Tuesday - August 9, 2022

Today's newsletter will take 3.63 minutes to read.

DRS UPDATE: 51.411*% (estimated percent of shares direct registered) 

*source: Computershared.net

We don't know about you, but we found it hard to sleep last night. And no, we're not talking residuals from the three bean dip. The market activity yesterday was 🔥🔥🔥. Speaking of beans, it's almost time for breakfast. 

My family practice doctor said I need freshly squeezed orange juice everyday.

Why? I cannot concentrate! /joke

Now that's one scary looking orange

Good Morning! This is Mother Squeezer, the fun newsletter bringing you corny jokes, updates and insights about our favorite Activist Investor, Ryan Cohen, and our favorite stocks - GME and BBBY.

Wow - what a day Monday turned out to be. Both GameStop and Bed Bath and Beyond once again closed positive on the day. We believe that makes six in a row!

That's how things are feeling about now, right?

Bed Bath and Beyond

BBBY closed at $11.41. Yes, that's right eleven dollars and forty one cents! It seems like it was just last week we were trading in the $5's. Oh wait, we were.

Volume yesterday was nothing to joke about. Over 120 million shares were traded. How does that happen when there's only around 69 million total shares in the float? Exactly...cough...cough...crime.

We had a killer day ending up $3.43 for an 8.57% increase on the day. 

As of late, it's been very encouraging to see not many shares available for borrowing. There were never more than 60,000 shares available to borrow. The cost to borrow is heading up again, currently costing 6.43% to borrow shares used for shorting. We report on these figures because there seems to be a correlation between a rising cost to borrow and the prospect of squeezing.

After close yesterday, we saw 90,000 shares appear for borrowing. 85,000 were borrowed at 6.46%.

If you're thinking of buying BBBY keep in mind that Ryan Cohen's average is thought to be around $14/share. Bullish.

GameStop

GameStop closed up 8.57% ending the day at $43.45. There were nearly 18 million shares traded, lifting our average trading volume to 6.11 million shares. Price and volume have both been rising over the past 6 trading days. If we see sustained elevated trading volume, watch out!

With the higher than normal trading volume, those borrowed shares get saturated pretty quickly. We didn't notice much of an impact in regards to an aggressive shorting of the price down. The stock demonstrated strength all day and seems to be building some momentum at these prices.

Overnight there were a fresh 150,000 shares available to borrow. It looks like 105,000 were already borrowed so we'll monitor how this impacts the price action today. The cost to borrow is 29.8%.

Did we mention that trading was halted - twice? Yesterday in the first half hour trading was suspended to slow the surge. More on trading halts below.

Late breaking update: 8:32am - right before this morning's newsletter was delivered, 950,000 new shares became available to borrow...prepare for a possible dip!

Did you know?

Before becoming the executive chairman of GameStop, Ryan Cohen was the founder of Chewy. It was originally known as Mr. Chewy! Ryan saw an opportunity to wow customers in the pet sector and blew expectations away for investors and customers.

Trading Halts

GameStop was halted for trading twice in the first half hour of the session. What exactly is a trading halt and why was it issued? Let's see what Investopedia has to say:

Those of us who've been in GME for awhile are very familiar with these mechanisms. They have a tendency of slowing momentum, giving the "bad guys" an opportunity to borrow some shares and slide some sell orders in to drop the price and offset an imminent surge.

So why exactly was trading halted? There are different reasons for a stock to pause trading due to a halt. GameStop was stopped for Trade Halt Code: M which means:

Ok, that still doesn't mean much to us. What do we think it means? The "bad guys" got scared when they saw the price begin to surge. They quickly borrowed shares, shorted the price to trip the circuit breakers and halt trading. They did this twice. 

This may have worked again today to stop a squeeze from occurring, but we're getting closer to them not being able to combat this mother from squeezing.

Pre Market

GameStop is trading down about $2.26 currently around $41.19, a decrease of about 5.20% and Bed Bath and Beyond is trading down ever so slightly, a drop of about $0.14 to around $11.27, down around 1.23% in pre market.

Ryan Says

While we await Ryan's next tweet, we'll revisit one from the past:

If you've been invested in GameStop or Bed Bath and Beyond, it sure does feel like Ryan is our Sugar Daddy! Many think GME is a hedge against a market meltdown. Time will tell!

Have a great Tuesday - don't forget the tacos, and we'll be back in your inbox tomorrow morning!

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!

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.