Hello,

How would I describe the situation of $BBBY stock and what has happened to it to someone who is trying to learn more about it?

Looking for a fast summary basically but still hitting all the critical points of this story that is unfolding before our eyes.

Any help would be appreciated.

Hey guys!

As the title says, I bought shares in bbby before they were deemed worthless and removed from my account. I'd like to believe this isnt the end of my investment here, but I have to accept that may be the case. The only thing that makes me believe it may not be over is the 652.5hrs in the docs that were logged in relation to M&A. What do you guys make of this?

Regards fellow Regards.

I wanted to do a quick update on BBBY as there are some interesting developments and further landmines for shorties.

Looking at what happened to BBBY last week, we saw a big gap up from 8.16 to around 13 and close of 11.31 Monday. What caused such a big move like that was this:

Above was the options chain as it was Thursday the 4th. On the 5th, as we closed above 8, all of the highlighted calls expired ITM. Approximately 37,118 just going off the open interest in the snap shot I had back then which = 3,711,800 shares.

As BBBY already had a ton of open interest leading into these recent movements, you will see on virtually all option chains there is a ramp being built. As BBBY moves higher, it becomes a self fulfilling prophecy of expiring contracts ITM and further propulsion higher.

Here is the options chain of ITM contracts for Friday (we closed under 13 and remained that way through 5:30 PM which is the last moment you can exercise).

Here is fridays contracts all ITM

This represents 62,849 contracts ITM and this equates to 6,284,900 shares. This is roughly just under double what happened on last Friday the 5th.

Below is Aug 19, this coming Friday and this is already all ITM:

This represents 51,618 contracts ITM right now that dont even expire until this Friday and I imagine even more will be added in further out strikes over the week. This represents 5,161,800 shares.

Open interest is stacking elsewhere too, more particularly on the Sept 16 and further on the Jan 2023. Here are the highlights for whats in store:

Theres even a cute buildup of open interest on Jan 2024!

I decided to do the math and if there is any part of all this thesis on BBBY that is a nail in the coffin it's this.

Jan 2023 ALONE has 305,170 open interest running from 8 to 80. So if BBBY ever gets to 80, exactly 30,517,000

Keep in mind the stock only has 79,960,000 outstanding shares and a float of 69,450,000. 55,767,626 of which are owned by the top holders of BBBY and 29,000,000 shares are short. So right now between shorted shares and actual holdings not even by any retail at all, 84,767,626 shares are tied up. Throw another 30,517,000 shares in the mix by Jan of 2023 and who knows what the price action will do. Could go down, could go up, who knows!

If you haven't noticed, all stocks are doing well right now. It is important that the maco economic green light is on so to speak. This makes BBBY the value in BBBY shine even more. BBBY has 7B in trailing 12 months revenue. The ONLY thing "holding it back" according to all our favorite analysts is debt. Let something come up about a debt refinance, far OTM warrants offering or restructuring of the bonds break loose and we go even higher because then the analysts won't have anything left to complain about.

Long term it matters if the management company cares about the company and fixing its fundamental problems. Once net income is fixed, BBBY doing 7B in revenues. Buy Buy Baby doing 1.3B. This revenue will only grow especially under this leadership team that actually cares about the company. This in and of itself can command the previous prices in 2013 and 14 of 80/share before Tritton ever got involved.

Worried about some tomfoolery coming in to basically cheat like they did last time? The odds of that are very low now.

Robinhood is in some hotwater and it serves as a warning to other brokerages who did do the same thing to try it again. It acts as a classical skull on a pole type of message.

There were some interesting things that happened with GME and its price swings. This sums it up:

Every day, high frequency trading firms like Citadel siphon away investors’ money using their super-sophisticated, blink-of-an-eye trading systems to anticipate upcoming market moves and pick off investors’ orders at favorable prices.  They then turn around and immediately resell those shares at the improved price, pocketing billions of dollars in sure-fire profits.  Called ‘latency arbitrage,’ the practice moves money from the pockets of everyday investors to the coffers of the sophisticated professional traders who get to take full advantage of their ‘sneak peak’ into the market.

https://bettermarkets.org/newsroom/todays-court-win-for-the-sec-is-a-big-win-for-investors/

Citadel lost this case July 29th or at least that is when these were reported. Notice anything interesting since Aug? Some stocks have just been on a tear! Coincidence? I leave that up to you. What we do know is a certain someone can't cheat openly anymore.

The most recent whale wisdom is looking good. We even have a fair bit of healthy disagreement going on with one group buying a TON of puts and another fund happy to take the opposite with a TON of calls:

https://whalewisdom.com/stock/bbby

I mentioned earlier that the macro environment matters and it does. Its important to note that its basically party on until mid Sept. Next fed meeting is Sept 21st:

Next inflation data Sept 13th:

So there virtually nothing to come in and pull the rug from the broader market macroeconomically. This means that money is coming into the markets because the coast is clear for now and we have seen that happen on just the broader indices. We don't even have BBBY earnings until an estimated 09/29! So there is literally a full month of no random inflation report or JPOW stepping in and destroying the direction of this recent rally.

Heres something to laugh about:

Lastly we still have the update coming this month! What could it be? It could be the start of no return.

TLDR;

37,118 contracts expired 8/5 propelling us higher on 8/8. lil under double that has expired ITM on 8/12 for 62,849 contracts having expired ITM on Friday. Jan 2023 has 305,170 contracts ITM if it gets to $80 by then. Robinhood has more eyes on its practices than ever and so will other brokerages if they try to pull a fast one and speaking of fast ones, citadel and other traders like them don't have high frequency trading like they used to.

Buckle up buttercup. Gonna be a bumpy ride

GUANGDONG, China (AP) — Bed Bath & Beyond (BBBY) announced today the finalization of an acquisition deal that would see the struggling home goods retailer sold to the Chinese technology conglomerate Tencent Holdings (700.HK). The details of the agreement have not yet been announced, but sources familiar with the deal say Tencent is expected to pay CN¥147 per share, in a mix of cash and equity.

"We're very excited," said Bed Bath & Beyond CEO Sue Gove. "This is a whole new chapter in the story of Bed Bath & Beyond. We look forward to working with Tencent to bring our well-beloved company back to the forefront of online and in-app commerce."

Shares of Bed Bath & Beyond do not presently trade on a public exchange, but interest in the company's 10- and 20-year bonds surged after-hours.

slunty's corner: guys this is BIG. obviously any M&A is great news for us but a sale to Tencent opens up the possibility of a BBBY×NIKKE collab! I can't wait to buy a bed or a bath with my favourite Nikkes already inside (idk if Nikkes are protected by trafficking laws but if so BBBY can probably use whatever loophole the Wayfair guys had)

see you on the 🌚

POST POSITIONS AND TARGETS

BBBY Update #1: ATM Share Offering Up to 12M Shares (as per PR) (link to SEC filing)

BBBY Update #2: Bed Bath & Beyond Inc. Announces Strategic Changes to Strengthen its Financial Positioning, Drive Growth and Better Serve Customers

So the ticker on tradingview is appearing again. On which exchange is BBBYQ trading?

And why did Flatex (EU Broker) delete my shares without notifying me?

As a higher karma is needed to post ont he $bbby subredditI wasn't able to share this and ask around if anyone's going through the same and how they are dealing with it?I've been telling myself it's time to move on as there's no use pouring water over a dead plant.But it's been just mentally draining.You know, it's like all these years of hardwork gone just because of a stock.If there's anyone going through the same? Please share how you are dealing with it..

thank you..

Hello Reddit,

I'm u/anonfthehfs and I am presenting this DD with a heavy heart because I just wrapped my head around what just happened.

I wanted BBBY to win and screw shorts. However.......

So far nobody is presenting this information in the proper way, or at least in a way that my little crayon-eating Marine Brain could understand.

Visual Representation of Dilution on $BBBY:

So just to clarify what that means in BBBY situation:

(I've been talking with Shawn at DilutionTracker who understands this stuff way better than me, so it's not just me talking out of my ass)

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Hudson Bay did this: (I'm simplifying this because I know this is really hard for a lot of people to read the legalese and understand these terms so I'm trying to bridge the knowledge gap.)

Hudson Bay either goes to BBBY or BBBY approaches Hudson because they are about to go bankrupt. They work out a deal to "save" BBBY but it comes at a huge price which I'll explain.

Main point being Hudson Bay: Committed to buy $220m preferred shares

Why? Preferred Shares were given to them at a discounted rate of 5% which means they have built in profit on ever single one converted. Hudson Bay literally doesn't care what price these BBBY shares get converted at because they already have profits built in.

When Hudson Converts these, the shares outstanding grows diluting the BBBY shareholders and shorts are able to find locates on FTDs.

Added kick in the nuts is there is INCENTIVE to lower the price, the more shares they get until it gets to the minimum 0.716 conversion price which is the "floor".)

Example from Shawn: ":If there was still $200m dollars of convertible preferred left and the lowest daily VWAP price in the last 10 days was $2, they can convert into $200m/($2*0.92)= 108m shares. If the lowest daily VWAP price in the last 10 days was $1, then they get $200m/($1*0.92)= 217m shares."

This means the lower the price, the more shares they get to convert

In simple terms, Hudson gets an 8% discount conversion price and the 92% formula ensures they always make money.

Hudson essentially will see how much they can dump onto the market before hitting the floor price of 0.716 cents.

From Shawn at DilutionTracker: "If there's still liquidity in the stock after the full $220m is converted, Hudson Bay has the option to buy up to $800m. If they feel like, or if the BBBY requests them to buy more, as long as stock hasn't gone below $0.7 yet which is the floor.

Warrants is to purchase more preferred shares at a 5% discount. Those preferred shares are the same as the convertibles at 2.37 that also contains variable conversion price.

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Price Protection on Feb Warrants Series A Convertible Preferred $2.25:

Prospective investors that purchase 75,000,000 or more of our Series A Convertible Preferred Stock and Common Stock Warrants will also receive a pro rata interest in 84,216 Preferred Stock Warrants to purchase up to 84,216 shares of Series A Convertible Preferred Stock. The Preferred Stock Warrants are immediately exercisable at any time at the option of the holder for a pro rata interest in the total Preferred Warrant Shares at an exercise price of $9,500 per share and will expire one year from the issuance date.

Price Protection : Feb Warrants $6.15:

If the holder of a Common Stock Warrant also holds Preferred Stock Warrants, then the number of shares of Common Stock issuable upon the exercise of the Common Stock Warrant held by such holder shall automatically increase on each exercise date of the Preferred Stock Warrant, on a share by share basis, by 50% of the aggregate number of shares of Common Stock then issuable upon conversion of the Series A Convertible Preferred Stock issued to the holder in each exercise of the holder�s Preferred Stock Warrant at the Alternate Conversion Price

February 2023 Series A Convertible Preferred $2.37 :

Price Protection: At the option of the holder of the Series A Convertible Preferred Stock, at any time and from time to time, the Series A Convertible Preferred Stock may be converted into Conversion Shares at a conversion price at the lower of (i) the applicable conversion price in effect on the applicable conversion date and (ii) the greater of (x) 0.7160 and (y) 92% of the lowest volume-weight average price of the Common Stock during the ten consecutive trading day period ending and including the trading day a conversion notice is delivered (the �Alternate Conversion Price�).

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Lastly the 6.15 warrants are their hedge in case it goes above $6.15 - They can use the Price Protections I just listed to make sure they are protected.

Remember that 90 Day Period $BBBY said they won't issue out more shares? There is a reason for it.

These Hedge Funds who are funding this deal wanted assurances that $BBBY wouldn't issue out their ATM and under cut them for funding. So the 90 period basically makes sure that these Funds like Hudson Bay will do their Conversions with no competition from the company undercutting them to raise money.

That means most likely the conversions will happen over the next 90 days from the start of the filing.

I would expect them to slap the ask orders and get the stock moving. Retail gets excited, and they sell into retails FOMO buying.

So watch for big spikes on BBBY followed by sharp sells right after for a while. They may push it up to get that volume really going......(So I'll be "wrong" and everyone will pile on me for "Knowing Nothing like Jon Snow."

Until the bottom drops out and they see how many shares are Outstanding after all these Dilution.

Dr. Burry was correct about this. Preferred Convertibles are not good......

TLDR: Hudson Bay just bent over $BBBY and had their way with them. BBBY basically had no other offers for financing and made this deal this will keep them alive temporarily but just diluted the hell out of their own shareholders.

BBBY is now taking that money to pay their debt/bondholders (Who in a case of bankruptcy would be paid first)

**Edit : Granted a merger would change everything but this is where we stand now.

I didn't have to say anything but I think it's important Retail Traders understand the full picture because I didn't until today.

What do meltdowners make of the Butterfly situation?

Genuinely want to know. If we are completely wiped out, what is the meaning of this change? And what do you think Butterfly is?

What lessons are you going to take from this when your shares get zeroed out? Are you going to fall down some other hopeless meme stock rabbit hole and continue doing this over and over or are you going to look at actual sound investments?

Bed, Bath & Beyond made plenty of mistakes that led to this week’s bankruptcy filing. Among the most consequential was the $11.8 billion it has spent since 2004 to buy back its own shares.

The company’s repurchase program wasn’t unique. But for a cash-starved business that announced it would likely be forced to close all of its stores if it couldn’t find an 11th-hour savior to buy it, the money could have been better spent. Instead, it fueled a desperate and ultimately failed effort to support its stock price.

The $11.8 billion Bed, Bath & Beyond spent on its own stock since 2004 comes to more than twice the $5.2 billion in debt it had on its books in its most recent SEC filing, a debt load that proved crushing for the company. It left the company unable to buy the inventory required to create the sales it needed to reverse losses.

“The company’s stewardship of their capital failed,” said Declan Gargan, retail director and credit analyst who follows Bed, Bath & Beyond for S&P Global Ratings.

Will the stock become worthless or will Overstock.com assume all those shares held by bbbyq shareholders? What are the possible outcomes? I see Overstock.com has taken a big jump but bbbyq hasn't jumped much. Wondering which is a better buy - bbbyq or ostk? Maybe the best bet is to just wait it out, but I would hate to miss out on the upside potential.

For all those saying we are going BK in a matter of hours, you would think the price would crater too a penny or less.

And yet: it has not.

Can those predicting a buyout/resurgence be sued for their lies?

Asking for a friend...