Discover and read the best of Twitter Threads about #bbby
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WSJ reporter @GunjanJS writes, "When #BBBY filed for bankruptcy, it had a gaping hole in its financials: assets of $4.4b and liabilities of $5.2b," but are these numbers currently accurate?
This post looks into two strategies which create net-positive value for shareholders.
This post looks into two strategies which create net-positive value for shareholders.
To begin, these figures were reported in FY22 Q3 earnings for the period ending Nov 26th. Much has changed in the six+ months since.
These figures will not include $360m in equity capital from the Feb securities offering, nor the assuredly negative cash flow from operations.
These figures will not include $360m in equity capital from the Feb securities offering, nor the assuredly negative cash flow from operations.
The first category to address is the company's net operating losses (NOLs).
From bankruptcy docket #10 filed on Apr 23rd, "As of the end of February 25, 2023, the Debtors estimate they had NOLs in the amount of approximately $1.6 billion..."
From bankruptcy docket #10 filed on Apr 23rd, "As of the end of February 25, 2023, the Debtors estimate they had NOLs in the amount of approximately $1.6 billion..."
From the introduction to the book ‘King Icahn’ by Mark Stevens,
“Icahn had built a position in a company, then traded over-the-counter, to the point that he owned a substantial block of the outstanding stock.” #BBBY
“Icahn had built a position in a company, then traded over-the-counter, to the point that he owned a substantial block of the outstanding stock.” #BBBY
“Convinced that he had made a forceful case for reconfiguring the business, Icahn paced like an expectant father, waiting for what he hoped would be a favorable response to his plan.”
“Investment banker: ‘You know, Carl, they don't like you at all.’”
“Investment banker: ‘You know, Carl, they don't like you at all.’”
“‘I don't want to threaten you but we are going to begin by smearing your name. We've got three PR firms. We've got the best three PR firms in New York. Starting tomorrow, we are going to start smearing your name...”
Debt is the New Equity: A look into Sponsored Buyouts in Chapter 11 and recent events surrounding Bed Bath & Beyond including volume in the company's bonds and the appointment of Holly Etlin to Chief Restructuring Officer. #BBBY
This six page Kirkland and Ellis paper (2009) details Sponsored Buyouts and the Plan Sponsor Transaction through Chapter 11 bankruptcy proceedings. The following quotes will summarize the paper, but it's worth a full read.
Source: kirkland.com/-/media/public…
Source: kirkland.com/-/media/public…
The Day After Bankruptcy, La Fin:
On Mar 30th, Bed Bath files $300m ATM offering to be completed Apr 26th or face bankruptcy. The funds would close the ABL w JP Morgan 3 years before maturity. Any acquisition requires JPM approval, except in chapter 11 proceedings. #BBBY
On Mar 30th, Bed Bath files $300m ATM offering to be completed Apr 26th or face bankruptcy. The funds would close the ABL w JP Morgan 3 years before maturity. Any acquisition requires JPM approval, except in chapter 11 proceedings. #BBBY
The $300m ATM offering Mar 30th states,
"Upon filing our annual report Form 10-K, which is due by April 26th, 2023, we will lose S-3 eligibility and therefore we expect all sales made pursuant to the sales agreement will cease by April 26th, 2023...
"Upon filing our annual report Form 10-K, which is due by April 26th, 2023, we will lose S-3 eligibility and therefore we expect all sales made pursuant to the sales agreement will cease by April 26th, 2023...
…If we do not receive the proceeds from the offering of securities covered by this prospectus supplement, we expect that we will likely file for bankruptcy protection."
5 Days to Bankruptcy: Cohen argues a multi-billion $$ valuation of BABY as the Ultimate Destination for Babies. He sells his Bed Bath position in Aug at the start of M&A negotiations. His letter suggests his willingness to hold the board accountable. #BBBY
"Given that BABY is estimated to reach $1.5 billion in sales in Fiscal Year 2023 with a double-digit growth profile and at least 50% digital penetration, we believe it is likely much more valuable than the Company's entire market capitalization today."
($1.6b at time of writing)
($1.6b at time of writing)
"We believe under the right circumstances, BABY could be valued on a revenue multiple, like other ecommerce-focused retailers, and justify a valuation of several billion dollars."
The math presented in the following tweet assumes 550m shares outstanding at Bed Bath.
The math presented in the following tweet assumes 550m shares outstanding at Bed Bath.
9 Days to Bankruptcy: Jake Freeman announces ownership of 2024 notes and 6.21% equity stake in Bed Bath & Beyond on July 21st, proposing a bond issuance to raise cash while opposing a sale of the company or a significant amount its assets. #BBBY
"Freeman Capital advocates for a debt realignment that does not change or affect the control. BBBY's effective realignment is a top priority for Freeman Capital and is made in the context of a disinterested shareholder-"
"Freeman Capital does not advocate for a sale of BBBY to another company, Freeman Capital does not advocate for the sale of a significant amount of the issuer's assets, Freeman Capital does not advocate for the restructuring of the issuer..."
Bloomberg reported Sunday, "Bed Bath Begins Three-Week Countdown to Possible Bankruptcy". I'd like to celebrate our final days to April 26th w a daily discussion of various topics hinting at the latest corporate raid of @Carl_C_Icahn
Day 22: What is JP Morgan Chase Doing? #BBBY
Day 22: What is JP Morgan Chase Doing? #BBBY
"On or around January 13, 2023, certain events of default were triggered under the Company’s Credit Facilities (as defined below) as a result of the Company’s failure to prepay an overadvance and satisfy a financial covenant, among other things."
Source:
bedbathandbeyond.gcs-web.com/node/16871/html
Source:
bedbathandbeyond.gcs-web.com/node/16871/html
Why didn't JP Morgan seize assets right then? What kind of sophisticated investment bank issues default on a company with a 'Going Concern' and doesn't immediately collect on it's loans? Bed Bath owed JPM $550m on its Asset-Backed Loan as of Nov 26th (as reported in the default)
This is the 3rd 🧵in a series on #BBBY.
This installment examines why the company may be on the precipice of acquisition and why a spin-off of buybuyBABY is likely.
1. Politics, Antitrust, Icahn & RC's 🎈
2. Antitrust, Board Interlocks & Newell Changes 🍏
3. Spin a Baby 👶
👇
This installment examines why the company may be on the precipice of acquisition and why a spin-off of buybuyBABY is likely.
1. Politics, Antitrust, Icahn & RC's 🎈
2. Antitrust, Board Interlocks & Newell Changes 🍏
3. Spin a Baby 👶
👇
Previous threads are linked here. It's important to read them first for crucial context:
1. bit.ly/40aACKI
2. bit.ly/3napzCO
Legal disclaimer next, content follows.
1. bit.ly/40aACKI
2. bit.ly/3napzCO
Legal disclaimer next, content follows.
Note: none of my tweets should be construed as legal, tax, financial, or investment advice. I'm sharing my personal research as an individual investor for educational purposes.
⚠️ INVESTING IS RISKY ⚠️
I hold a BBBY position because my personal risk tolerance is off-the-charts.
⚠️ INVESTING IS RISKY ⚠️
I hold a BBBY position because my personal risk tolerance is off-the-charts.
Really solid article here discussing Section 8 of the Clayton Act and why, even if BBBY+NWL meet the de minimus sales loophole (2% of revenue or less), regulators might still demand Brett step down from the Newell board to allow Icahn #BBBY M&A.
foley.com/en/insights/pu…
🧵👇
foley.com/en/insights/pu…
🧵👇
"The essence of these safe harbors is that an interlock will not be prohibited if the two corporations only compete for a small portion of business … In practice … safe harbors are sufficiently complicated … that they should not be relied upon without a detailed analysis."
Despite BBBY's accounting for < 2% of NWL's revenue preventing an Icahn NWL/BBBY board interlock, regulators could have standing to ask for more concessions.
In the previous thread (linked below) we covered the FTC, politics, Carl Icahn, and made a speculative connection to a certain person's 🎈
I had planned to go into #BBBY next, but we got a MASSIVE $NWL filing yesterday that accelerated the timeline.
👇
I had planned to go into #BBBY next, but we got a MASSIVE $NWL filing yesterday that accelerated the timeline.
👇
Note: none of my tweets should be construed as legal, tax, financial, or investment advice. I'm sharing my personal research as an individual investor for educational purposes.
⚠️ INVESTING IS RISKY ⚠️
I hold a BBBY position because my personal risk tolerance is off-the-charts.
⚠️ INVESTING IS RISKY ⚠️
I hold a BBBY position because my personal risk tolerance is off-the-charts.
Our previous thread discussed how today's FTC is increasingly hostile to M&A activity. In order to understand WHY the 3/15 $NWL filing is so important for potential #BBBY M&A, we need to go in-depth on exactly HOW the FTC has changed its enforcement focus over the past two years.
Possible #BBBY M&A is heavily dependent on the FTC (and the requisite HSR consent).
As a result, it's important to understand the commission's make-up and attendant political implications.
With this background we can seek out circumstantial clues pointing to M&A activity.
👇
As a result, it's important to understand the commission's make-up and attendant political implications.
With this background we can seek out circumstantial clues pointing to M&A activity.
👇
The FTC has 5 commissioners. The sitting US President nominates commissioners when a vacancy arises and the Senate approves nominations. Partisan effects are (theoretically) limited by statute; no more than 3 members from a single party may sit on the commission at one time.
Commissioners serve 7 year terms (unless they resign). Historically, it's *generally* the case that FTC commission Rs are more friendly to M&A than Ds. Assume Ds nominate Ds, Rs nominate Rs.
At the onset of the Biden term, the commission consisted of 3 Rs and 2 Ds (pic).
At the onset of the Biden term, the commission consisted of 3 Rs and 2 Ds (pic).
Possible the Hudson Bay and Sycamore Partners #BBBY rumors were real as FTC/DOJ may want to see three potential divestiture buyers when examining M&A antitrust ramifications.
Specifically, this references potential divestiture remedies to gov’t competition concerns.
e.g. if you wholly control the BoD at Newell (which manufactures baby products via its Learning & Development segment), buying BBBY (and BABY by extension) starts looking “antitrusty”
e.g. if you wholly control the BoD at Newell (which manufactures baby products via its Learning & Development segment), buying BBBY (and BABY by extension) starts looking “antitrusty”
If a #BBBY acquirer controls manufacturing, it could unfairly advantage Newell brands in its retail distribution to harm competition.
Historically, M&A parties look to remedy these concerns by divesting "problematic" businesses to appease regulators.
Historically, M&A parties look to remedy these concerns by divesting "problematic" businesses to appease regulators.
Morning update:
Yesterday, we saw a rally in the #stockmarket and this was expected. What was surprising is the fact that the #crypto market did not follow the move until major tech companies reported disappointing earnings results and we saw a drop📉
theguardian.com/technology/202…
Yesterday, we saw a rally in the #stockmarket and this was expected. What was surprising is the fact that the #crypto market did not follow the move until major tech companies reported disappointing earnings results and we saw a drop📉
theguardian.com/technology/202…
Yesterday proved to us that the market is becoming totally irrational. Bed Bath & Beyond failed to make interest payments on its bonds just weeks after the company warned it was considering filing for bankruptcy, yet the stock is surging higher🤦♂️ #BBBY
barrons.com/articles/bed-b…
barrons.com/articles/bed-b…
Insanity at its finest😂 At some point, the stock was up 25%🚀
@SEC_Investor_Ed, since you’ve been on a roll with your rubric of Investor Edu, please educate the investing public about the phenomenon of “Stock Tokens” traded on @FTX_Official & @BittrexExchange which are supposedly backed 1:1 by the stock in custody of CME-Equity #AMC #GME
@SEC_Investor_Ed @SECGov – we’d like to get to the bottom of the fairly new phenomenon of “Stock Tokens,” which started trading on crypto exchanges as early as Jan27, ‘21 & on others on Jun 6-7, ‘21. Why are the underlying stocks of those tokens overly shorted stocks? #AMC #BBBY
@SEC_Investor_Ed @SECGov – we have noticed that those “Stock Tokens” only exist for a select few stocks, which have in common overwhelming short interest, & large number of unsettled synthetic (longs & shorts). SEC Investor Edu, what is the purpose of such instrument? #AMC #TSLA
Bed, Bath & Beyond released their strategic update today
Here's all you need to know, in a 🧵👇
Here's all you need to know, in a 🧵👇
I'll start with the elephant in the room:
$BBBY announced that they will offer up to 12 Million shares on the market
What a rollercoaster of events in $BBBY
In this thread I give both a 🐂 and 🐻 take on what's next
🧵👇
#BBBY #BBBYSQUEEZE #RyanCohen
In this thread I give both a 🐂 and 🐻 take on what's next
🧵👇
#BBBY #BBBYSQUEEZE #RyanCohen
Ryan Cohen, famously known for being the chairman of GameStop, bought a 9.8% stake in Bed, Bath & Beyond in March this year. This purchase also included far OTM calls at strikes 60, 75 and 80
Back then, the price rallied to $30
Back then, the price rallied to $30
In his letter, he specifically expressed interest in Buy Buy BABY, saying he wanted to make it the Ultimate destination for babies. His plan was to spin off to lower debts on BBBY
Since then, Ryan Cohen fired the previous CEO and installed 3 of his own boardmembers.
Since then, Ryan Cohen fired the previous CEO and installed 3 of his own boardmembers.
$BBBY Ryan Cohen sold all his shares & calls... BUT:
There is a rule for transactions of 10%+ shareholders, which states that "any profit realized by the insider as a result of the two transactions (i.e., as a result of the “short-swing trade”) must be disgorged to the issuer
There is a rule for transactions of 10%+ shareholders, which states that "any profit realized by the insider as a result of the two transactions (i.e., as a result of the “short-swing trade”) must be disgorged to the issuer
Does this mean that Bed, Bath & Beyond will get the profits from Ryan Cohens share purchases?
The profit on his shares is $58,676,002.03
$BBBY #BBBY
The profit on his shares is $58,676,002.03
$BBBY #BBBY
Source on rule of securities transactions by 10%+ shareholders:
investmentfundlawblog.com/resources/inve…
investmentfundlawblog.com/resources/inve…
$BBBY-Formation Confirmed PT 1: The SMA100 played the support just like we spoke about yesterday. In doing so, the pattern became more apparent. To gain an edge on an area for either take profit or interest, let's take some #Fibonacci targets... cont
$REV-Macro Perspective PT 2: Our implied pattern is a #cupandhandle. We mentioned yesterday that we'd be able to form this candle only if we found support off of the 100 day simple moving average... cont
Transactions were authorized until January 28th, the day the buy button was turned off.
#AMC #GME #TSLA #KOSS #NAKD #SNDL #NOK #BB #BBBY #CALLINGALLMEMES #MOON #SEATBELTS #HOLDERS #STONKS #STOCKS #SLAPTHEASK Part 3 of the time to come home piece.... I told ya'll this was long ...I probably will do a video to explain it on YouTube but wanted to essentially get this
out to you. So what is next....part of my conclusion if you will The DTC knows the plays that are being made within the ATS network they may not be able to tell us how much, but we know that most of them have overleveraged assets that they do not have nor owned just to be able to
combat retails buying power. The DTC knows that at some point they will have to be margin called for these deals. The stuff is already hitting the fan. I predict that more and more HF and MM and banks will still bite the dust in the coming week. Do not think for a second that
#AMC #GME #TSLA #KOSS #NAKD #SNDL #NOK #BB #BBBY #CALLINGALLMEMES #MOON #SEATBELTS #HOLDERS #STONKS #STOCKS #SLAPTHEASK Part 2 of the Recap tonight "Time to Come Home" - They have now made the rules to indicate three things. 1) We will charge you the difference between your
short position and the volatility of the market. You will need to pay up immediately. 2) The NSCC showed us that we have a liquidity issue when it comes to these stocks. Liquidity in accounting means that you don’t have enough current assets to cover short term obligations and
the other assets you do have are not that is translatable into cash. It’s like if I have 2M dollars between cash and investments but I have a huge Fixed Asset that wont be sold immediately to cover whatever short term obligation should I get called out on it aka margin.
#AMC #GME #TSLA #KOSS #NAKD #SNDL #NOK #BB #BBBY #CALLINGALLMEMES #MOON #SEATBELTS #HOLDERS #STONKS #STOCKS #SLAPTHEASK If you could here me singing right now you would hear the words “TIME TO COME ON HOME, COME ON HOME, COME ON HOME! IT’S TIME TO COME HOME.” Lets get this
message out far and wide folks. Tonights recap message it’s time to come on home. Why? We got some official things to discuss and I may be late to the party but I’m about to break down the SR-DTC-2021-005. Why am I saying it’s time to come on home?
Because this all affects us the same way we are one family in this struggle. No matter what happens we got each others backs just like family. So lets break this rule down and I’ll tell you how it effects you and why this matters. Lets Recap what we know and what has occurred in
Analysis: #NASDAQ $BBBY
Case 192 #Bed_Bath & Beyond Inc.
DISCLAIMER: The analysis is strictly for educational purposes and should not be construed as an invitation to trade.
#BBBY 1/4
Case 192 #Bed_Bath & Beyond Inc.
DISCLAIMER: The analysis is strictly for educational purposes and should not be construed as an invitation to trade.
#BBBY 1/4
Chart 1
Weekly Chart: The loss of #trendline #support at 14.36 was followed by a gap down to 12.15, buying interest from there has been anemic with sales around 13.00 forcing price lower - the current target is .....
BBBY 2/4
Weekly Chart: The loss of #trendline #support at 14.36 was followed by a gap down to 12.15, buying interest from there has been anemic with sales around 13.00 forcing price lower - the current target is .....
BBBY 2/4
..... 4.40/06. #Resistances at the top are strong and the main #SMAs are all pointing lower.
BBBY 3/4
BBBY 3/4
