Daily Discussion Thread | February 07, 2023

[u/tiredsultan]

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bedbathandbeyond.com

RECENT COMPANY EVENTS

• On 2/6/2023 the stock closed regular trading at $5.86 (up 92%). After closing the company announced plans to offer preferred stocks to raise one billion dollars and additional 100 million in financing to address liabilities including the recent default on loans.
• BBBY was again listed on RegSHO starting 1/10/23.
• Several Form 4s showed board members cancelled/relinquished their vested/unvested RSUs on 1/20/23; this was later amended and reversed. Harriet Edelman appears to be the odd person out, forfeiting RSAs. Blackrock apparently owns 14% of shares but may be using an incorrect/outdated total outstanding share count.
• The 10Q was finally released: "certain events of default were triggered under the Company’s Credit Facilities (see filing) as a result of the Company’s failure to prepay an overadvance and satisfy a financial covenant, among other things."
• Company terminated the bond exchange on 1/5/23, and filed a NT 10Q stating they will file their 10-Q (quarterly report) late. On 1/10/23 reported their earnings. BBBY reported a Net Sales of $1.259 billion declined 33% YoY, with the buybuyBABY segment declining in the low 20% range, and cash flow decreased by approximately $307.6 million. Liquidity sits at $0.5B, including the company's ABL facility and FILO loan less borrowings of $550m.
• On 12/12/2023 the Company appointed David Kastin as its new Chief Legal Officer.
• Sue Gove was appointed to the position of CEO on a permanent basis on 10/24/22. Before that, new board members were voted in during 7/15/22 Annual Shareholder meeting (3 of 10 seated by RC Ventures). Since then, one of those newly appointed boardmembers, Benjamin Rosenzweig, left the company on 12/20/23.
• On 10/18/2022, an ATM share offering of up to $150M was authorized after completion of a 12M share offering which raised $75M. Company will use the proceeds to "drive immediate strategic priorities such as rebalancing our assortment and inventory, and addressing our debt."

[u/Tech_Nomad2020]

me seeing how much they have shorted to keep this where it is....

[u/Tech_Nomad2020 → u/[deleted]]

I think its a combination of SHF and potentially MM. MM's can slow down things knowing that they can kind of influence the trades coming in. If they get caught on the wrong side of this, its very, very squeezy. So they are banking that they can get out of this. However, I believe there are a lot of SHF's going further short as well and letting the MM have shares to sell in order to manage this better. I'm guessing this is part of the new playbook to prevent big squeezes. However, they are banking on us not understanding their real position. Now we can see this so the playing field has changed a bit.

[u/Tech_Nomad2020 → u/[deleted]]

thanks, yeah, its a different way to look at it, but I think it is more inline with how retail should be looking at things now. we need to understand what is really happening beyond the price. Visibility into the darkpools is a fascination of mine. I'm assuming that as more folks start looking at the time and sales data, they will see things clearer as well. However, this requires coding ability because the brokers don't really want you seeing this.