Thursday - February 2, 2023

Today's newsletter will take 3.17 minutes to read.

DRS UPDATE: 51.64*% (estimated percent of GME shares direct registered)

*source: Computershared.net

On tap this morning:

• Wednesday recap

• GameStop NFT update

• Did you know?

• More Buying From Institutions

Good Morning! This is Mother Squeezer, the newsletter that is dancing this morning with the pre market activity and brings you updates and insights along with timely information about our favorite Activist Investor, Ryan Cohen, and our favorite stocks - GME and BBBY.

There are investors reporting that the bond payments that were due yesterday were paid! This is contradictory to what the Wall Street Journal is reporting.

One of our favorite contributors, "Business Ben", released a video yesterday sharing the exciting news!

BBBY was trading up over $1.00 earlier this morning in pre market. It may be an interesting day if the price action doesn't get squashed.

Wednesday Recap: BBBY traded between a low of $2.57 and a high of $2.95 before closing at $2.82. Trading volume was 21.91 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 remained extremely elevated at 219.6%.

Pre market: Bed Bath and Beyond is trading up $0.63 to $3.45 a increase of 22.34% on nearly 13 million volume.

Max pain: The current max pain for BBBY has remained at $3.00.

Quick update on GameStop, the company has been operating in stealth mode for the better part of the last few years. This gives us little to share at times.

Interesting to note regarding trading of GME, yesterday $GME traded 71.22% short, a record 86 consecutive days at net short volume.

Wednesday Recap: GME traded between a low of $20.55 and a high of $22.12 before closing at $21.83. Trading volume was 4.51 million shares.

Cost to borrow: There were 400,000 shares available earlier this morning. Currently there are 250,000 remaining. The cost to borrow has remained around 19.4%.

Pre market: GameStop is trading up $0.35 to $22.18 an increase of 1.60% on over 95 thousand volume.

Max pain: The current max pain for GME has remained at $21.00.

GameStopNFT tweeted:

The appreciation for digital collectibles is growing!

Did you know?

A corporate bond is debt issued by a company in order for it to raise capital.

An investor who buys a corporate bond is effectively lending money to the company in return for a series of interest payments, but these bonds may also actively trade on the secondary market.

Corporate bonds are typically seen as somewhat riskier than U.S. government bonds, so they usually have higher interest rates to compensate for this additional risk.

The highest quality (and safest, lower yielding) bonds are commonly referred to as "Triple-A" bonds, while the least creditworthy are termed "junk".

More Buying from Institutions

Yesterday, it was discovered that the Bank of Montreal added 32,818 shares of BBBY to their portfolio.

Our friend, u/Whoopass2rb shared:

For interest: BMO is a Canadian bank (I believe it's oldest one) and they mostly deal with business here in Canada, Asia and then parts of the US (big catering to Mandarin language people). But they have a ton of ETF options where they will go and manage different investment baskets. Doesn't surprise me they have taken a stake in this.

In the US their primary partner is BMO Harris Bank (out of Chicago - if they still exists) and they also purchased assets on the west cost out of Arizona (last I worked with them but I forget the bank's name they acquired). That was over 10 years ago so they have likely acquired a lot since. Not during COVID however as Canadian regulation put a hold on banks spending money over 2 years with COVID, to insure Canadians had access to their money and that banks could support the governments money printing actions.

BMO is considered the 4th largest bank in Canada, behind RBC (#1), TD (#2) and Scotiabank (#3).

Final fun fact: BMO is one of the lenders on the ABL term with BBBY, as is TD. You can see it at the bottom of the document with the signatures. The correlation here is that TD and BMO do the most banking with the US, so logically it makes sense they would be tied to lending for a US based company, and likely their locations up here in Canada. :)

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.