Thursday - April 6, 2023

Today's newsletter will take 4.27 minutes to read.

DRS UPDATE: 59.46%* (estimated percent of GME shares direct registered)

*source: Computershared.net

On tap this morning:

• Wednesday recap

• GameStop NFT update

• Did you know?

• BBBY Upcoming Reverse Merger Theory

Good Morning! This is Mother Squeezer, the newsletter that like plumbers, work around the clock and brings you updates and insights along with timely information about our favorite Activist Investor, Ryan Cohen, and our favorite stocks - GME and BBBY.

Yesterday was quite active. BBBY used some interesting language in their filing, Sue sent us a selfie and BBBY fell off of Reg SHO.

"Roach" stated on ThePPShow last night that he and his group of investors poured over years of filings by various publicly traded companies and never saw language like this being used:

We don't know about you, but we think it's great to see BBBY addressing some of these issues that we've long suspected. Doing so in SEC filings = very bullish in our opinion.

Also, who puts their selfie in a filing? Well, apparently Sue Gove does. Yesterday she included her mugshot which we can't help but interpret as her oozing with confidence that she's not only putting her name on it, but also including her face.

Tendie relays another update from the filing:

There's conflicting speculation as to whether the upcoming reverse split actually goes through. Some think it's a smoke screen, others think it's a necessity to get through an acquisition. As for us, we're unsure, both arguments seem plausible, so we'll just monitor for new clues and decide.

After 60 consecutive trading days, BBBY is no longer on the Reg SHO threshold list. We don't see this as "good" or "bad", just noting a change. One thing we're looking to change is the direction the price is heading.

It's been a new 52-week low session, day after day for BBBY. That should be concerning, right?

Not if you think we're just about to blast off on what may prove to be one of the most epic squeezes in stock market history.

We're not intentionally...

...but, the way things are playing out, this has turned into a dream setup for those who believe a turnaround is in order.

That turnaround could come from slowly addressing the issues that plagued the company under the old leadership, or through some form of takeover/buyout/spinoff/merger/acquisition.

We're keeping an ear out for the latest and will bring it to you when it breaks.

That's it for this week, we hope you have a Good Friday and a happy Easter and we'll be back on Monday!

Wednesday Recap: BBBY traded between a low of $0.32 and a high of $0.37 before closing at $0.34. Trading volume was 105.56 million shares.

Cost to borrow: There were 4,100,000 shares available to borrow this morning and as of now, 1,000,000 remain. The cost to borrow has remained extremely elevated at 55.3%.

Pre market: Bed Bath and Beyond is trading up $0.01 to $0.34 an increase of 0.86% on over 4 million volume.

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

Wednesday Recap: GME traded between a low of $21.23 and a high of $22.47 before closing at $22.07. Trading volume was 3.64 million shares.

Cost to borrow: There were 450,000 shares available earlier this morning. Currently there are 150,000 remaining. The cost to borrow has remained elevated at 11.4%.

Pre market: GameStop is trading up $0.03 to $22.10 a increase of 0.14% on around 16 thousand volume.

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

GameStopNFT tweeted:

Actually, no we didn't know that. We learn something new everyday!

Did you know?

Robert Cornelius, an American photographer, took a daguerreotype of himself in 1839. Taken two years after the invention of the daguerreotype but just months after Daguerre shared his invention with the world, the image is thought to be both the first selfie and one of the first photographs of a person.

BBBY Upcoming Reverse Merger Theory

u/Life_Relationship_77 brings us a very interesting theory after researching S-3 filings.

Logical Deduction: BBBY Is Not Going To Be Eligible For SEC Form S-3 Filing After 10K Filing Because Of Upcoming Reverse Merger With A Private Business Entity Like Teddy Holdings LLC Before The 10K Filing

In the last 424b5 Prospectus Supplement SEC filing about the ATM shares offering, via B Riley Securities, BBBY specified that when they file their next SEC 10K report, which is due by April 26, they will not be eligible for SEC form S-3 filing, as seen highlighted in the screenshot below.

So, I researched into all the possible reasons why BBBY may be unable to use SEC form S-3, per the eligibility instructions specified in SEC form S-3 downloadable (pdf) from the SEC website and the only applicable reason I see is because it is reverse merging with a private entity like Teddy Holdings LLC, as it violates rules 6 and 3, as highlighted in the screenshot below as the reverse merging private entity has no SEC filing history.

So, I believe BBBY is about to reverse merge with a private entity like Teddy Holdings LLC via a SPAC like one of B Riley's award winning SPACs, before they file their next SEC form 10K report, which is due by April 26. Here is the SEC guidance on when SPACs can use SEC form S-3 post merger and that also states that the above eligibility requirements need to be met, which in this case cannot be met because of the absence of the predecessor private entity's SEC filing history. So, it is looking like the consignment deal between BBBY and Teddy Holdings LLC via Restore Capital LLC as an intermediary to create an Amazon competitor, which I had speculated about in this post (the consignment deal between BBBY and Restore Capital LLC was reported in today's PR), may be coming to fruition soon, before the 10K filing this month.

It is interesting that per today's proxy statement SEC filing the vote date on the Reverse Split proposal was specified as May 9 and so, it may imply that with the above consignment deal being finalized and the SP run-up expected when the reverse merger deal is announced the company expects to raise enough equity financing to last through April until the merger. In that case the Reverse Split may not even be necessary. Get jacked 🚀, it is happening!!!

Read the discussion here.

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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.