Friday - January 13, 2023

Today's newsletter will take 2.71 minutes to read.

DRS UPDATE: 50.17*% (estimated percent of GME shares direct registered)

*source: Computershared.net

On tap this morning:

• Thursday recap

• Did you know?

• Ryan Says

Good Morning! This is Mother Squeezer, the newsletter that will be wearing our sunglasses tonight and brings you updates and insights along with timely information about our favorite White Knight, Ryan Cohen, and our favorite stocks - GME and BBBY.

Wow! What an exciting day yesterday was. We showed strength all day. If this is your first time involved as an investor in a heavily manipulated stock, let us give you a few pointers:

• expect volatility

• create your exit strategy (sliding scales are good)

• don't read mainstream media

• don't listen to what people on social media platforms are saying

• learn who to trust

• oh yea, expect volatility

That's right. We haven't seen extreme volatility yet, but know it's coming. As a reminder, when GameStop climbed from the low single digits to over $400, it wasn't a straight shot. There are trading algorithms that are designed to get traders to exit their positions on downturns. That's why creating a trading plan before your emotions get involved is imperative. 

With BBBY, we've seen people claim they'll be holding out until $200, $400, $800 and even over $1,000 per share! Do we think it'll go that high? We don't make price predictions but we will say that we've seen some craziness before and it's an awful feeling selling too soon. These runs often last for a few weeks so we may be very early with this one. Scaling out of positions after achieving x% profit is ideal...you determine the "x".

A great strategy that we like to use is to scale out to cover our investment and let the rest ride. We never lose by taking profit.

Until then, get ready for some Friday Night Lights!

Thursday Recap: BBBY traded between a low of $3.64 and a high of $5.87 before closing at $5.24. Trading volume was 329.43 million shares.

Cost to borrow: There were 0 shares available to borrow this morning and as of now, 0 remain. The cost to borrow has remained at 67.3%. 

Pre market: Bed Bath and Beyond is trading up $0.02 to $5.26 an increase of 0.38% on over 15 million volume.

Max pain: The current max pain for BBBY has climbed to $2.50.

Thursday Recap: GME traded between a low of $18.34 and a high of $20.63 before closing at $20.63. Trading volume was 5.87 million shares.

Cost to borrow: There were 150,000 shares available earlier this morning. Currently there are 65,000 remaining. The cost to borrow has remained steady at 21.1%.

Pre market: GameStop is trading down $0.85 to $19.78 a decrease of 4.12% on 115 thousand volume.

Max pain: The current max pain for GME has climbed to $17.50.

Did you know?

On Sunday, October 26, 2008, Porsche announced it had acquired a 74.1% stake in Volkswagen. It was later discovered that Porsche strategically chose a weekend to make their position known to create maximum FOMO. (hmmm, we wonder what making an announcement on the Friday evening of a holiday weekend would do?)

This was the catalyst that triggered the shorts to close their positions and ignite a squeeze. The worst of it only lasted a few days. Soon, the news broke out that with Porsche's increased stake in Volkswagen, only 6% of the Volkswagen shares were available for trading compared with the requirement of around 12% shares for covering outstanding short positions.

After the stock price peaked, Porsche released around 5% of its Volkswagen holdings at stratospheric prices and allowed short sellers to close their positions. After the 28th of October, the stock plummeted by more than 58% in the next four days. A month later, the stock was down 70% from its height.

Nevertheless, short sellers suffered heavy losses as they were caught between the rising prices and the limited supply of shares in the market. According to some estimates, hedge funds lost around $30 billion on their Volkswagen short positions.

Spread the Word

We love Ryan Cohen and think he's the greatest Activist Investor of our generation. We are passionate followers of his moves and words and would love for others to know more about this great leader. We feel strongly that life is all about learning who to follow. If you have someone that needs more RC in their life, share Mother Squeezer with them!

Some of our Favorite Resources

Start Here

BBBY: Ben - Mr. Business

GME: Richard Newton

Computershared.net

For errors, omissions or if you have something to share? Let us know!

Financial Disclaimer: None of this is meant to be financial advice. We love Ryan Cohen, RC Ventures, GameStop and Bed Bath and Beyond, and like learning and sharing these insights and commentary.