Monday - March 27, 2023

Today's newsletter will take 2.47 minutes to read.

DRS UPDATE: 61.30%* (estimated percent of GME shares direct registered)

*source: Computershared.net

On tap this morning:

• Friday recap

• GameStopNFT Update

• Did you know?

• Just How Short is BBBY?

Good Morning! This is Mother Squeezer, the newsletter that is ready for the split vote and brings you updates and insights along with timely information about our favorite Activist Investor, Ryan Cohen, and our favorite stocks - GME and BBBY.

If you remember, back on March 17, BBBY announced there would be a vote today about a reverse stock split. We're waiting on details to see just what the company is thinking.

There seems to be a lot of confusion regarding a reverse split. For those of you who don't know how a reverse stock split works, it goes like this:

Let's use easy numbers to keep it simple. Let's say you hold 1,000 shares of BBBY and there's a 10-1 reverse split. After the split, you'd now hold 100 shares. The price of each share would increase by the same factor as the split. In this case, that means each share would be worth 10x more. Note that your dollar value remains unchanged.

At current price of $0.83 you'd have 1,000 shares @ $0.83 = $830.

After a 10-1 reverse split you'd have 100 shares @ $8.30 = $830.

Let's see what the day brings!

Friday Recap: BBBY traded between a low of $0.77 and a high of $0.89 before closing at $0.82. Trading volume was 57.35 million shares.

Cost to borrow: There were 100,000 shares available to borrow this morning and as of now, 0 remain. The cost to borrow has remained extremely elevated at 99.2%.

Pre market: Bed Bath and Beyond is trading up $0.015 to $0.83 an increase of 1.48% on over 820 thousand volume.

Max pain: The current max pain for BBBY has remained at $1.00.

Friday Recap: GME traded between a low of $22.10 and a high of $23.99 before closing at $23.98. Trading volume was 8.77 million shares.

Cost to borrow: There were 1,000,000 shares available earlier this morning. Currently there are 100,000 remaining. The cost to borrow has remained elevated at 20.5%.

Pre market: GameStop is trading up $0.12 to $24.10 an increase of 0.50% on around 82 thousand volume.

Max pain: The current max pain for GME has remained at $22.00.

GameStopNFT tweeted:

and here is what it looks like:

Did you know?

A reverse split usually occurs the trading day after the company announces it. A company might do a reverse split to keep from being delisted. Stock exchanges give companies the boot if their stock prices fall below a certain level.

Just How Short is BBBY?

The latest (self-reported) numbers show BBBY with a short interest of 126.8%. Short interest is the number of shares that have been sold short and remain outstanding.

u/Region-Formal takes publicly available data and hypothesizes the short interest could be much, much higher. They show evidence it could actually be around 1650% when factoring in naked shorts!!!

If this is even remotely accurate, it explains how the share price has been driven as low as it is. When investors complain about the price, this is the reason why.

See the entire thread 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.