Tendie Baron Profile picture
Aug 19 13 tweets 3 min read
What a rollercoaster of events in $BBBY

In this thread I give both a 🐂 and 🐻 take on what's next
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
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.
Recently we've seen a few SEC filings from RC Ventures on BBBY.

The first one indicated that he held
On 8/16 we saw another one, indicating that he INTENDED to sell
And last night (8/18) that he actually sold
Interestingly, MSM used the Form 144 (intent to sell) to push headlines claiming that Ryan Cohen had SOLD everything already.

This turned out to be premature at best, false at worst, as RC sold 2.78M #BBBY shares and his calls on 8/17, the day after the headlines.
But there was more news yesterday, that flew under the radar. Both potentially bullish and potentially bearish news.
Bed, Bath & Beyond hired law firm Kirkland & Ellis,
which is a firm that is known for its dominance in restructuring and bankruptcy situations, was tapped to advise the retailer on options for raising new money, refinancing existing debt, or both.
The news of BBBY hiring Kirkland & Ellis, can be bullish and bearish:
🐻The bearish take is that they use their services because bankruptcy IS a possibility
🐂The bullish take is that they are using their services for a spin-off of BABY (more on that later)
On 8/18, Bed, Bath & Beyond again stated that there would be an announcement at the end of this month. Investors speculate that this might be a spin-off of BABY (🐂)

Today is one of the 9 trading days we have left in August.
Yesterday I wrote that Ryan Cohen's sales were only a fraction of the volume traded:
👉only 1.26% of 395M shares traded on Tuesday
👉only 1.28% of 262M shares traded on Wednesday

It was only in anticipation of RC's selling and the actual news of completion that we dropped
🐂BBBY is still on RegSho as of 8/18.
🐻In the aftermath of the announcement that RC had sold his entire stake, the shareprice plunged about 40% on 34 Million volume. If a panic sell-off continues, then there is a chance BBBY goes OFF RegSho
To wrap it up:
👉Ryan Cohen's sale did not impact the price (🐂), the panic sell-off did(🐻)
👉Announcement in 9 trading days (can be both🐂/🐻)
👉Still on RegSho (🐂), if we go OFF RegSho then that's bad for the squeeze-thesis (🐻)

Good luck to everyone managing their positions
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More from @TendieBaron

Aug 18
$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
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
Source on rule of securities transactions by 10%+ shareholders:
Read 4 tweets
Feb 19
What are #CitadelScandal & #KenGriffinLied ?
And why are these hashtags important?

👇Here's a thread to refresh and/or learn 👇

$GME #GME #GMESQUEEZE #MOASS #MOASS2022 #shortsqueeze #DOJ
2/ In January'21 GameStops stock price ran up dramatically as retail found out it was 140%+ sold short.

On 1/28/21, RobinHood and some other brokers decided to take away the buy-button for retail on $GME, amongst a few other tickers.

This action was unprecedented & unlawful.
3/ On February 18th, there was a congressional hearing on the GameStop events.

Ken Griffin was asked if anyone in his organization had contact with RH about restricting or doing anything to prevent people from buying.
He replied: "Let me be perfectly clear, absolutely not"
Read 10 tweets

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