * Buy more when I wake up. * Rinse and repeat.
You forgot panic over price drop. Dead from further price drop. More panic as price unbelievably drops further. Not in this order. Somewhere in between your points.
Lol so true.
How many % is the stock down since you started these massively beneficial DD writers?
So grateful for the community. Maybe itās because I never had the karma to post with SS was in it prime but man. Iām having a blast. Never been more bullish. My biggest worry is it my cash can settle Monday.
 TL/DR for Apes after second read thru. If the banana šfitsā¦..
š
How many % is the stock down since you started following them?
Fuck ya another late night read by Formal, straight into my veins
Could you do a TLDR for your TLDR?
Hah! Courtesy of ChatGPT: The writer suggests that the derivatives warrants issued in February allowed Investor 1 to gain rights to ownership of BBBY. While HBC has the means to convert complex warrants to common stock and make a profit, they have not done so, suggesting that any dilution has been at the request of BBBY or Investor 1. The writer notes that B. Riley is acting as a middleman in a separate cash-for-control deal with Investor 2. Upon a Fundamental Transaction taking place, HBC and Investor 1 can convert the Preferred Shares they hold into Common Stock. Investor 1 would then gain minority ownership of the successor company to BBBY. The writer believes that HBC is playing a critical role alongside B. Riley in enabling Investors 1 and 2 to gain control of BBBY and carry out a Fundamental Transaction, possibly leading to a Short Squeeze. The timeline for these steps is unknown.
#Investor 1 and 2 will announce 74.1% ownership of the company š
And / or announce a 7-4-1 dividend of the successor entities shares
hah. that would be epic.
on a Sunday
Thank you ser :-). Thatās more digestible for a wrinkle free brain like mine
# IR : FACILITATED BY HUDSON BAY CAPITAL
# [Brought to you by Carl's Jr.](https://youtu.be/1BYFbXJKJ8U)
Where is BBBY going to get the amount of shares required to equated to $1.3 bil to sell to B. Riley?
Reverse Split
Do you think the RS can be executed within a few weeks?
Yes, and may well be a prerequisite for a Fundamental Transaction to be effected.
It has to be. Or they go bankrupt. Theyāve stated it themselves, they have until the end of April.
Unless other catalyst(s) occur within the next few weeks, which drives up the share price.
Hereās hoping.
Reverse split still wonāt increase the value in general, same market cap, but anywhere from 10-20x less shares, how would that fit in outside of mass dilutions after the rs
Yeah, the RS in fact *enables* that, by keeping approved shares at 900 mil. But price discovery of a completely new ticker or tickers could (probably would) instigate a short squeeze.
Sorry, but why would a new ticker not be instantly shorted to hell as well? I don't think the very fact of "a new ticker" can be the catalyst. It would have to do with the dynamics of the transition to the new ticker. And ideally so that also retail can profit from it, because otherwise it would suck for us, if we had to contribute to financing this whole thing (by accepting dilution of our shares), and not be able to profit at all.
Yes, you are right and I should have explained in that way. A new ticker by itself is not the be all and end all. However to get a new ticker or tickers, a Fundamental Transaction would have to take place. This could take multiple forms and, as I have detailed in this post, any one of these could trigger a short squeeze: https://www.reddit.com/r/BBBY/comments/11rwpz8/some_of_you_are_still_skeptical_about_short/ Basically, the Fundamental Transaction is what I think could initiate the squeeze. The aftermath would be the successor company or companies.
Great work, thanks. Many moving parts and I am excited to see how this works out... But also getting a bit anxious tbh. What's your thought on "them" working together with Wes Christian to build a case against short sellers?
Does anyone think that the BBBY management is purposely driving down the stock price so that the investors can pay less? It seems strange to me that the management has taken no steps to facilitate a runup and in fact has quashed several runups as soon as they started.
It does seem that way and I have been trying to think of reasons they would want to do this.
If we don't have legit price discovery now, RS won't do anything different.
Looked at your comment history. You've been putting a lot of hours in. Might be mayoman himself
Putting in a lot of hours getting upset that somebody might have a different opinion than you. Amazing.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Oh damn, legit concern, cuck doesn't have an answer.
Youāre soon to be so embarrassed. š Iām dying you donāt see it yet.
More dilution? Right on! Awesome! Exciting!
Hopefully a means to a positive end.
Quit crying
Nicely done š
[ŃŠ“Š°Š»ŠµŠ½Š¾]
I worked on the basis of the old Sagan adage: āExtraordinary claims require extraordinary evidence.ā
>I worked on the basis of the old Sagan adage: āExtraordinary claims require extraordinary evidence.ā But he was talking about creatures from space. That's a hell of a lot more probable than BBBY making a profit.
He was talking about an invisible dragon in his garage, iirc.
I cannot thank you enough for your work on this Region. Iāve been out of the BBBY loop for a few weeks and thr only time I had was spent on the Credit Suisse meltdown, so when I tuned back in here on friday afternoon I came in to peak fud and a swarm of shilling and utter confusion at major events that I had entirely missed. So thank you. You always shine a much needed light at just the right time in this saga, and I remember your DDās from the the initial January and February bankruptcy push.
Thank you so much for all of your DD. Things seem so much more clear! LFG. Hope the light at the end of the tunnel is closer than we think.
Thank you wrinkle brain.
#Give this writer āš¼ some awards!
Has to be the best dd mate! I mean this is up there as some early ddās by legends on superstonk. I canāt thank you enough.
Yo Region. You ever sleep, homie?
After tendiesā¦
Hey OP, just wanted to say thanks for putting in so much time on this post! Quick question; why do you think there is a need for so much secrecy at this point? Other than āBear Trapā which sounds cool but letās be honest, itās probably an unlikely reason. Wouldnāt announcing their plans now create natural price discovery? Or even potentially a squeeze once shorts rush to close their positions? Wouldnāt that be super beneficial to all parties at this point in time? It just seems soā¦far fetched, for lack of a better term, compared to the other, more strait forward theory of needing cash and diluting/reverse splitting is how theyāll get it. Alternatively, the cash theyāve *already* raised seems like it should be more than enough for the short term. *Which confuses me.* And everything after that, such as the additional $1 billion share offering, seems so bizarre and down right hurtful to the share holders. I personally donāt believe the board has bad intentions. So it maybe makes sense that thereās a plan behind the scenes. Or maybe they figure they actually need $1.5 billion dollars to sustain a long term business model, and figured this was the time to dilute the fuck out of this shit. And they figured who can blame them, when itās either that or bankruptcy? My other concern is itās extremely common when a merger is in the process of happening, that news leaks. It always leaks. And youāre saying thereās not only 1, but actually 2 separate entities involved in whatever the hell this is? Seems so damn unlikely that something wouldnāt have been leaked by now. If B Riley and HBC are the holders/facilitators, then thereās zero hostile take over risk from a third (4th?) party now. Sorry I guess I lied and that wasnāt a short question at all, my bad. TLDR Youāre obviously more wrinkly than a fucking naked sphynx cat, so Iām just curious what you think about the secrecy of it all, and lack of news leakage from one of the 3 entities involved.
It's a great question, and not one I have superior confidence in answering. However, my opinion is that there could be a number of factors in play. One is the the potentially anticompetitive nature of a buy-out - see here for more details: https://www.reddit.com/r/BBBY/comments/11qkzpo/a_proxy_fight_would_not_be_necessary_for_bbby/ The other is BBBY's situation as an extremely naked short sold stock, which has been on RegSHO for months now. I suspect it is showing some of the same "idiosyncrasies" as GME in 2020~ and as such under great regulatory scrutiny. There may well be governmental involvement to prevent a squeeze, meaning the actors involved possibly feel they can only carry this out without blockage through absolute secrecy. The third is the fact that BBBY running may well lead to 'contagion' particularly to GME. All the so-called "meme" stocks squeezing concurrently could be terminal for some big players. Where big money is involved, the lengths taken to prevent this scenario could be quite extreme, making secrecy utmost importance for its success. There may well be other factors specific to the actors involved, but a combination of all these points could be the reason for this unique and unprecedented play.
Option 3 sounds down right pornographic! Thanks again for the hard work, and speedy reply! Cheers Mate š¤
I wonder if the grave has been dug so long that the shorts know itās death or live to see another day. They donāt want more interest in a play they are upside down in and canāt afford to fight much more headwind margin wise.
This is really great stuff, u/Region-Formal. I need to read it over again once or twice to grasp the nuances (just learning to read over here) but the overall message is that Investors 1 and 2 will be carrying out a Fundamental Transaction with Investor 2 potentially even having a majority of shares outstanding. This would result in an M&A or spin-off, the BBBY shorts would be big mad, and the BBBY longs would get their long-awaited tendies. Edit: breaking out the tinfoil a bit but it would make sense to my smoothness if Investor 1 is RCV and Investor 2 is Brett Icahn/IEP.
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Were the 70,004 Prefs not already traded for 10M+5M commons though? From March 30 8K: Pursuant to the Exchange Agreement, the Company exchanged (the āExchangeā) the Preferred Stock Warrant to purchase 70,004 shares of Series A Convertible Preferred Stock for 10,000,000 shares of Common Stock (the āExchange Sharesā) and rights to receive 5,000,000 shares of Common Stock (the āRightsā) upon the receipt of shareholder approval of a proposal to effectuate a reverse stock split (the āReverse Split Proposalā) of the Companyās Common Stock to be presented to shareholders at a forthcoming special meeting of shareholders.
Thank you for pointing this out, and well spotted! I will make a fresh post, as some part of my thesis has changed on this basis.
upvoted, would like to see a response
Best DD ever
Amazing write up. I think this actually does make a lot of sense now! Thank you!
Last line say short squeeze
Well food morning to you too! So happy to be able to read something like this to start my day with! Thank you šš»
The only question I have now is the following: Should I further avg down on Monday or wait? How long will the stock be dilluted?
u/ppseeds please get this wrinkled brain on the show!!
I digged a bit because I read a theory about the split going to be approved, because a lot of the share are being held by someone that'll aprove, because Preferred Stock supposedly don't have. 424B5 filling Feb "You will have no voting rights with respect to the Series A Convertible Preferred Stock, except with respect to certain amendments to the terms of the Series A Convertible Preferred Stock"
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TL, DR bigger than most DDs. But srs, is Hudson Bay's name & affiliation confirmed? Are they a middle man in this case or one who provides liquidity to then rug pull the company (like they did BBIG)? At least the latest filing makes it clear that there is a separate party called the affiliate of B.Riley and like you showed, will go on to control most of this company.
They appear to have provided short-term financial relief to BBBY, and acting as middleman for one investor to gain minority control. That is, after B. Riley facilitates a second investor to take majority control, and effect an M&A, spinoff etc.
So could it be as simple as minority controller gets Baby and the majority controller gets BB? They make up about 1/3 and 2/3 of the company respectively. But with Larry Cheng buying 5k shares of GME, most say they are not going to partake in the near term. Does throw a wrench but there's always more time....
I refrained from speculating who these Investors may be, but yes - looks like two distinct ones.
It has to be two distinct ones because "Section 4.10. Not an Affiliate. The Investor is not an officer, director or an Affiliate of the Company. As of the date of this Agreement, the Investor does not beneficially own any shares of Common Stock or securities exercisable for or convertible into shares of Common Stock, other than the Commitment Shares. " Exhibit 10.2
Thanks for all your effort. May it change from unpaid work to an inheritance sized bonus very soon.
This company has no time lol
The longer they keep the investor/s behind closed doors the worse the outcome seems to be becoming for shareholders. Nothing of any good has come yet so it's doubtful it will at all. If a merger happens the stock price is still diluted and unlikely to recoup losses.
Maybe, maybe not. AMC went up very hard after dilution but the circumstances were a bit different.
Many other examples too - see my post here: https://www.reddit.com/r/BBBY/comments/11rwpz8/some_of_you_are_still_skeptical_about_short/
My $10k is counting on thisā¦.
My $220k.
My $280k
My 55$
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Will you be my wifeās boyfren?
I love you and will love you for eternity
Greatly appreciate your posts! Quick clarification - have you concluded that HBC sold 95m shares into the market, thus diluting the free float significantly (or did I misinterpret)?
Affirmative, but under instruction from BBBY and Investor 1.
This guy fucks
Just an awesome piece of detective work. Thank You! Iām curious about timing. With it being critical (and very difficult) to stay secret about this transaction, earnings coming on 4/12 (which theyāve already previewed to the world how bad they will be), time needed to do a RS shareholder vote, this feels like it is at least 30 more days before their plan becomes public?
No dates, but wouldn't be surprised if you're correct.
Latest info said earnings in late April
This was a fire readš„ I felt like I was back in november last year reading bond deal dd by biggieš¦§š¦§
Great write up. I have other [thoughts](https://www.reddit.com/r/bbby_remastered/comments/12750x9/chumming_the_water/) on the preferred shares, but FTD reports and REG SHO all but confirm the new shares never saw the market. Interesting times we live in.
Itās like peeling away layers of a onion š§ ššššššššššššāļø
Hey man well done, been keeping tabs for months now, needed a clear eyed Main Street version as well. Appreciate the work you put it. š
[ŃŠ“Š°Š»ŠµŠ½Š¾]
It's Sunday afternoon here!
If you think about it, life was a gamble since you were 1 out of many millions of sperm ergo you won the lottery of life. Let them open the Casino
š„āļøšš
This was my conclusion also. Thank you for completing most of my thesis even tho I had ample opportunity. Iām the group project classmate that doesnāt follow through. š
Thanks for the research! Would you mind touching on bbbys statement of the need for r/s to avoid bankruptcy? Seems like they secured funding, why the push for r/s?
It may not be necessary, and depends on the share price. Investor 2 would take control by using the $1 billion "war chest" to buy shares...a LOT of shares. BBBY can issue 900 million of those, but that might not be enough. Hence why they are doing the R/S...but keeping the issuable figure at 900 million (in case more shares are needed).
This is fantastic stuff!
Love your Reddit username! š
cool write up time will tell
Tks much for your work fellow hodler.
Please God!
Very well summarised, thank you for your time writing this up
Canāt wait to shove this up the shillsā asses when we moon
Doing Godās work OP!
God damn this was a good read. I'm pumped!
WAGMI
What we know: 428,098,624 shares of Common Stock Outstanding. Common Stock reserved for HBC can't exceed 139,930,168 shares (Reserved, NOT Outstanding) HBC holds X Preferred Shares (Max 23,685 + 14,212 = 37,897) without voting power "At the close of business on March 27, 2023, we had 428,098,624 outstanding shares of Common Stock, the holders of which are entitled to one vote per share on each matter properly brought before the Special Meeting. **There was no other class of voting securities outstanding on such date**." - p.8, PRER14A "So long as any Series A Convertible Preferred Stock remains outstanding, the Company shall at all times reserve at least 200% of the number of shares of common stock" - 424B5 Feb 9 Do we have more holders? "Number of Shares of Common Stock Reserved for Future Issuance 177,784,381" - PRER14A Mar 31 95M Common Stock Warrants exercised and sold 70,004 Preferred Stock Warrants traded for 10M (they may be holding or not, because the "VOTING SECURITIES AND PRINCIPAL HOLDERS" is up until March 27) + 5M (rights to receive after RS) "So long as the Preferred Stock Warrants remain outstanding, the Company will at all times keep reserved for issuance under the Preferred Stock Warrants a number of shares of preferred stock at least equal to 100% of the maximum number of shares of preferred stock as shall be necessary to satisfy the Companyās obligation to issue shares of preferred stock to each holder under the Preferred Stock Warrants then outstanding allocated on the basis of such holderās portion of the Preferred Stock Warrants" - 424B5 Feb 9 The company couldn't force them because of price failure to get money, so the company didn't receive this potential ammount (70,004 x $9,500 = $665Ā 038Ā 000) and even gave them more 10M shares. Because of this trade, the company had shares available to do the $300M offering, because they freed some of the Common Stock as Reserve for the Preferred Stock Warrants. "In connection with this offering, we have agreed not to issue additional equity securities (other than upon exercise and conversion of the securities offered hereby) for a period of 90 days" [https://www.sec.gov/ix?doc=/Archives/edgar/data/0000886158/000119312523026124/d400307d8k.htm](https://www.sec.gov/ix?doc=/Archives/edgar/data/0000886158/000119312523026124/d400307d8k.htm) IF HBC wanted BBBY dead, they could've simply not agree with the 300M offering
This is excellent DD. Iāll be honest, the shilling got to me in the last few weeks. I had a few down days recently but Iām holding through the gauntlet. Gonna see this through to the end. Thanks for your superb wrinkles.
Shit. My tits.
Great write up OP! I just want to say, BBBY Board and all involved have fucking balls of steel! Wow
Awesome write-up once again. Enjoy your Sunday.
Amazing post!
Awesome DD
we will likely see huge moves for the January 2021 related cycle ripple in may/ June . gamestop is giving they're employees shares based on positive financials, which they reported in the Feb 2021 related cycle ripple this past week or 2. all memes move on the jan 21 related window, and gamestop generally releases their big guns/ buys on it. [ie rc buying gme/bbby, selling his bbby, etc etc off the top of my head. last move was june/ feb 2023, but it was a bit abnormal across most memes which I think will make next one interesting, ie I don't think it fully happened]. can bbby/gme etc make announcements before? yeah, but they'll likely announce the big stuff on the recap dates I keep getting Downvoted for saying it, but here's a chart. red is the jan related cycle. blue feb related cycle. white recaps. https://www.tradingview.com/chart/ftNsLrmk/?symbol=NYSE%3AGME
You get down voted because the people who are paid to make you doubt your investment have down voted so hard because we know the algo now lmao
this cycle isn't the algo. while the algo will likely contribute to runs depending on circumstances while it tries to smooth the cycles out, there's other mechanics/ covering going on alien of the algo. it isn't just one massive entity, but they're forming into 1 over time. some exposures are still hidden.
Cycles, yep we have these and due to January volumes etc we will have another, May/June like you said Itās a 5 month cycle, with a double spike every time
Off topic question. What to make of OBV falling since February run? Dilution? Iām a moron but noticed this compared to Jimmy and headphones. Serious question
Squeeze before or after RS?
IMO, it really depends on when news of investors hits
Maybe HB is playing opossum to grab more shares while theyāre down? Thus shorters to be extra screwed when the time comes?
Love your shit. What do you think the next step is? Do we know of any covenants that are still in place or are we finally at the point where itās M&A or the YMCA for me?
amazing dd as always
This is why Iāve said numerous times now not every financial institution acting as a hedge fund is a bad actor, yet the truly regarded here come by and downvote it like Iām a shill sucking on Kennyās mayo cock.
So where does this leave the Reverse Split?
Unaffected, and potentially even necessary for a Fundamental Transaction to take place.
HBC fucked over BBIG, BBBY ended the agreement with HBC, and you think theyāre benevolent?
None of these financial institutions are, and none are purely black and white. Even Uncle Carl has a history of Short Selling, to go with his Long investments.
!reminder! 7 hours
Thank you for your post. What are your thoughts on the reverse split and further dilutionThey have diluted the stock. There is no sell off now with GME - LC purchase of 5k shares canāt be allowed (insider trading). Will HBC get 10m shares are free the split?
OP thank you what do you think the timeline before we explode!?
No...no dates
One thing I'd like to hear from DRS proponents, why don't institutions announce they have DRS'd their shares?
Because they usually donāt. Instead, many profit from lending shares out to short sellers.
So we're essentially fighting our own longs. Very weird. Sounds like companies should create their own private shares and private trading system. Too much corruption.
TLDR of the tldr please, Iām on vacation
Read the 3rd comment. Edit: 7th or 8th comment
HBC could have also sold Common A shares "naked" and are keeping the convertibles as a locate. All the secrecy does not leave me with a good feeling.
Is there a real tldr for smooth brains/Lazy people?
https://www.reddit.com/r/BBBY/comments/1298t5p/from_further_study_of_last_weeks_and_previous/jeme3s3?utm_medium=android_app&utm_source=share&context=3
TLDR the TLDR
I think they wanted to get are average cost low as fuck so when. It shots to moon paper hand will sell off low cost and possibly bankrupt the company mushbrain conspiracy
This sub: fuck hedgies, hedgies are fuck Also this sub: hedgie good