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Reddit
reddit.com › r/bbby › investors are betting on a short squeeze in bed bath & beyond (bbbyq) stock
r/BBBY on Reddit: Investors Are Betting on a Short Squeeze in Bed Bath & Beyond (BBBYQ) Stock
October 24, 2021 -

“Indeed, this stock has just become very difficult for short sellers to continue holding their positions. As such, it’s entirely possible this rally could continue for some time.”

Top answer
1 of 5
490

lol, I mean I'm 95% down so yeah, Im betting on a short squeeze 🤣

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183

Squeeze or not, investors are looking at a company that has lost 99% of it's share value in less than a year. It is a retailer that has an existing logistics/distribution network, a recognizable brand, and is the owner of a subsidiary that is profitable and well liked in the niche baby care market.

Investors would obviously love a squeeze, but I suspect this is a way to perpetuate the stereotype that retail investors are unsophisticated gamblers. I can't speak for everyone, but when I look at this company, I continue to ask myself, "Why is complete destruction of this company necessary? Is there truly no way to run the company profitably?"

The company needs to deal with it's debtors, and it also needs to deal with an outdated business model. However, to suggest that they have taken no steps to rectify those issues is to completely ignore the plethora of SEC filings available to you.

Yes the stock was delisted. Yes the company is in bankruptcy litigation. It also true the that stock has been heavily shorted. Even conservative estimates put SI around 20% which IS STILL high. What investors want to see is that a company that could restructure and be successful be given the opportunity to do so without being forced to placate wall street in order to maintain share value.

Everyone has been saying to sell sell sell for months. And it is true that if you bought and hold you have lost a ton of value. Yet, bidders are lining up to try and get a piece of this company while it is backed into a corner. This should tell you that the company still has value. The value has been detached from the ticket in many ways. Investors are hoping that through bankruptcy proceedings, the company will be able to effectively restructure and get another crack at modernizing their business.

These are not unreasonable assumptions. There is outstanding risk that deals fall through and the company liquidates. But investors have considered these risks and have decided to hold despite the red flags.

I just wish we could get real journalism instead of misinformation that is at best simply ignorant to the situation, and at worst attempts to undermine individual traders so as to preserve the status quo on wall street.

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Reddit
reddit.com › t › $bbby
Best $BBBY Posts - Reddit
Two days ago (Aug 16), we saw that Citadel and Susquehanna are big shareholders in BBBY. Citadel and Susquehanna went net long on BBBY probably because RC was heavily invested in BBBY when it had over 100% short interest which is very deep into Short Squeeze territory.
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Reddit
reddit.com › r/bbby › some of you are still skeptical about short squeezes. you think they happen very rarely, and only a lucky few have ever profited off them. you believe it could never be you. well, let me show that 'miracles' do happen, a lot more often that you think, and all in ways that $bbby has in its favour!!!
r/BBBY on Reddit: Some of you are still skeptical about short squeezes. You think they happen very rarely, and only a lucky few have ever profited off them. You believe it could never be YOU. Well, let me show that 'miracles' DO happen, a lot more often that you think, and all in ways that $BBBY has in its favour!!!
November 15, 2020 -

The reason for me posting this is partly because there seems to be a lot of doom-and-gloom around, which I think is completely unnecessary given everything going in $BBBY's favour! I have referenced a number of DDs that I have posted in the past, showing that short squeezes can be triggered from many different types of conditions. As our stock has pretty much all these instigators acting on it right now, read on and keep the faith...

Dillard's ($DDS)

A slow squeeze that took place from mid-2020 through to late-2021, on the back of Short Interest that reached a maximum of 101% of the float:

The stock price multiplied by 19.5 times from the low to the high. In $BBBY terms, a similar short squeeze would produce a peak price just over $21 per share. See my DD below for more info on this and other short squeezes resulting from excessve Short Interest situations:

https://www.reddit.com/r/BBBY/comments/11fcvor/what_outcomes_do_stocks_have_when_their_short/

Revlon ($REV, now $REVRQ)

A very interesting short squeeze that was triggered by the company filing for Chapter 11 bankruptcy protection. As detailed in the DD, Revlon were in a much worse situation than even $BBBY were before the events of the last couple of months, having debts in excess of $3.3 billion. With no saviour, they had no option but to take the Chapter 11 route, and the result was as follows:

Although the company's stock price has fallen back down, to the extent of it going on the Pink Sheets, it was not before the shorts were squeezed out with the price increasing just over 10x. Applied to $BBBY, this would mean an equivalent price of $11 per share. See my DD below for more info about this and other short squeezes resulting from Chapter 11 bankruptcy protection filings:

https://www.reddit.com/r/BBBY/comments/10owxfc/an_ma_is_the_more_likely_outcome_but_why_i/

Hertz ($HTZ)

Another short squeeze similar to Revlon above, which was triggered by a Chapter 11 Bankruptcy filing. That was on the back of short hedge funds targeting the firm for naked shorting, the thesis being that car rentals would be severely hit during the COVID lockdowns. Although the theory was probably correct, market mechanics eventually de-coupled the stock from the company's financial status, and the result was this price action:

The Cost To Borrow reached 112% and that seems to have led shorts to begin closing out their positions in waves. As a result the stock price multiplied, during 20 months starting from the middle of 2020, by about 113 times from the low to the high. Applied to $BBBY, that would produce a price of $124 per share. More on this short squeeze in the DD linked above.

RedBox ($RDBX)

Those of you who have read my various DDs would know that this is a stock I have studied closely, as $BBBY has shown a number of similarlities to it in various ways. Another firm that was close to bankruptcy, it was saved from this fate by an acquisition by Chicken Soup for the Soul last year. The nature of that acquisition - an All-Stock deal - meant that short sellers were forced to close out their positions, resulting in the following price action:

From its depths before the M&A announcement, the stock's price increased by 11x in about 4 months before the deal was completed. A similar squeeze with $BBBY would thus result in a price of $12 per share. You can see more abou this story, and other short squeezes resulting from M&As, in my DD from last year:

https://www.reddit.com/r/BBBY/comments/ynw6ik/i_see_many_postscomments_with_a_fundamental/

Support.com ($SPRT)

A similar example to RedBox, this company squeezed the previous year on the back of a Combination Cash-and-Stock M&A with Greenidge. Amidst Short Interest of over 60%, the resulting price action can be seen below, as short sellers rushed for the exit before the deal was completed:

The low-to-high on this was a 28x multiplier, and you can read more about it in the DD linked above. Applied to $BBBY, this would result in a price of $30 per share.

Tesla ($TSLA)

Once upon a time, before he started to go "Wacko Jacko", Elon Musk was as anti-short selling as they come ("It is a means for, in my opinion, bad people on Wall Street to steal money from small investors.") He had good reason to feel that way before Tesla became the stock juggernaut it is today, given a massive amount of Short Interest in the stock. However a very long and drawn out short squeeze which lasted until the end of 2021 produced the following chart:

Albeit an incremental rise over 3 years, Tesla's stock price increased by 36x on the back of short squeezing and FOMO. A similar price surge for $BBBY would ultimately mean $40 per share.

AMC Entertainment ($AMC)

Some of you reading this may not be a fan of the company, and particularly the words and actions of their CEO. However in the early summer of 2021, the company's stock price did see a huge movement amongst a frenzy of publicity:

The fact is that a squeeze of some kind occured on this stock, and its price increased by about 38x over the course of about 5 months. Interestingly the low point was a price of $1.18, which is not dissimilar to where $BBBY is right now. A similar surge for $BBBY would result in a tidy $50 per share.

GameStop ($GME)

The "Big Daddy" of squeezes, and the reason that many of them are in this $BBBY play. Most of you would be familiar with the story, but basically came about due to short hedge funds taking an 'asymmetric bet' against hard hit bricks-and-mortar retail during the dark days of COVID. Little did they know that a "white knight" in the form of Ryan Cohen, with a retail investor champion called DFV that espoused the merits of the investment, would turn things on its head. The result was this:

It is important to note that although the buying frenzy was due to the potential of a short squeeze, as the subsequent government investigation reported: the price action above was not by shorts closing their positions, hence not a short squeeze. In fact, this particular situation is still very much ongoing, and we will ultimately see the final short squeeze happening at some point in the future (most likely tomorrow, according to sources familar with the matter...) Nonetheless, it is an important example to note, as shows the potential for what could happen with even the threat of a short squeeze, and the price may have gone into the thousands without Wall Street criminality causing an abrupt ending. Nonetheless, the price increased by a factor of 194x, which in $BBBY terms would result in a price of $213 per share. See below my post below to experience the 'real time' effect of the squeeze:

https://www.reddit.com/r/BBBY/comments/114kouu/many_of_you_enjoyed_my_previous_sharing_of_the/

DIAC and Dual

The final example I want to give is not from the US at all, with its corrupted protection of Wall Street, but South Korea where financial regulations seem to applied as they should be. Hence to show you how a "true" short squeeze could play out, free of government intervention or criminality, see this article below referenced in my previous DD on the potential effects of non-Cash M&A deals:

https://www.ft.com/content/cc21e7b9-f931-4481-a82b-4ed892aa9e10

https://www.reddit.com/r/BBBY/comments/ynw6ik/i_see_many_postscomments_with_a_fundamental/

Both stocks here experienced enormous short squeezes, for DIAC leading to a 70x price increase on Short Interest of only 5%. A similar price surge for $BBBY would result in a price of $77 per share.

But let me save the best for last: Dual's short squeeze from the same M&A saw the price increase by 1500x. Yes, you read that correctly - one thousand five hundred times. A wise man once said that "in an infinity squeeze, no one can hear you scream". If $BBBY experienced a Dual-sized short squeeze, that would mean a final price of $1650 per share.

TL;DR

So, there you have it. Ten different examples of short squeezes, which resulted in at least 10x price surges. They had various kinds of factors as triggers, ALL of which are very much in play for $BBBY right now. These are examples from just the last 3 years, meaning on average there are massive short squeezes happening every few months so far this decade. As far as I am aware, we have not seen a "ten bagger" up to now in 2023...so no doubt, at least one is becoming due...

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Reddit
reddit.com › r/wallstreetbets › $bbby - short squeeze imminent
r/wallstreetbets on Reddit: $BBBY - Short squeeze imminent
April 23, 2018 -

Bed Bath & Beyond is a legacy retailer that is written off. 61% of the float is short this stock.

They got a new CEO Mark Tritton end of last year. Mark Tritton transformed Target - TGT went from 50 to 176. He is doing it again at BBBY

They sold lot of non-core stuff - sold personlizationmall.com, one kings lane, christmas tree shops, etc - the company went from 1.2B in debt to 200m in cash. They have also done a lot of changes to improve the business like reduce inventory, add omnichannel support, beyond+ - like prime, etc. The company posted positive comps. ** There is a 170 page investor day presentation to see all the changes have done and will be doing **

It trades dirty cheap - 9B+ in sales, 900m in profit expected. 2.34B market cap. 200m net cash.

They have a $825m share buyback going on (upsized from $650m) ! Large part of this is Accelerated Share Repurchase (short term). Remember 61% short - this ASR is bound to kill shorts !

All hail Lord Tritton 🙇

Position: https://imgur.com/a/c8kuu3H

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Reddit
reddit.com › r/shortsqueeze › i just want to understand about $bbby
r/Shortsqueeze on Reddit: I just want to understand about $BBBY
March 1, 2021 -

So all I hear is a short squeeze and that everyone who buy now will laugh at the increased price of the share later. I am totally fine with the share going up and I have my self bought a lot of shares. I just don't understand all the shill about certain dates and what not.

$BBBY is dipping down every day except the last monday last week. Other than that it have falled down heavily. Now my average is very good and I am thankful for that, but to be realistic about this, when could we se a run up? When could a short squeeze happen?

At this moment, this shit makes no sense to me. All I see is shill and if anyone talks bad about $BBBY somewhere, then an internet army of trolls will come with attack lol.

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Reddit
reddit.com › r/wallstreetbets › the bbby short squeeze starts now 🚀🚀🚀 earnings were not a disaster, and bbby is about to burn the shorters with buybacks
r/wallstreetbets on Reddit: The BBBY Short Squeeze Starts Now 🚀🚀🚀 Earnings were NOT a Disaster, and BBBY is about to BURN the Shorters with Buybacks
March 24, 2018 -

TLDR: BBBY missed earnings estimates, but if you listened to the earnings call, metrics and guidance are much better than shorters say. The stock is poised to rally back to october highs with guidance, buybacks, and a SHORT SQUEEZE

  • Short interest is still extremely high at 76% and earnings were honestly strong

  • Jim cramer - "shorts are trying to control the price right now" but he talked with the CEO and the company looks great

  • He thinks it has much more room to grow and is AMAZING value

  • 150 million in buybacks coming before february 29th

  • strong guidance from earnings

  • Bigger stimulus from biden

  • YoY growth was HUGE with a gain of .08 EPS vs -.38 EPS last year

Buybacks:

With an accelerated repurchase program, BBBY is buying back 150 MILLION dollars in shares (7 million shares) before February 27th.

Strong earnings and buybacks will kill shorts over the next month, and BBBY will continue climbing.

"Failed" Earnings:

Here's an excerpt from the "failed" earnings calls that shorts want you to believe was horrible

Mark Tritton:

Simply put, we're delivering on what we said we would do. We said we would put a team in place that would have the right talent and expertise to execute our new vision and inject new ideas and that we will create the right organizational structure to facilitate more streamlined decision-making, and we've done that. We said we would lean into the digital space and make it easier and more convenient for our customers to shop with us, and we are doing that. We said we will reset our cost structure, modernize for growth, and refine our organization, and we've done that and continue to focus on gross margin improvement.

We said we had a clear mandate to reestablish our authority as the preferred omnichannel home destination and that we would use customer-inspired and market insights to develop our new customer value proposition, and we are doing that. We said we would evaluate our asset base and how best to optimize its value to the business on a go-forward basis, and we have done that. And finally, we said our mission is to ensure that Bed Bath & Beyond is well-positioned for long-term success, and we're doing just that.

- EBITDA up 300% YoY

- Digital sales up 69%

- Debt lowered

BBBY gives me GME vibes after earnings. Belittled by shorts before it moons.

The stock still has tons of room to go. Christmas earnings and stimulus checks are coming and shorts are panicking. Ride this stock to 25$ or even higher

Positions: 1000 shares, 25 Feb 19 C, 25 March 3/19 C

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Reddit
reddit.com › r/wallstreetbets › bbby short squeeze thesis
r/wallstreetbets on Reddit: BBBY Short Squeeze Thesis
May 4, 2018 -

Outstanding shares of BBBY are about 125 million. Of this about 18 million shares they are buying back under accelerated share repurchase program. From the remaining 105 million shares about 72 million shares are sold short, that's almost 70% of the total float. It will take 10 full trading days to cover it. It is the 4th highest among all shorted companies. And the final nail on the head, company is reporting earnings on 7th Jan. My retard brain decided to buy boat load of Jan 15 calls. They are cheap and highly liquid.

Do whatever you like to do with this info.

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Reddit
reddit.com › r/wallstreetbets › on the topic of the 'bbby short squeeze'
r/wallstreetbets on Reddit: On the topic of the 'BBBY Short Squeeze'
November 2, 2020 -

To my fellow highly regarded investors,

The ticker, BBBY, is a very volatile and dangerous stock to buy at this time. As the SEC Says, you should not listen to folks on the internet and never should buy things such as, 'Meme Stocks'. There is also no such a thing as 'short squeeze', the market was built on the backs of the working class and is made for YOU to be successful.

Please be careful with your money. I have taken it upon myself to prove to you this is a bad investment. I have invested $100,000 into stock and an additional $20,000 into calls that expire next friday. Please learn from this very bad stock play.

Your fellow highly regarded investor sends his regards.

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Reddit
reddit.com › r/bbby › tomorrow is the short squeeze you were waiting for
r/BBBY on Reddit: Tomorrow is the Short Squeeze you were waiting for
July 8, 2022 -

This is the short squeeze that you were waiting for when you bought this stock. Shorts trying to cover and no one selling it’s exactly the setup we wanted!!

Tomorrow morning is when all the shorts are going to sell and if you panic on this C/11 and sell is when they win.

With a C/7 they will be free but with a C/11 now we are the ones on charge.

You wanted a short squeeze right? HODL!! Don’t let them cover!

Find elsewhere
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Reddit
reddit.com › r/wallstreetbets › the ultimate $bbby short squeeze strategy that won’t cost anything
r/wallstreetbets on Reddit: The ultimate $BBBY short squeeze strategy that won’t cost anything
December 24, 2019 -

Listen up regards, here is the ultimate $BBBY short squeeze strategy. One week before the next $BBBY earnings buying everything you can buy at a bed bath and beyond. In fact, MAX out your god damn credit card! This will result in $BBBY gapping up to the moon on their next earnings report and causing shorts to cover! Make sure to keep your receipt, so you can return everything the week after they report earnings. And then load up on puts for their next earnings! Rinse and repeat

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Reddit
reddit.com › r/bbby › short squeeze aside, an analysis of events since sue's appointment
r/BBBY on Reddit: Short Squeeze aside, an analysis of events since Sue's appointment
December 27, 2020 -

Short Squeeze aside, lets look at the whole situation from Sue's perspective.

Sue was appointed interim CEO in June 2022 and officially took over the role in October 2022.

She inherited an absolute disaster of a balance book with increasing debt, negative cash flow, and falling share prices thanks to the brilliant billion dollar share buy back by Tritton.

I imagine Sue was cursing under her lips and wishing for those billions of dollars back but what can she do. Her sole mission is to turn the company profitable and start building equity again, that's the only way to fight the falling share prices. However, she is fighting against time, time she needs to make the turn around plan. With almost no cash left in the bank, she has to navigate inventory, supply chain, paying employees and all MSM hit pieces.

However, there is a winning recipe, the example set by Jimmy. So she starts trimming the fat, closing unprofitable stores, invest in supply chain, establish a reward program, and focus on e-Commerce. Literally a play-by-play from Jimmy in the past 2 years.

Now all these transformative changes require time and money. Time is easy as long as BBBY still has money, but they don't. Now you may ask, why not just sell shares to raise money via a ATM? Well, I'm sure the board knows that there are many enthusiastic investors who are in this play for a quick profit. Selling shares ATM will kill any potential of a short squeeze if not timed correctly. So they turn to APL to finance a cash loan to buy more time.

Just like that, they survived Q4, but cash keeps running out. Now they need more. How do you keep the shorts on the hooks while raising money? You need a buyer to inject cash who will not sell their shares to not dilute the public float. However, the amount of shares required to raise the money needed will lead to significant ownership of over 19.99% which may risk a hostile take-over or 5% requiring SEC disclosure which will reveal the playbook. So they came up with the convoluted preferred shares offering to by-pass the above.

Now, why do the offering in a cyclical manner instead of all at once? Because every time the total share outstanding increase, the number of shares representing 5% also increases. Who exactly own all these conglomerate of 4.9% shares through HBC we will never know. (I dream of a world with a lot of Icahn and Cohen Jr's running around with a bunch of shares in their names but I digress)

You may ask, how do we know that HBC didn't just sell the converted shares into the public float? Well, I guess we will never know. But if that was the original intent then why go through a middle man who takes a 8% cut when BBBY can just sell at market price and take 100%? Also despite the deal being inked over a month ago, the public float remains the same on all platforms, only the total share outstanding has changed.

The whole saga of cancelling the HBC deal and now doing a 300M ATM + 1 billion share sale to BRS is even more bizarre. But still aligns with the thesis that BBBY needs cash in a way that does not dilute the public float to allow for short closing. If structured correctly, this could be possible. Again, Sue isn't omnipotent. She is trying her best but she can't read minds nor control for the action of every bad players out there. Could HBC and BRS both be wolves in sheep clothing? Possibly.

At the end of the day, short squeeze or not, as long as this company survives the turnaround, there is massive upside in this play itself. Now where does this sound similar again? That's right, Jimmy was the exact same outlook in late 2020 early 2021.

I'm in this to the bitter end or moon with 15k shares. Peace.

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Reddit
reddit.com › r/bbby › is $bbby a short squeeze or a long play?
r/BBBY on Reddit: Is $BBBY a Short Squeeze or a long play?
May 11, 2020 -

u/Meowsergz requested a Tl;Dr Stupid hedgies shorted stock that had been run into the ground by 6-8 years of gross possibly negligent mismanagement. Reddit tards noticed that stock just won't die no matter how terrible management is, saw deep value, and started YOLOing. Shorts will now be squeezed by EOY like a certain other meme stock around this time exactly 1 year ago. Tards are right, stock is deep value with many different ways to get out of danger zone and absolute Chad RC himself taking the reins.

Edit: I wrote this last night after work so I've made quite a few errors which I will correct moving forward. However, I think I did get my point across well enough. I will list the error and their corrections directly below as well as in the body of text.

Edit 2: Follow me, don't follow me IDGAF. This is not financial advice and shouldn't be treated like it is. Do your own Due Diligence.

Edit 3: Other corollaries I might look into for future Due Diligence on BBBY

-GME and BBBY stock buyback leading into pre-squeeze market conditions

-Business strategy(ies) BBBY might employ with specific case examples from other companies in similar situations and their outcomes to weigh BBBY's probability of success

Error 1: u/Patient_Atmosphere45 pointed out my calculation for what an exit price might look like at this point in time is wrong. I calculated it based on the assumption of $1 is worth 2.81% current of the stock price instead of the correct 7.72% figure they gave. Which raises the exit price from $36.81 to $213.72 per share. An almost 6-fold increase in exit price, this is going to be one hell of a ride.

Error 2: u/DarthRedcrosse , u/kyleL2P , u/2718281828459 all pointed out that I falsely pushed Insider Form 4 filings as Executive Officers purchasing stock. I was wrong in my analysis of that which just proves my point that I am also rehtarded which makes me right. Form 4 Filings are now mentioned anecdotally with the evidence now focused on Institutional Holders and verified Insider Purchases and HODLs in the past couple months. Also, as u/donedrone707 pointed out the Norwegian Sovereign Wealth Fund did/does have significant holding in both GME and BBBY. I doubt Norwegian's are gonna start screaming at their Government to YOLO but who knows.

Positions: Currently I have my gas/grocery money for August put into this BBBY stock at 9.46 Cost Basis for 60 shares and will be YOLOing ~90 more shares Monday morning after the dip and HODLing until stock hits 213 or stabilizes long term at 199.

"Which is it?? Tell Me!- r/BBBY autists probably

The Answer: Both! Neither! IDK why are you asking me I'm subbed to that goddamn cesspool.

Now I know you tards have been to hell and back hearing about $BBBYs fundamentals and how similar this squeeze looks to GME pre-moon, so bear (get it) with me.

The way I see it we have two possibilities. 1, $BBBY is your friendly local crackhead that screwed over friends and family for as many Ice Cubes they could get their dirty fuckin’ hands on and are now hyping the shit out of their “recovery” to get one last throw of the dice. If that is the case its fantastic because there is still lots of money to be made. 2, $BBBY is a fantastic value investment with a promising long-term outlook that will kick off with a massive short squeeze. Possibility 2 is what rehtards mean when they say that $BBBY is identical to $GME pre liftoff. AKA why I'm buying and HODLing

*Disclaimer: Read at your own risk this is a lot for you apes to handle so make sure you are sitting in a cool body of water or have a large bucket nearby. If you feel light-headed or your vision starts narrowing dump the water on your head.

Possibility Numero Uno

Dave Chapelle teaches the dangers of shitty management and capital misallocation to a 5th grade class

Before I explain why you are a dumb simple ape for not buying in at $7,8,9,10,11,12,13,... dollars read this. Did you read it yet? Yes? Good. Now because you definitely already read it you understand that the GME squeeze was the craziest fucking thing to happen since RC's dad squeezed him out of his nuts. This is not to say that BBBY can't get there because it can and will. However, there are levels to this shit and GME was S tier (weebs loved that one).

Obligatory Crayon Drawing for BBBY

GME Short Data from post you ALREADY READ

If you needed proof, here is the comparison of short data from BBBY vs. GME. Despite a massive difference in interest between BBBY and GME BBBY's cost to borrow from Jul 25- Aug 11 has increased 1.81 times.

7.96/4.39=1.81

Yes you are correct that is a large jump. All the rehtards out there will point to the itty bitty increase in cost to borrow relative to increases in short interest and shares on loan at the end of the graph. However, we smart apes don't care about that. Why you ask? Because that is the wrong time frame to look at. Yes you. You beautiful soul you, look at MASSIVE jumps in all aforementioned data categories from Aug. 24th- Sep 28th. The cost to borrow over a similar time frame for GME Aug 24- Sep 7 increased by 2.05 times.

12.54/6.1=2.05

Over the larger time frames of Jun 28th- Aug 11th and Aug. 24th- Sep. 28th of BBBY and GME respectively we see further correlation between cost to borrow increases.

BBBY: 7.96/1.52=5.24 fold increase over 44 days

GME: 36.84/6.1=6.04 fold increase over 35 days

Well why does cost to borrow matter? It matters because one time I saw someone in the comments of a reddit post a couple of years ago said that it does. Cost to borrow is determined by the average annualized percent of interest from Prime brokers to hedgies (gotta love C+P). Basically, as short interest increases borrowers must pay more to short sell a stock. It is a corollary to how much the stock is being shorted. If the cost to borrow is going up while the stock price is going up someone is about to get fucked harder than an 18 year old with daddy issues on a black leather couch.

Huge fan of piercing people on screen, Sean Bean, tells you what is good with a certain stock

Great dipshit we know the stock is gonna get squeezed just tell me where to get out.

Ok, ok, I hear you. Using the tried and true GME price exit calculator. This equation is derived from multiplying the current stock price by 1.0281 1.0772 raised to the power of shares shorted (in millions).

12.95*1.0281^37.7= $36.81 per share

12.95*1.0772^37.7= $213.72 per share

**this number is subject to change as new data about Short Interest comes in (read increases) and as FOMO buying drives the stock up without shares closing positions

***this equation is from a reddit post so just like anything else you see on reddit it is probably real

I feel that $36 is still far too low due to the Ryan Cohen rule. It is far too low based on the new and improved math! The RC rule still holds true. For those unfamiliar with the rule it states the following: bet against Ryan Cohen and his $80C options and he will knock you out and fuck you until you wake up.

Get the memo?

There are a million other reasons why this shit is going to pop so here they are listed briefly.

  1. As previously mentioned the shares that are able to be shorted are decreasing over time.

  2. The stock is currently trading at a deficit to its intrinsic value estimated at $15 for time being.

*More importantly BBBY is currently trading at a massive deficit to its competitors

**this will come up later

- TGT's current price is $172.48

- HD's is $314.89

- LOW's $206.47

- TJX is $65.47

3. $BBBY is near its 52W low before accounting for FOMO buying

4. Upcoming major catalyst in reference to the new strategy outline expected to be released EOM

5. Previously mentioned short volume and interest increasing with cost to borrow

6. Retail sentiment up and retail investors ponying up their life saving and YOLOing it

Retail sentiment through the roof

Tards doing TA

Tards making crappy Excel sheets "short squeeze was initiated when price rose to 6" *rehtard noises*

-for clarification the squeeze will initiate when when I say so or when hedgies over leverage their position again and again and again. which they have been doing

little guys are getting involved

Whales too

this Chad goin in with a loan

7. Institutional and Insider money pouring in

CGO,CCO still filing Form 4 with SEC and not selling stock immediately means executive officers of company have faith

4 most recent Insider transactions

All the Institutions in the SC below

Notice overwhelming green?

Some of the State Retirement and Pension Funds (these are the small ones)

-Arizona State Retirement Fund- 26.11k shares

-Alaska Permanent Fund- 22.54k shares

-Oregon Public Employees Retirement System- 26.13k shares

-Maryland State Retirement and Pension System- 32.35k shares

The following are a few National interests in BBBY

-The Royal Bank of Canada purchased 9.73k shares March 31st of this year- 15.9k shares total

-Norges Bank Investment Management (Norwegian Central Bank) aka the big dick swinging Norwegian Sovereign Wealth Fund-199.03k shares

-Swiss National Bank-227k shares

Abigail Johnson, the CEO of Fidelity investments does this. Looking to make a little Cashola?

-Apparently she is paper hands af, and Fidelity cashed out. All in all not an issue since retail has no doubtably filled their shoes.

Last but not least FCM capital owns ~6% of the company and issued a letter to the board and issued a letter to the board on July 21st.

This brings me to my belief that BBBY is a good value buy and long term HODL.

Possibility Too (yes I am a Rehtard two)

Operating under the assumption that everything above is true and everything I say is always right then BBBY is criminally undervalued. The latest price movement is due to FOMO, a good thing cos it brings it closer to its intrinsic value, but if not for FOMO the shorts would have the price back at $4.

So what is a fair price for it going forward?

To calculate that we need to find the ATH for the market cap. For this we multiply the number of outstanding shares at ATH price by the ATH stock price

Since the furthest back I could find outstanding share values at was Aug. 27 2016 I will calculate the ATH market cap from that date *because of this the estimated future fair price is severely underestimated*.

154462206.0*45.45=7.02 Billion

Now to find the fair price going forward we divide the ATH market cap by current market cap and multiply by the current share price.

7.02/1.04=6.75 6.75*12.95= $87.4125 per share

$87 you say? That is a lot of money.

Yes it is fellow ape, interesting how it also puts RC's $80C ITM. Ok, but what if $12.95 is not its current intrinsic value? Well again these numbers are very conservative since we can't use the ATM market cap but Im glad you asked. This article from June 12 estimates the current intrinsic value to be $11.10 based on the Discount Cash Flow formula. (read the article for a summary of what that is and the formula used to get that number)

if we use the same formula from above we will get a share price of $74.925 before adjusting market cap accordingly

6.75*11.1=$74.925 per share

to adjust market cap we will multiply outstanding shares by the lower share price of 11.1

79900000*11.1=886890000

then divide ATH market cap by adjusted market cap

7.02/.88689=7.91 7.91*11.1=$87.85 per share

back up to $87. BEFORE adjusting for inflation. Adjusting for inflation we see the low fair price is $99.84.

87.4125*1.0224^6=$99.84 per share

Again this is on the low end since the true ATH we should be basing the calculations on is in 2014 at $80 (I can't find the outstanding shares for that date but I haven't even looked for them cus I feel this is plenty of work as is).

keep your fucking opinions to yourself Bear

But seriously though, what do the bears say?

  1. BBBY is going bankrupt!

yea that's right kiss it before you suck it Donald

Wrong! Hang on coz this is a three parter.

First, did you even read the Ryan Cohen rule you stupid goddamn bear? No. You clearly didn't. Go read it before he comes for you. Never underestimate his ability to fuck over hedgies and dominant market firms. After his recent escapades with GME he set his sights on BBBY, that is no accident. People with billions of dollars at their personal discretion typically don't spend it rashly.

Two, worst case scenario Bed, Bath, and Beyond is bankrupt in 2024. However, with 25% of their total revenue already coming from online retail in 2021 (can't find 2022 data) I see no reason why the new leadership can't work some retail magic online and bolster these stats. Furthermore with hopefully little buyback of stock left to do they can focus capital on other more important ways.

Three, Freeman Capital Management's proposed debt reallocation and capital raising. Essentially the senior debt of BBBY will decrease by a little over half a billion dollars. This debt re-structuring would raise 1 billion dollars (with a B!) and make it a more attractive future investment.

Need I say more?

One thing in particular to note is that Freeman Capital is the owner of BBBY's senior unsecured notes maturing in 2024.

Brief overview of FCM proposed Debt reallocation+Capital raising

Here is the link to the full Form 13G Filing with 6.21% of common stock (only a couple million $ nbd) with Jake Freeman's letter to the board on how to proceed wit fund raising and shifting of debt.

2. Brick and Mortar stores are dead Amazon is King!

Wrong again dumb bear. Wrong again. Bad Brick and Mortar stores are dead but good ones are alive as ever. Look at Target, or Lowe's, or TJ Maxx, or Home Depot, or Walmart, getting the fucking point? Furthermore if you ever get bored look at the story in r/Amazonhorrorstories or just fuckign scroll around other subreddits. The Amazon loathing is festering like a nasty case of the clap. Yes Amazon is a convenient purchase. Wanna what else is convenient? Getting to see and feel the product in person before spending money on it. Getting to talk to a person face to face if you need to return something.

3. Hedgies have more money than you!

Yes they do bear. But hedgies don't have more money than millions of dollars in purchasing power thru retail investors, Ryan Cohen, BBBY executives, institutional money, and these fucking nuts! Don't believe me? Boom! If you can't read it you're too poor to have an opinion bear. "

The above is an excerpt from a conversation I had with a real person. It is not in any way financial advice.

Honestly at this point I feel like this is too much info to absorb in one post. I will be making follow-up posts to further elaborate.

As Mike Tyson would say

Peace Bithches

edit *: you better upvote the shit out of this. this is the best DD I've seen on this sub

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Reddit
reddit.com › r › BBBY › comments › wir7lp › bbby_the_short_squeeze_and_gamma_squeeze_play
r/BBBY - BBBY, the Short Squeeze and Gamma Squeeze play
August 31, 2019 -

Varying sources will have different data. As we all know, Yahoo Finance has the Short % Float as 101.6%. Yahoo has the float defined as: " A company's float is a measure of the number of shares available for trading by the public. It's calculated by taking the number of issued and outstanding shares minus any restricted stock, which may not be publicly traded. "

While Yahoo also has Short % of shares of 35.72%, which is the percentage of TOTAL shares available, including those that are held by insiders etc. Yahoo gets its short information from Morningstar Inc. https://finance.yahoo.com/quote/BBBY/key-statistics?p=BBBY

Where does Morningstar Inc get its information from? According to an Form-8k, Morningstar states " We collect most of our data from original source documents that are publicly available, such as regulatory filings and fund company documents. This is the main source of operations data for securities in our open-end, closed-end, exchange-traded fund, and variable annuity databases, as well as for financial statement data in our equity database. This information is available at no cost. " Source: https://www.sec.gov/Archives/edgar/data/1289419/000110465906031591/a06-11178_28k.htm

Now another popular source is Fintel, ranking BBBY as the #2 stock for a Gamma Squeeze. What is a Gamma squeeze? According to Fintel, "A Gamma Squeeze is a specific event that happens when the price of a stock climbs suddenly due to actions in the options market". Source: https://fintel.io/gammaSqueeze

While Fintel also has the short interest % float as 41.12%, its source is Nasdaq (https://fintel.io/ss/us/bbby). Nasdaq states "Each FINRA member firm is required to report its “total” short interest positions in all customer and proprietary accounts in Nasdaq-listed securities twice a month. These reports are used to calculate short interest in Nasdaq stocks." As we know, the Nasdaq exchange is not the only short positions created.

Another source, reveals that BBBY is the #1 stock with the highest short interest: https://highshortinterest.com/. What is short interest? Short interest is the number of shares that have been sold short and remain outstanding. Where do they get their information from? " HighShortInterest.com provides a convenient sorted database of stocks which have a short interest of over 20 percent. Additional key data such as the float, number of outstanding shares, and company industry is displayed. Data is presented for the Nasdaq Stock Market, the New York Stock Exchange, and the American Stock Exchange. You can view the data for all exchanges together or only view exchanges of interest by clicking on the appropriate tab. " This source also had GME as the #1 stock during the run to $350+.

TLDR; Short % FLOAT, Short % SHARES, and Short Interest are all different statistics. Sources such as Fintel has BBBY ranked as #2 for a Gamma Squeeze, while other sources has BBBY ranked #1 for Short Interest. How can there be such disparity between sources? That's for us (and you) to figure out.

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Reddit
reddit.com › r/bbby › bbby short squeeze: how high will it go?
r/BBBY on Reddit: BBBY Short Squeeze: How High Will It Go?
December 4, 2019 - GME and BBBY may be just that. ... Pfft. $250 is nothing. Then he recommends using Robinhood. ... There is nothing wrong with getting some more FOMO in on the play. We are here for a longer play but having some help to initiate a Gamma squeeze is not a bad thing.
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Reddit
reddit.com › r/wallstreetbets › $gme - $bbby short squeeze comparison
r/wallstreetbets on Reddit: $GME - $BBBY Short Squeeze comparison
April 21, 2022 -

I made this quick comparison on Excel between current BBBY squeeze and GME one occurred in Jan 2021:

The red arrow identifies where we are, the blue digits the expected numbers of the upcoming week, assuming same price change of GME since day 1 of the squeeze start.

If we rely on these numbers, next trading week will be WILD...

EDIT: Thanks for the lot of interest in this post. I've added also the chart with price trend based on days since start of the Short-Squeeze.

Source: NASDAQ historical data

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Reddit
reddit.com › r/wallstreetbets › bbby short squeeze summary
r/wallstreetbets on Reddit: BBBY Short Squeeze Summary
November 6, 2020 - Anyway bro you make money on like a short position if a stock goes down in price. IKNORITE???! That doesn’t make sense bro but it’s real bro. So like BBBY had like a lot of people doing that okay, and also bro like these dudes with a lot of money called hedge funds like have a lot of these shorty spice positions okay bro and like to make money they have to close.
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Reddit
reddit.com › r › wallstreetbets › comments › k5mept › bbby_another_fat_girl_ready_for_a_short_squeeze
r/wallstreetbets - BBBY: Another fat girl ready for a short squeeze
January 15, 2021 - Was huge cock big bull on BBBY. Bought a big position in it around 6.50 per share. I have a PT of around 32 for the stock price and believe it will hit that mark within the next 2 months ... You guys are all mistaking the difference between a short squeeze and an infinity squeeze.
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Reddit
reddit.com › r/shortsqueeze › i believe bbby will be the next big short squeeze
r/Shortsqueeze on Reddit: I believe BBBY will be the next big short squeeze
April 21, 2020 - But, this is a squeeze sub... The bigger the interest the bigger the boom. Ryan Cohen placed a big bet on his calls. The irony is, his investment in BBBY, stripped him of his billionaire title. Until there is news released, this is a short opportunity for a day trader with a stop loss.
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Reddit
reddit.com › r/stockmarket › bbby stock: what is bbby short squeeze price prediction as short interes...
r/StockMarket on Reddit: BBBY Stock: What Is BBBY Short Squeeze Price Prediction As Short Interes...
June 8, 2020 - Sell and cut your losses before they go bankrupt. BBBY is dead af, was an amazing play last year with the hype but they kept diluting.