Monday - April 17, 2023

Today's newsletter will take 2.57 minutes to read.

DRS UPDATE: 54.83%* (estimated percent of GME shares direct registered)

*source: Computershared.net

On tap this morning:

• Friday recap

• Did you know?

• Cellar Boxing Explained

Good Morning! This is Mother Squeezer, the newsletter that is waiting on more official announcements and brings you updates and insights along with timely information about our favorite Activist Investor, Ryan Cohen, and our favorite stocks - GME and BBBY.

The weekend gave investors time to pour over the nearly 500 pages of filings and more discoveries and theories have been made. Also, some new questions have surfaced:

• why did BBBY switch proxy solicitors 3 times?

• why did Sue Gove release her interview through eToro?

• what in the heck is happening next?

We're hoping to get those questions answered in the coming weeks as we await more official announcements from the company ahead of the May 9 voting deadline.

In the meantime, u/Hard-Mineral-94 brings us a post summarizing what they think is coming and we hope they're right:

Friday Recap: BBBY traded between a low of $0.23 and a high of $0.25 before closing at $0.24. Trading volume was 89.27 million shares.

Cost to borrow: There were 6,600,000 shares available to borrow this morning and as of now, 6,600,000 remain. The cost to borrow has remained elevated at 19.2%.

Pre market: Bed Bath and Beyond is trading down $0.01 to $0.23 an increase of 1.30% on over 3.8 million volume.

Max pain: The current max pain for BBBY has remained at $0.50.

Friday Recap: GME traded between a low of $22.32 and a high of $23.25 before closing at $22.46. Trading volume was 2.31 million shares.

Cost to borrow: There were 80,000 shares available earlier this morning. Currently there are 50,000 remaining. The cost to borrow has remained elevated at 11.4%.

Pre market: GameStop is trading up $0.04 to $22.50 an increase of 0.18% on around 15 thousand volume.

Max pain: The current max pain for GME has remained at $22.50.

Did you know?

Cellar boxing is illegal, predatory, and fraudulent but has been around since the early 2000s.

Cellar boxing is defined as a fraudulent tactic used by financial institutions to drive a company’s stock price down to a deficient but tradable level, typically at the sub-penny level. When a company’s stock is driven to the sub-penny level, where manipulation can happen, this is called a cellar level price.

Cellar Boxing Explained

"CELLAR BOXING" is a form of naked short selling. The practice involves setting the price of stocks at the lowest possible level, $.0001 or one-one hundredth of a penny, and exploiting the 100% spread available to market makers. Market makers use naked short selling and broker/dealer internalization, where they flood the market with "counterfeit" shares and nullify any upward pressure in share price by neutralizing the demand for securities. This creates no demonstrable demand for shares and a huge oversupply, inducing a downward spiral in share price.

The author (linked below) argues that a large loophole exists in the DTCC's borrowing system, which allows naked short sellers to effect their goals, and poses a conflict of interest for investors who hold their shares in "street name" at their brokerage firm.

Finally, the article explains how "CELLAR" levels occur, how it impacts micro-cap corporations, and how the practice is legally allowed to occur.

u/mosswsb posted text from an article that originally appeared on a Yahoo forum back in 2004 that lays out more on cellar boxing. Read it here.

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: ThePPShow

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.