Wednesday - August 17, 2022

Today's newsletter will take 4.29 minutes to read.

DRS UPDATE: 52.31*% (estimated percent of GME shares direct registered) 

*source: Computershared.net

On tap this morning:

• Monday recap

• GameStop NFT update

• Did you know?

• Cost to Borrow Comparison

• Ryan Says

Is Bed Bath and Beyond Squeezing?

Is this starting to feel like groundhog day to you too?

Here's what we know:

• cost to borrow high and increasing

• limited shares available to borrow

• off exchange trading exceeded NASDAQ (lit exchange)

• growing retail investor support

• current market cap only $1.27b

BBBY is ridiculously good looking. In our opinion, it has quite a bit of room to run. Yesterday's volume was insane. Often times, volume precedes price movements.

After Ryan Cohen put Bed Bath and Beyond on our radar, we started shopping the site for new home items. It seems to be the destination for all kinds of stuff for our home.

We could use more towels and sheets amongst other things. Which reminds us, why should you never share a bed with a woodchuck? They always hog the covers. /joke

Good Morning! This is Mother Squeezer, the newsletter that sometimes is the little spoon in your life, 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.

Which brings us to today's clever life hack, to expedite your waking in the morning, soak your contacts directly in coffee the night before:

Ok, you try it first and let us know how it works out for you.

We had a great Monday. The market was incredible for Bed Bath and Beyond. GameStop is still gearing up for a move despite all the manipulation, trading sideways, but still getting ready for a big green candle.

We were able to catch up with one of our friends, a psychiatrist, we haven't spoken to lately. We touched on the economy, kids going back to school and of course, stocks. He then went on to tell us about a recent visit from a client.

A patient came in and told him [our psychiatrist friend], "Every time I drink my coffee, I get a stabbing pain in my right eye," Our psychiatrist friend said, "Well, have you tried taking the spoon out?"

Good Morning! This is Mother Squeezer, the newsletter that...oh wait, we already did that...

Monday Recap: Bed Bath and Beyond showed strength all day. It started the day hot and kept the momentum throughout the session. It climbed past $17 topping out at $17.05 before retreating back and closing at $16.00. It hit the low of the day of $13.37 and never really looked back.

This on extremely high volume of over 164 million shares. This has brought our average volume up to just about 63 million shares.

Cost to borrow: There were 350,000 shares available to borrow earlier this morning and as of now, 300,000 remain. The cost to borrow is higher yet again, currently at 55.0%. Whew! How high will this cost to borrow go?

Pre market: Bed Bath and Beyond is trading down $0.72 to $15.28 a decrease of 4.50% on 3 million volume.

Max pain: The current max pain for BBBY is $10.

While we're at it, Bed Bath and Beyond has spoons, 583 listings as a matter of fact.

Interesting enough, GameStop is on the verge of a golden cross. For those of you who don't know, it’s when the 50 day moving average crosses above the 200 day moving average.

It’s an unusual occurrence, GME last printed one in September 2020. This is one of the major indicators large institutions use to enter positions. It will trigger alerts on trading floors across the globe.

We'll be keeping our eyes on this. This is just one more reason to be excited about GME!

Monday Recap: GameStop closed down 2.60% ending the day at $39.68. Trading volume was lower than average. There were just over 5.2 million shares exchanged, coming in below our average trading volume of 6.93 million shares. 

Cost to borrow: There were 600,000 shares available earlier to borrow this morning. Currently there are 250,000 remaining. The cost to borrow stayed steady, currently at 23.0%.

Pre market: GameStop is trading down $0.13 to $39.55 a decrease of 0.33% on 38 thousand volume.

Max pain: The current max pain for GME is $38.

GameStop doesn't currently carry spoons, however, they have this neat shirt with a Fred Flinstone figure and he's holding...you guessed it...a spoon:

GameStopNFT has added Jitterbug, a 1920s inspired collection called @roaring20snft

Did you know?

Bed Bath & Beyond purchased Harmon Stores in 2002. There are 27 stores in 3 states. Harmon Stores began as a discount supermarket chain but grew to much more as a part of Bed Bath & Beyond. Each sells discounted items including food, health and beauty products and items for the home and office.

Cost to Borrow Comparison

To put the current cost to borrow into perspective, below is a comparison against a few other popular securities along with their cost to borrow fees:

GameStop 23.0%

Bed Bath and Beyond 55.0%

Apple 0.2500%

Meta (Facebook) 0.2500%

Alphabet (Google) 0.4081%

Popcorn 6.4583%

As you can see by comparison, these fees to borrow shares that are used to short the stock are astronomical! There seems to be a correlation with a rising cost to borrow and the price increasing. We'll continue to monitor and report our findings.

Ryan Says

Here is a tweet from Ryan a few weeks ago:

We couldn't agree with him more. As difficult as things may seem at times, this is an incredible time to be passing through this life. We really do have things so good compared to previous generations and civilizations.

We believe Ryan Cohen is becoming this generation's premier activist investor. That's why we created this newsletter - to help others become aware.

We appreciate you taking the 4.29 minutes out of your day to read our newsletter this morning. If you find yourself struggling to understand any of the information that we bring you, and think that you may need a little assistance to better appreciate our efforts, consider a stint at one of our friends passion projects:

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!

Last one, what is a knife joining the track team called? Blade Runner.

Have a Tremendous Tuesday and we'll be back in your inbox tomorrow morning so get on with your profession and enjoy today's session!

Some of our Favorite Resources

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.