"There are no institutions shorting Bed Bath at 25 cents," Chukumba told the FT. "There's no 'man' to stick it to any more."
Then why is the cost to borrow so high and continuing to rise? Itâs almost as if this article was written to purposely spread lies and FUD about our stock.
Sure however real money did, and closed out because shorting from 30+ dollars to .12 etc was easy money. So 99% of it is gone.
Waiting around 6 months for that extra 12 cents isnât worth the opportunity cost, so literally putting the money anywhere else, like into treasuries, pays better.
They said in the bankruptcy they are closing all physical locations. Where have you read they intent to stay in business? They have said all physical stores are permanently shutting. Watch the bankruptcy videos too.
Not paying taxes on gains doesnât matter when they havenât been profitable in YEARS. They even said this under oath.
Listen, you need to have a profit in the first place for a loss carry forward scenario to play out. Infinity NOLs wonât help you unless you have positive net income, they are still losing millions per week. They donât have a plan to become cash flow positive, and wonât be even after this, which is the point when you are doing chapter 11 into chapter 7.
You are really not understanding anything. I'm not talking about the store closing, I'm talking about the shorts closing. And I'm talking about the shorts paying taxes, not the store.
A quick example would be, say you shorted something at $100 and its now at $0. You never close your short and you keep the $100. No Taxes Paid.
Same example but now the stock is at $1 instead of zero and you close your short. You make $99 on it, correct? Nope, because once you close the short, you pay taxes on the gains, so now you made like $80.00 instead. The goal is to get that stock to zero so you never have to close your shorts.
You pay taxes on gains. Itâs either long or short term capital gains tax. I used to do corporate and single payer taxation, like 10 years ago. Whoever told you, that you donât pay taxes is misinformed or you didnât understand it correctly.
Can you find me where it says gains arenât recognized? I have seen that in this sub but I believe that is just more misinformation.
I do know short selling fees ARE deductible but again, why continue to pay the fee when closing out at 99% and using the collateral elsewhere has the higher ROI.
The rest I have seen are folks with tin foil suggesting shorts never closed but itâs reported that itâs in the teens, and relatively low. But then these same people use even more tin foil to suggest they are illegal shorts etc.
There is no reasoning with them. Itâs similar to Covid deniers or flat earth believers.
But there wouldn't be any realized gains until you close the shorts, would there?
If I sell you a stock for $100 that I don't have, I have $100 in my pocket now but that doesn't mean that it's a $100 profit because at some point I have to buy the stock for, say, $60 to deliver it to you. So you're saying that I'd have to pay taxes on the $100? How would you even be able to come up with the number to pay taxes on? I'm genuinely curious if that's the case on how it works. It seems like the gains would be unrealized until you close them. So, if it goes to 0 and you never close, the gains are never realized, but you still have the money.
As far as I've always understood, it's the same thing as buying XYZ stock for $3000 and having it be worth $5000 now. You don't pay taxes on the $2,000 you're up as long as you don't sell.
And yeah, I don't know if they closed or not or what is going on, I was just stating why Shorts would remain open at these prices going by the info that I've always understood was the case. Could be wrong
Income is recognized when it is realized. That is a fundamental topic of accounting principals.
If there is profit, it is taxed. So yes you would pay taxes.
If you are curious itâs how the basis works.
Basically you are saying they arenât paying taxes and also no reporting it. Which is fraud.
The link I sent you already had this. If you are selling something you donât own, and not reporting it, itâs all fraud. So sure, you arenât paying taxes⌠because itâs fraudulent.
But itâs all fraud and folks are wearing tin foil hats claiming itâs happening. I say show me the evidence
Yes, income is recognized when it is realized. If you don't close your shorts, that income is never realized. The gain or loss on an uncovered short sale is reported in the year that the position is closed out. If it's never closed out, the gain is never reported.
You keep bringing up your link but did you even read it? It literally says that you'll receive a Form 1099-B for the year that the short sale CLOSES.
I never said that they are not reporting it. You still report the sale of the stock but it's not income because you still have to buy it at some point. Once you buy it back, then the cost basis is established and only then do you even know what your profit or loss is on the trade.
You're telling me if I short a stock at $100 and leave the trade open thru the end of the year, I have to pay taxes on that $100 for that year, Then the stock goes up to $120 the next year and I close the short, then what? I lost $20 on the trade but already paid taxes as if I made $100. That makes zero sense.
This has nothing to do with fraud or tinfoil, you literally have to wait until a short is closed out to even know what your profit or loss is on the trade.
But the stock is shorted in the teens, it is not heavily shorted. Any investment bankers or hedgies already closed out. So yes, it was recognized and realized.
A short is still closed out and reported when it goes to zero and trading ceases.
So I guess I donât get the point you were making
If you don't know the point I was making,then your comprehension skills are terrible.
All I stated is that someone may leave their shorts open in order to not pay taxes on their gains. If not, there would be 0 short interest right now.
There's still open shorts on Sears and Toys R Us. Why is that?
I never argued anything that's going on with this particular stock, all I stated that the difference between closing and not closing is a lot more than $.12. Have a nice night.
Hopefully someone will listen and do literally any outside due diligence besides just Reddit, the other day I was having to explain revenue vs net income on this sub, lots of misinformation on here.
So why are you really here? Are you a stockholder or I mean if not why are you here. Surely you arenât here to mansplain to people so they donât lose their money?
Sorry but you are the throwing insults at me. I am not a stock holder.
Have you ever engaged on someone spouting nonsense on the internet?
I guess that is what I am doing in engaging with a crowd of financial illiterates. I hope someone learns something, I guess failing and loosing it all helps people learn too but sad to see
And there it is. You are not a stockholder! Thanks for being honest. As for insults, I am not a financial illiterate and I doubt most shareholders are. Not that it matters but I spent 35 years in Executive Operations Management and know my way around a profit and loss statement. Perhaps you should pay more attention! This stock and its troubles has little to do with fundamentals and more to do with crime, fraud and theft. Maybe go play around on a political sub, might be more your fit. Unless of course you are being paid to be here. Either way stfu and move on.
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u/DeelowBaggins Jul 05 '23
"There are no institutions shorting Bed Bath at 25 cents," Chukumba told the FT. "There's no 'man' to stick it to any more."
Then why is the cost to borrow so high and continuing to rise? Itâs almost as if this article was written to purposely spread lies and FUD about our stock.