Monday - January 23, 2023

Today's newsletter will take 2.37 minutes to read.

DRS UPDATE: 50.77*% (estimated percent of GME shares direct registered)

*source: Computershared.net

On tap this morning:

• Friday recap

• Did you know?

• BBBY Welcome Rewards

Good Morning! This is Mother Squeezer, the newsletter that wants a Friday do-over and brings you updates and insights along with timely information about our favorite Activist Investor, Ryan Cohen, and our favorite stocks - GME and BBBY.

We're not going to sugar coat it - we're disappointed in last weeks performance. Both BBBY and GME were primed for breakouts but neither materialized. We're currently in a "wait and see" if this cycle is over or if this is the "dip before the rip".

Over the weekend, not much new was reported or discovered. Some things we're keeping our eyes on is the cost to borrow rates are still elevated for both GME and BBBY and BBBY is still on Reg SHO. We'll see how this impacts price movements this week.

Friday Recap: BBBY traded between a low of $3.31 and a high of $3.76 before closing at $3.35. Trading volume was 53.06 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 climbed to 252.2%. 

Pre market: Bed Bath and Beyond is trading down $0.11 to $3.24 a decrease of 3.28% on over 1.5 million volume.

Max pain: The current max pain for BBBY has remained at $3.50.

Friday Recap: GME traded between a low of $18.90 and a high of $20.07 before closing at $19.61. Trading volume was 3.56 million shares.

Cost to borrow: There were 550,000 shares available earlier this morning. Currently there are 1,000 remaining. The cost to borrow has remained steady at 21.3%.

Pre market: GameStop is trading up $0.22 to $19.83 a increase of 1.12% on 22 thousand volume.

Max pain: The current max pain for GME has dropped to $19.00.

Did you know?

Last week, GameStop announced that it would be closing its 630,000 square foot distribution center in Shepherdsville, Kentucky by June 30. This is part of their cost cutting and logistical improvement plan. 

In Q4 2021, GameStop opened a 700,000 distribution in York, Pennsylvania which handles fulfillment of their east coast operations. The 530,000 distribution center in Reno, Nevada caters to stores in the western part of the country.

Bed Bath & Beyond Welcome Rewards

We haven't yet gotten around to mentioning the exponential growth BBBY is seeing in their Welcome Rewards program.

In the Q2 report, the company was gaining new welcome rewards members at a rate of 60,000 new members per day (total of 6.4 million members).

In the most recent Q3 report (of which we still haven’t had a 10-Q filing for), we found out that BBBY in Q3 was gaining new welcome rewards members at a rate of 110,000 per day (total of over 16 Million members).

Welcome Rewards costs $29 per year. That’s $464,000,000 per year simply in subscription income, and since the subscriber base is growing exponentially, that number is bound to increase further. That revenue stream is on top of the revenue the company would make from the product these subscribers are buying in store and online.

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.