Tuesday - November 22, 2022

Today's newsletter will take 3.33 minutes to read.

DRS UPDATE: 58.40*% (estimated percent of GME shares direct registered)

*source: Computershared.net

On tap this morning:

• Monday recap

• GameStop NFT update

• Did you know?

• Ryan Cohen's Standstill Agreement

• Ryan Says

Good Morning! This is Mother Squeezer, the newsletter that has learned patience and continues 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.

We were a little disappointed that the bond deadline was extended once again. We knew it was a possibility but with all of the excitement over the weekend, we thought for sure we'd know the outcome soon.

The weather has turned cold up our way. The wife has been complaining about feeling run down after all the cleaning before house showings. So I got her a "Get Better Soon" card. She's not sick, I just think she can get better. /joke

There's nothing like a warm meal on a cold day. We tend to eat organic and the wife is a vegetarian. She's especially happy with root vegetables this time of year. We're lucky to still have a vast selection of lettuces and corn as well at our local farm stand.

That brings us to today's clever life hack. If you are in a rush and need to have some fast food, use a motorized drill as a utensil:

We like this new spin on corn eating!

Monday Recap: BBBY traded between a low of $3.04 and a high of $3.38 before closing at $3.11. Trading volume was 11.01 million shares.

Cost to borrow: There were 750,000 shares available to borrow this morning and as of now, 30,000 remain. The cost to borrow has remained at 8.9%.

Pre market: Bed Bath and Beyond is trading up $0.05 to $3.16 an increase of 1.61% on over 125 thousand volume.

Max pain: The current max pain for BBBY has remained at $3.50.

Monday Recap: GME traded between a low of $24.86 and a high of $27.83 before closing at $25.16. Trading volume was 4.42 million shares.

Cost to borrow: There were 700,000 shares available earlier this morning. Currently there are 0 remaining. The cost to borrow has remained steady at 8.1%.

Pre market: GameStop is trading up $0.56 to $25.72 an increase of 2.23% on over 70 thousand volume.

Max pain: The current max pain for GME has remained at $26.00.

GameStopNFT tweeted:

Another cool Guild of Guardian clip, built on Immutable. Available on GameStopNFT!

Did you know?

A standstill agreement is a contract that contains provisions that govern how a bidder of a company can purchase, dispose of, or vote stock of the target company. A standstill agreement can effectively stall or stop the process of a hostile takeover if the parties cannot negotiate a friendly deal.

The agreement is particularly important because the bidder will have had access to the target company's confidential financial information.

Ryan Cohen's Standstill Agreement

If you weren't aware, Ryan Cohen is in the midst of a Standstill Agreement with BBBY. You can read the agreement here:

https://www.sec.gov/Archives/edgar/data/886158/000092189522000972/ex991to13da113351002_032422.htm

Here are a few excerpts to note:

Section 2(a)(vi)(B) of the agreement says that prior to January 2, 2023, RC Ventures shall not "make any offer or proposal . . . with respect to any merger, tender (or exchange) offer, acquisition, recapitalization, restructuring, disposition, business combination or other extraordinary transaction involving the Company; or (C) solicit . . . encourage, initiate or support any third party in making such an offer or proposal."

TLDR: Even if he wanted to, RC is not allowed to make an offer on buybuyBaby before the end of this year. He can't solicit Icahn to do that, either.

Section 2(c) of the Agreement says that "Notwithstanding anything in Section 2(a) or elsewhere this agreement, nothing in this Agreement shall prohibit or restrict RC Ventures from (i) communicating privately with the board or any of the Company's officers regarding any matter, so long as such communications are not intended to, and would not reasonably be expected to, require any public disclosure of such communications."

TLDR: Even though he is not allowed to make an offer until January 2023, RC is allowed to talk privately with Sue or the Board.

Since RC entered into this agreement, the entire management team has been fired. All three of RC's nominees are still on the Board of Directors, and the Board is following the main recommendations outlined in RC's letter. It's also obvious that Ryan still wants to get in on the baby business (see e.g., Teddy, GameStop Kids). buybuyBABY is a critical part of this. We're not sure how some sources are still reporting that he's no longer involved!

Ryan Says

Ryan replied to his tweet on Saturday...:

Many of us believe "Teddy" will be the "Chewy" for babies. International shipping in the works!

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.