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- Monday - August 22, 2022
Monday - August 22, 2022
Mother Squeezer
August 22, 2022
Today's newsletter will take 4.37 minutes to read.
DRS UPDATE: 48.494*% (estimated percent of GME shares direct registered)
*source: Computershared.net
In this morning's edition:
Friday recap
GameStop NFT update
Did you know?
Connecting the dots
Ryan Says
Good Morning! This is Mother Squeezer, the newsletter that helps you connect the dots by bringing you clever life hacks, updates and insights along with timely information about our favorite Activist Investor, Ryan Cohen, and our favorite stocks - GME and BBBY.
Wow - what a change in sentiment the weekend has brought. The individual investors seemed to spend the weekend doing some independent research on the Ryan Cohen/Bed Bath and Beyond situation. What has been discovered is...wait for it...beyond exciting.
People who sold their shares due to the media narrative being pushed are beginning to look like nuts. As for us, our juices are pumping! This has been a long road but it feels like the end is near - we do have a question for you to chew on though:
What caused the coconut to stop in the middle of the road?
Because he ran out of juice! /joke
While we're on the topic, coconuts really are an incredible fruit. We are able to harvest the shell, pulp and milk for food along with health and beauty products and many other uses. That brings us to this morning's life hack:
Just kidding! We actually really enjoy kale.
Friday Recap: BBBY opened on a gap down to under $10 in pre market then peaked out at $12.53 during trading hours before closing at $11.03 on over 136 million trade volume.
Cost to borrow: There were 450,000 shares available to borrow this morning and as of now, none remain. The cost to borrow has dropped back down to 29.4%.
Pre market: Bed Bath and Beyond is trading down $1.99 to $9.04 a decrease of 18.04% on around 4 million volume.
Max pain: The current max pain for BBBY is $15.
The percentage of direct registered shares dropped over the weekend due to institutions selling off nearly 20 million shares. This is nothing to be concerned about, institutions rebalance their portfolios from time to time.
Friday Recap: GameStop also opened on a gap down to under $36 in pre market. It was relatively flat throughout the trading day and then hit a leg up just before close, ending the day at $36.49.
Cost to borrow: There were 900,000 shares available earlier this morning. Currently there are 60,000 remaining. The cost to borrow has dropped to 16.5%.
Pre market: GameStop is trading down $2.64 to $33.65 a decrease of 7.23% on around 300 thousand volume.
Max pain: The current max pain for GME is $37.
GameStopNFT tweeted:
Support the underground electronic music scene with Frequencies! Enjoy sneak peeks and exclusive releases on GameStop NFT
— GameStopNFT (@GameStopNFT)
10:50 AM • Aug 22, 2022
Now that's cool seeing NFTs and music being talked about. NFTs are going to be huge!
Did you know?
Activist investor Carl Icahn, one of Ryan Cohen's investor role models, pushed eBay and PayPal to separate in 2014. This unlocked tremendous value for shareholders of each new entity. Are you seeing a correlation here?
Ryan Cohen by day, Warren Icahn by night
— Ryan Cohen (@ryancohen)
5:41 PM • Apr 13, 2022
Warren Icahn = Warren Buffet + Carl Icahn - two of the greatest investors of our generation.
Connecting the dots
Wow, it's been quite a ride with ups and downs along the way. Get ready for some more ups! Below is a timeline of events that we've pieced together:
January 13, 2022 - March 3, 2022 - RC Ventures accumulates 9.8% stake in BBBY
March 6, 2022 - RC Ventures issues letter to the BBBY board regarding the current strategy and makes recommendations (key excerpts below):
We believe Bed Bath needs to narrow its focus to fortify operations and maintain the right inventory mix to meet demand, while simultaneously exploring strategic alternatives that include separating buybuy Baby, Inc. (“BABY”) and a full sale of the Company.
Seek to Monetize the Ultimate Destination for Babies – Another path that can streamline Bed Bath’s strategy and unlock value trapped within the Company’s underperforming shares is a sale or spin-off of the BABY banner. Given that BABY is estimated to reach $1.5 billion in sales in Fiscal Year 2023 with a double-digit growth profile and at least 50% digital penetration, we believe it is likely much more valuable than the Company’s entire market capitalization today
Assuming continued growth and low double-digit margins, we estimate that BABY could be valued at a double-digit earnings multiple on a standalone basis. We believe under the right circumstances, BABY could be valued on a revenue multiple, like other ecommerce-focused retailers, and justify a valuation of several billion dollars.
March 14-15, 2022 - Ryan lets us know what he thinks about hedge fund short sellers:
Short sellers are the dumb stormtroopers of the investing galaxy
— Ryan Cohen (@ryancohen)
2:55 AM • Mar 15, 2022
Good use of taxpayer $ is the government cracking down on hedge fund short sellers
— Ryan Cohen (@ryancohen)
2:40 AM • Mar 16, 2022
March 31, 2022 - Ryan tweets this:
Children and animals must be protected at all costs
— Ryan Cohen (@ryancohen)
9:00 AM • Mar 31, 2022
August 10, 2022 - Ryan leaves us with this:
so we looked up "meaning of purple heart" and found this:
another theory here is red (GameStop) + blue (buybuyBaby) = purple...hmmmm.
August 18, 2022 - This form was filed with the SEC showing RC Ventures disposing of its holdings in BBBY because of insider status [LINK]
Also on this date, Bed Bath and Beyond hired law firm Kirkland & Ellis who, amongst other things, specializes in mergers and acquisitions.
August 22, 2022 - BBBY is still listed on threshold list: [LINK]
What's our take? Thank you for asking. Information is still being uncovered so our position may change, but currently, here is our thinking:
We believe Ryan Cohen is involved with an acquisition of buybuyBaby. Bed Bath and Beyond has mentioned multiple times that an announcement would be coming before the end of August.
Additionally, we believe Ryan was required to sell his interest in BBBY to pursue some sort of merger without there being a conflict of interest. This could be bringing some sort of merger with GameStop or it's newly formed entity, GMERICA (filed on 8/23/2021). It appears that Dragonfly Commerce, where Ryan was added as a director earlier this year is involved. If we are remotely close with our speculation...
Get it? Check - mate! 🚀
Ryan Says
Ryan tweeted this back at the end of May:
Life is for working, loving, and laughing
— Ryan Cohen (@ryancohen)
4:33 AM • May 31, 2022
Ryan has been working hard to create shareholder value and is going to love to have the last laugh - trust the process!
We believe Ryan Cohen is becoming this generation's premier activist investor. That's why we created this newsletter - to help others become aware.
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!
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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.
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