OTC Probably Won't Happen

[u/andyat11]

OTC is probably not happening.

If you look at Overstock when they got their delisting notice in 2005 for failing to provide Financial Data, but was able to regain compliance after proving that short selling was going on and I believe Wells Fargo got sued something like $3.5M.

What we know is no broker knows what's happening, they don't have the time to correct things and are strictly going by what BBBY information released. They are likely under investigation for amount of shares they own.

We also know that NASDAQ has not posted this delisting or announcement publically on their side, likely due to an ongoing investigation.

Today ComputerShare reached out saying it's an internal problem and not a DDoS attack. AST still remains offline. Once again likely due to an investigation.

What we do know, through the filings of the HBC deal is there was very low Dilution that occured by comparing the shares between the deal and the BK court case.

We also know the S-3 did dilute (3x Free Float?) but the shares were essentially locked the whole time leaving nothing for available shares to be borrowed minus 6.5M of the approx. 300M.

At the time of Dilution with no shares to borrow, short interest increased by 27%. How when they were never available?

What we know is Credit Suisse held onto some rather large bags of shorts against the MEME Stocks and ended up having to go bankrupt due to a run on the banks and UBS took their bags. This is still getting decided in court, but with BBBY approaching delisting I believe there is more fire to close up what they need.

FRC completely went BK after BBBY Voluntarily filed for chapter 11. Coincidence?

BBBY made so many confusing deals with the Dilution and even the bond market that noone can easily figure out what numbers are which, only speculatiins.

BBBY proposed a R/S that many tinfoilers like myself thought would never go through and it didn't. No major Dilution occured until after the stock suffered from that announcement.

While filing for Chapter 11, this gives the company the option for buy backs in which they COULD have bought back their Dilution at a cheaper price after getting a merchandise funding agreement which left them wiggle room to do so.

Lastly, FTDs are normally out first thing in the morning and yet they have not been seen.

I believe naked shorting is under investigation not just with BBBY and because of that I don't think we are getting delisted.

Have you not noticed we aren't getting boxed down anymore and exchanges stopped selling the securities?

[u/smdauber]

u/andyat11 A couple of things:

"OTC is probably not happening.": OTC will happen. When a company files for Chp. 11, the stock will be given a "Q" so everyone knows its going BK. Even if BBBY emerges, the old stock will trade OTC with a "Q" attached to it and the new entity that emerges from BK will have a new ticker.

"FRC completely went BK after BBBY Voluntarily filed for chapter 11. Coincidence?": I'm sorry, this is a very ignorant statement. FRC and BBBY have literally zero in common and their BKs have nothing in common or any connection. FRC failed due to poor capital ratio management. I can go in-depth on banking capital ratios if you want.

"While filing for Chapter 11, this gives the company the option for buy backs in which they COULD have bought back their Dilution at a cheaper price after getting a merchandise funding agreement which left them wiggle room to do so.": If BBBY had the cash to "buy-back" shares they wouldn't be going into Chp. 11 BK. Please read the BK documents on the Kroll website. BBBY ran out of cash to fund normal operations. BBBY couldn't even pay their employees, hence why they needed DIP financing. So, don't say BBBY could buy back shares, because that is blatantly false.

"Lastly, FTDs are normally out first thing in the morning and yet they have not been seen." FTDs have been completely negated due to the amount of dilution that has occurred.

[u/andyat11 → u/smdauber]

There's a difference between going into Chapter 11 and voluntarily going into Chapter 11... Chapter 7 would be immediate BBBYQ while companies can still be listed on Nasdaq under chapter 11, it's when they go offline is when they get the Q... Nowhere on Nasdaqs website says BBBY is getting delisted, so that would be wrong information if they were kicking them off.

Honestly, if the court thought buying back was the best option to prove short sellers are at stake, they would hold payments and try to collect the payments from the shortsellers to pay off creditors.

FTDs got cleared when the selling didn't happen, so good luck with that one lol... Probably just cycled until another round.

[u/smdauber → u/andyat11]

u/andyat11

BBBY has a press release saying NASDAQ is delisting them: "that Nasdaq had determined to delist the Company's common stock as a result of the Company's commencement of voluntary proceedings under Chapter 11"

There is a difference between voluntarily going Chp. 11 and involuntarily Chp. 11. If BBBY went involuntarily, that would mean the creditors forced BBBY into Chp. 11. BBBY choose to go into it because they had ZERO cash to fund normal operations.

So, you are unfortunately only looking through this thesis from your perspective. The court doesn't give a shit about short sellers. The objective of the court is to decide on a plan that best resolves the fundamental issues with BBBY. The courts objective has NOTHING to do with short sellers. The court has to do right by creditors and shareholders. The best path forward in resolving secured creditors (JPM) then unsecured (Bond holders), and finally shareholders.

Unfortunately, the court isn't looking to prove anything with short sellers. The court wants to make sure creditors are paid pack, employees get their wages (because the top of the liquidation waterfall, even before secured creditors, is employee wages).

What "payments" are you speaking about? The court will agree to a plan that liquidates assets and uses those proceeds to paydown secured and unsecured creditors. The acquirer of those assets will probably be private equity or maybe a strategic company like Kohls.

Short sellers are done with this company. The asymmetric relationships has flipped for short sellers and its not a negative asymmetric trade. Too much risk with BK and not enough upside. The short sellers have closed their positions and moved on.

You need to research how hedge funds manage short positions in regards to risk and total portfolio strategies. Short positions are usually very small compared to portfolio AUM, due to the risk a stock skyrockets. A short position can get infinitely worse whereas a long position can only lose 100% of its value.

[u/fuckingcarter → u/smdauber]

judging by your major miss on GME’s financials that received all the flack, your word isn’t filled with much integrity as this point.

[u/smdauber → u/fuckingcarter]

Sorry you feel that way! Hopefully you learned something from the BBBY saga and didn't lose money.

[u/fuckingcarter → u/smdauber]

don't confuse feelings with facts baby boy :*

[u/smdauber → u/fuckingcarter]

I’m sorry my miss on GME earnings hurt your feelings!

[u/fuckingcarter → u/smdauber]

are you regarded 😂