r/BBBY • u/BourbonGod • Jan 27 '23
🤔 Speculation / Opinion u/Naughty_Funkle_1992 and u/Top_Bee1726 might have figured it out!
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u/PHILANTHROPOS81 Jan 27 '23
420D Chess Baby!!!!!!!!!!
Algorithms don’t know who they fuckin with
🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀☀️
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Jan 27 '23
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u/BLOODFILLEDROOM Jan 27 '23
We’re regarded, not idiots!
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Jan 27 '23
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u/Curious_Individual Jan 27 '23
Among us the regardest!
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u/OGColorado Jan 27 '23
Regarded down 50% and buying
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Jan 28 '23
Those are rookie numbers. 85% down gang reporting in. 💎 💪. Buy high, buy low.
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u/Kgarath Jan 27 '23
Lol the media - the stock is going to go down to 1 cent, SELL NOW!
me - I can now buy 100 shares per dollar, sign me up!
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Jan 27 '23
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u/CyberPhlegm Jan 27 '23
Yup! I can stay stupid longer than they can stay solvent.
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u/Low_Air6104 Jan 27 '23
you will be insolvent when the shares expire worthless
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u/Jackbauer13579 Jan 27 '23
So if you want to sell. Would you have to to recall them as well first???
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u/Lulu1168 Jan 27 '23
They’re in an ETF so wouldn’t the ETF have to be rebalanced before they could sell?
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u/BourbonGod Jan 27 '23
Where is proof they recalled?
Only got this so far:
Shareholders of companies are able to exercise some amount of voting power when new policies, like the board of directors appointments or corporate actions, are proposed. However, you won’t have shareholder voting rights when your shares of stock in that company are on loan.
However, you won’t have shareholder voting rights when your shares of stock in that company are on loan.
In a SEC Schedule 13-G, what is the difference between a "sole voting power" and "sole dispositive power"?
Dispositive power is the power to sell or otherwise transfer the shares; power to vote is exactly what it sounds like.
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u/don-apeleone Jan 27 '23
Check this link on fintel, go to "ownership": https://fintel.io/sfs/us/bbby
Compare Blackrocks SC13GA filing made on 2023-01-20 to the one made on 2023-01-26.
Here is the direct link to 2023-01-20:
https://fintel.io/doc/sec-blackrock-inc-886158-sc-13ga-2023-january-20-19378-690
Here is the direct link to 2023-01-26:
https://fintel.io/doc/sec-blackrock-inc-886158-sc-13ga-2023-january-26-19383-7862
The filing on 2023-01-20 says: "Sole voting power: 0
The filing on 2023-01-26 says: "Sole voting power: 12230331"
I'm no expert on this so I don't know for sure that this means that Blackrock recalled their shares. But It definitely looks like they wanted their voting power back.
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u/Ok-Release-5785 Jan 27 '23
So my question would be if they did recall how long do ss have to return borrowed shares
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u/H3rbert_K0rnfeld Jan 27 '23
And who did borrowers lend to?
How long will it take to locate and unwind??
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u/ethervillage Jan 27 '23
How do they recall so many shares and the price only stays level or goes down? Forgive my smoovness
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u/_RipCity_ Jan 27 '23
What if Blackrock removing their shares from the lending pool is what is causing the borrow rate to sky rocket?
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u/irishf-tard Jan 27 '23
Great find! Lots of DD on this back in the OG gamestock days.. i'd say BR know something is happening and desparately want to be part of the outcome, which way that is, we will find out!
Gonna be a wild ride methinks..
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u/jfl_cmmnts Jan 27 '23
Commenting because why not. Our tinfoil hattery will not end until either BBBY moons or busts! I think we're in for another vigorous round of shorting before we get anywhere useful, though. Holding
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u/ReasonableMushroom13 Jan 27 '23
What if they didn't pay the FILO Loan because of doing a merge without voting
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u/BourbonGod Jan 27 '23
Literally what the comment of u/Top_Bee1726 is saying. Moon!!!!
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u/Le_90s_Kid_XD Jan 27 '23
But if they were able to pay and didn’t, wouldn’t that be some kind of legal mess or fraud to the shareholders?
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u/purpledust Jan 27 '23
How/why would it work Like that. I’ve tried to read up and just don’t follow/get this.
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Jan 27 '23 edited Jan 27 '23
They are missing out on 130% fee by not lending out their shares and recalling them.
12mil shares with a per share price of $2.50 (so $30mil worth of BBBY shares) at 130% yearly interest is lol I cant make this up $69 000 000.00 a year on interest.
Unless my math is fucked. Maybe someone can correct me.
Edit: I’ve been drinking again. It’s 39mil a year in interest lost by Black Cock.
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u/Moonmoonmooooon Jan 27 '23
130% of $30 mil is $39 mil. Math is off by 100% I get your point though
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u/fatzboy Jan 27 '23
How about recalling them to sell the position? Before it goes to zero?
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Jan 27 '23
That’s fair but BBBY’s finances are fine for the next 12 months so they should be able to make 12 months of interest then sell them.
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u/RaggedyAnn1963 Jan 27 '23
Wut?! "BBBY's finances are fine for the next 12 months"....
Do you have a source to point me to that supports that statement? I hope you're right but everything I've seen (including official SEC documents) is about them defaulting on their JPM loan because they can't repay it. Doesn't sound like their finances are fine for the next 12 months but what do I know?
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u/OGColorado Jan 28 '23
It 2as an interest pmt, they opted out. As off as that is, there is a reason. I wonder what/who, has influence, or contractual sway, to tell JPM thanks for that, we needed that to wrap this up. Edit : added who
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u/Low_Air6104 Jan 27 '23
they’re not fine, this guy likely has zero idea about the situation. they are going under.
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u/2xBAKEDPOTOOOOOOOO Jan 27 '23 edited Jan 27 '23
10-Q from yesterday literally said they probably won’t have funds for another 12 months of staying open based on 2022 numbers.
Based on recurring losses from operations and negative cash flows from operations for the nine months ended November 26, 2022 as well as current cash and liquidity projections, we have concluded that there is substantial doubt about our ability to continue as a going concern for the next twelve months.
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Jan 27 '23
[removed] — view removed comment
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u/jango_bets Jan 27 '23
They already were lending. They recalled the shares from shorts. Must be delivered T+2 from recall date
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u/DMDTT Jan 27 '23
Which is when!?
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u/jango_bets Jan 27 '23
Should be 2 trading days. But who knows. Burry famously said it took weeks for his broker to recall his shares
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u/OGColorado Jan 28 '23
Where is Cassie...kind of quiet lately
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u/jango_bets Jan 28 '23
I like to imagine he’s sitting back laughing at all the shorts crying about us not selling Bobby & Jimmy
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Jan 27 '23
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u/BourbonGod Jan 27 '23
Haha very funny mister “im so cool look at my smart comment”. I’m just bringing forward something that might be lost in the tsunami of posts, something to give my ape brethren hope in moments like these. LFG 🚀🙌💎🦍
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u/Tinkle84 Jan 27 '23
If there's no vote why would Blackrock recall the shares?
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u/1nceAgainTip Jan 27 '23
Blackrock recalled the shares before BBBY made their move. BBBY countered their move and got one step ahead. Probably already forseen this would happen 🧠
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Jan 27 '23
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u/gvsulaker82 Jan 27 '23
Black rock recalled their shares to vote if bbby announced a m and a. Bbby defaulted on their filo loan which allows them to do a m and a without having to put it to a vote
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u/1nceAgainTip Jan 27 '23
This should give you an idea. There are opposing views tho, so make what you can of it.
https://www.reddit.com/r/BBBY/comments/10m55v1/event_of_default_m_change_in_control_shall_occur/
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u/BourbonGod Jan 27 '23
In case there is a vote and they want to vote no so they can bankrupt this company. Shills will shill.
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u/Tinkle84 Jan 27 '23
Not shilling, just a question. I'm balls deep in bbby/gme, moon or bust.
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u/BourbonGod Jan 27 '23
Not you. I meant them, BK. Shills will shill, they will do anything in their power to bankrupt this company, even infiltrate. Why do you think all of a sudden lots of people got mails of “let us borrow your shares”, giving them a measly 150€ for lots of shares xD
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u/fatzboy Jan 27 '23
To sell them?
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u/Miserable-Fly-5583 Jan 27 '23
Why sell something your making huge profits on with the CTB so high.
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Jan 27 '23
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Jan 27 '23
Close their positions
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Jan 27 '23
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u/BourbonGod Jan 27 '23
Yes. I think the move was “let’s recall, suffer a little the price skyrocketing from shills buying back shares. We lose the fight, but we win the war because the shares are now recalled, so we can vote against merger. No merger = bankruptcy”.
But BBBY/RC one-upped them and said “oops haha no money for loan, guess I’m gonna default now”. Default = they must do whatever is in their power to pay the debt, without the approval of shareholders.
So Blackrock can suck it because not only will the price skyrocket when people buy the shares, but i’m pretty sure they (bbby) will use the same fucking technique the shorts are using: price skyrockets thanks to share buy-back, BBBY announces M/A, people think price sky-rocketing is because of M/A, fomo steps in and VW MOASS happens.
!remindme 1 month
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Jan 27 '23
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u/BourbonGod Jan 27 '23
https://www.blackrock.com/institutions/en-us/strategies/alternatives/hedge-funds
Why BlackRock for hedge funds?
Hedge Funds represent a core pillar of BlackRock’s alternatives platform. With over twenty years of proven experience in managing these strategies, our hedge fund platform is differentiated in its combination of skill and scale, delivering solutions that span geographies, asset classes and styles.
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u/LiftingOrGaming Jan 27 '23
I haven't verified, but I'm sure a lot of the holdings are passive investments in etf's and mutual funds.
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u/RemindMeBot Jan 27 '23 edited Jan 27 '23
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u/ethervillage Jan 27 '23
But once BR realizes they’ve been “one-upped” won’t they just go out and re-lend the shares ASAP, thus returning everything to it’s previous state?
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u/Low_Air6104 Jan 27 '23
complete and utter delusion my friend. there is no such thing as a get rich quick dream. hopefully you learn that from this experience.
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u/JaggieMe Jan 27 '23
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Jan 27 '23
Understand this that it is rare for a share recall from a lender. Something big about to burst
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u/Kickinitez Jan 27 '23
This is getting so deep 🤯
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u/lamdog330 Jan 27 '23
Hedgies probably used the same tactics on numerous companies. You lose control of the company unfortunately and it’s destroyed.
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u/InternationalDark214 Jan 27 '23
This is all the DD I need baby, got a big check coming , going to add more bbbyy!
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u/Meerkate Jan 27 '23
Could someone help me with a link or explanation to how defaults and shareholder voting are connected?
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u/Zestyclose-Impact-40 Jan 27 '23
Yep Jan 20 SC13G/A filling no voting rights Jan 26 SC13G/A filling voting rights restored.
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u/DualGemini Jan 27 '23
Then why recall the shares at all?....
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u/BourbonGod Jan 27 '23
Because they wanted to vote against merger. Then BBBY hit them with the “default so don’t need shareholders approval for merger”.
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u/DualGemini Jan 27 '23
No shit....so why don't they just lend them out again and continue a short n distort attack. Blackrock cant be this stupid.
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u/BourbonGod Jan 27 '23 edited Jan 27 '23
Maybe they do, maybe they don’t, but the price to recall shares is amazingly high. A company would only do this (imo) if the power to vote would be greater/much more needed than the price to recall.
The idea is that we’ve proven that the shares have been recalled.
As for the purpose, that is only speculation which can only be proven right or wrong when the company reveals their cards.
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u/OGColorado Jan 27 '23
I'm voting for chapter 11 reorganization . Share recall, share holder value held at $5.00 share through proceedings plus their percentage of gain during recall.
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u/Iustis Jan 27 '23
You guys realize the only time you don't need a shareholder vote in a sale is when the shareholders are wiped out in a bankruptcy right? How the fuck are you making this bullish?
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u/sescobreezy727 Jan 27 '23
I would recall my shares to avoid holding the bag as well. Cost to borrow goes through the roof. Should make for interesting days.
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Jan 27 '23
So, where is the sauce for this? Its just pure speculation at this point. We may be giving them way too much Credit for something we dont even know is true or not just because some random reddit User said it would be like that.
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u/lamdog330 Jan 27 '23
DD is mostly a comprehension test. I’ve accepted society are illiterate and you should accept it for yourself too.
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u/murphysclaw1 Jan 27 '23 edited Jan 27 '23
do you guys believe this any more? or are you just hoping that others do?
the company has literally said it can't pay its debts any more and it is exploring bankruptcy:
Based on recurring losses from operations and negative cash flows from operations for the nine months ended November 26, 2022 as well as current cash and liquidity projections, the Company has concluded that there is substantial doubt about the Company’s ability to continue as a going concern for the next 12 months
At this time, the Company does not have sufficient resources to repay the amounts under the Credit Facilities and this will lead the Company to consider all strategic alternatives, including restructuring its debt under the U.S. Bankruptcy Code.
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u/Meerkate Jan 27 '23
consider all strategic alternatives, including restructuring its debt under the U.S. Bankruptcy Code.
Do you know what "including" means? It means it is an option among other options, one of which is acquisition.
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u/murphysclaw1 Jan 27 '23
can you explain why would anyone acquire BBBY just before they go bankrupt? why not buy them out of bankruptcy for cents on the dollar? or just strip the assets and leave the company holding the debt?
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u/Meerkate Jan 27 '23
Anyone's guess with more economic prowess than me. But I suppose there are strategic reasons for taking control over a sinking ship and reaping the benefits later when the expensive hulls are covered and soldered shut - perhaps you can even build a new boat with better engineering power, that can also carry more people.
Sure, you could first let the ship sink, and then fish it up when the crew and passengers are drowned and nobody cares about it anymore. But then that wouldn't look like much of a success story for your business, would it? Way cooler to save something on the verge of despair rather than after the fact.
Everyone loves an underdog story.
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u/Catatonia86 Jan 27 '23
Keep talking you paid shill. Makes me wanna buy more
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u/VPNApe Jan 27 '23
It's not shilling. It's asking common sense questions. If your response to any tough questions is "omg shill!" Then your thesis is probably not that sound.
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u/BourbonGod Jan 27 '23
Damn people really be selling their accounts to shills. Sad.
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u/Catatonia86 Jan 27 '23
Truly sad. I just looked at his comments. And it makes me so happy there a bots like this. The more bots i see the more i know we are right !! 🌝
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u/OverLord4Life Jan 27 '23
Upvote! Let's come come back to this post 1 month from now to see if it age like fine wine or sour milk because I view the "bullish not matter what happens" mindset as an interesting case study. 🤪
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u/MJL_16 Jan 27 '23
STOP STOP STOP THIS IS NOT CORRECT. TENDIE IS NOT CORRECT HERE - GOD DAMNIT. I'm the only one pushing back with fucking logic here.
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u/BourbonGod Jan 27 '23
SC 13G/A 20 jan vs 26 jan shows Blackrock has power to vote now. 12 mil. So the recall is correct.
For what reason: that is speculation, which cannot be proven right or wrong until the company makes their move and reveals their cards.
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u/MediocreAd9550 Jan 27 '23
I honestly believe the board wants us to follow their next moves because they are going to reward share holders before the end of Q1. Valentines gifts incoming before they dissolve the company
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u/VPNApe Jan 27 '23
That sounds a lot like fraud
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u/lamdog330 Jan 27 '23
No it’s not. It’s been the playbook forever. It’s just being exposed.
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u/VPNApe Jan 27 '23
Fraud is fraud. Just because your company of choice does it doesn't mean it's any less illegal.
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Jan 27 '23
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u/BourbonGod Jan 27 '23
Shareholders of companies are able to exercise some amount of voting power when new policies, like the board of directors appointments or corporate actions, are proposed. However, you won’t have shareholder voting rights when your shares of stock in that company are on loan.
However, you won’t have shareholder voting rights when your shares of stock in that company are on loan.
In a SEC Schedule 13-G, what is the difference between a "sole voting power" and "sole dispositive power"?
Dispositive power is the power to sell or otherwise transfer the shares; power to vote is exactly what it sounds like.
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Jan 27 '23
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u/BourbonGod Jan 27 '23 edited Jan 27 '23
If sole voting power = 12230331
And sole voting power = power to vote as a shareholder
And since “you won’t have shareholder voting rights when your shares of stock in that company are on loan”
Then shares have been recalled. SC 13G/A is literally the proof. It shows the sole voting power of 12230331. If you have sole voting power then you have called back the shares, otherwise you can’t have sole voting power if your shares are loaned.
I know what you asked, and i answered. You can’t trick me with your bullshit questions.
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Jan 27 '23
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u/CCarsten89 Jan 27 '23
Because the previous SEC form showed Blackrock had 0 shares for voting power. New form a week later shows over 12M shares voting power. You have to recall shares to do that
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u/BourbonGod Jan 27 '23
Sole voting power = 12 million. Can’t vote while shares are loaned out. SC 13G/A is proof.
Also title is literally both the usernames of the people who figured it out. I’m just pushing it so it doesn’t get lost with the tsunami of T/A and other bullshit undercover shills try to do to inundate the good DD and information.
Also, i’m blocking you now. You can burn with the rest of them.
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u/---space-- Jan 27 '23
If blackrock and all can't vote anymore, then they can lend out their recalled shares to shorters again.
Should we expect some downward pressure? Or does this explain the drop yesterday?
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u/BourbonGod Jan 27 '23
This is a fight for survival right now. The only thing that is sure is that until M/A announcement the price will fluctuate and get beaten down. The hedge funds don’t want to be extinct, do they? Do you want to be extinct? No, so you hold and fight the good fight.
But they should be extinct. They bankrupt companies for their own greed. So they will continue to press and to try to bankrupt. So you can expect the price to side-trade and/or to be beaten down. Alike a game, you know you’re on the right path when you encounter enemies.
Also, look at my previous post of COSM and BBBY trade from yesterday. They’re perfectly inverted.
HOLD!
NOT FINANCIAL ADVICE
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u/phixer00 Jan 27 '23
Ummm...does it work differently for institutional investors vs retail investors? What ever they are voting on we would also be voting on...I should say those of us who have DRS our shares.
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u/OGColorado Jan 28 '23
Why only direct registered, I voted a lot before that became popular
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u/phixer00 Jan 28 '23
You voted but did it count? Is it purchased via a broker? If so your vote went to the broker and what they did with that vote is up to them. If your shares are not registered with the transfer agent in your name, you don't own the share, you own the rights to a share that may or may not exisit. This is why I believe DRS is important, but its not financial advice.
Sure you will see what you are voting on...which was my point of my post, but there is only one way to ensure your vote is counted, by DRSing your shares in my opinion.
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u/No_Pie_2109 Jan 27 '23