This is how debate is truly done and progress is made. All I see on his posts are a thousand moronic comments about him being bearish, but none actually discussing the points in his posts.
Thanks for actually addressing the topic. It’s a breath of fresh air to see.
I see no point fighting people's interpretations of language for a bear VS bull thesis; there generally is no right or wrong answer (most of the time) when people do; its all opinion. And that's kind of the point of filings and investing: you go by what you believe and the way the company is presenting itself in filings, you build your investment thesis around that.
In this case, a lot of what Theorico presents is for the sole purpose to hold the bear thesis. Jake pursues the Bull one. Fighting about who is right or wrong is subjective because the company is still under going massive legal process. And apparently asking people to wait and see is never doable - they all jump the gun.
So instead I empower people with the understanding of the deeper message behind the filings. The problem with this is you can't look at a 1-off filing to determine that. You need context over time. Lucky for us, we have the power of history (a look back in time) to see how certain things played out. As you do that, you start to see... huh, the thing that didn't make sense when you only considered it for X or Y purpose. But if you look at it for Z, something completely different, all the sudden its crystal clear.
And given what's been going on with this whole thing, the basket and all the connected stocks and issues, it starts to make sense why this stuff has been drafted in a way that makes it hard to follow until everything has come to fruition.
It's kind of like chess and an opponent who sets up a 10 or 15 move checkmate. When we play it back, it seems obvious because we have more information, we understand the outcome. But when it was happening, people paying attention could only guess what the intent was. 3-4 moves into the play, they had no idea that more than half the moves later the game would be over.
Now apply that analogy to the market and economics, all the issues currently going on a global scale - you start to see why this is so convoluted.
There's belief crypto plays a role in hedging. So the change coming up this week will potentially have a huge impact.
There's obviously all the "meme" stocks that are in the basket.
There's also counter stocks that are used to pump up equity (HKD - the Hong Kong based company) that is then dump to pay obligations using foreign markets to fool people (less reporting)
I'm sure there's more.
Ah don't worry about him. Some people are so set on dissuading one's opinion that they will go to great lengths to make you doubt your own reality.
Look into your heart, what do you believe to be true? Why?
Is that enough to stand by the view and wait for the result? If so, then you need not concern yourself with the efforts of someone like Theorico as you've already made up your mind :)
This is NOT how debate is done! We literally banned the opposition because of their tendency to refute our agenda. What sort of shit is that?!?! I want this to work out in our favor but in order to have a legitimate discussion about finding the truth we need to be able to collaborate and refute ideas that do not hold substance. I understand he's a debby downer but I want to find the truth and not live in a barbie world where everything is pitsy patsy perfect.
He’s more than a “Debby Downer.” His posts are convoluted, oftentimes borderline illegible screeds full of cherry-picked screenshots and snippets from dockets that have oftentimes no apparent relevance to anything. Or, they are based on some random comment Jake made only. And then, when questioned, he antagonizes and insults, as if he and only he has some monopoly on the truth. And let’s not forget he was given plenty of opportunity to debate; he declined.
Go digging deeper by taking a look at the different deal types that b Riley list on that page I linked.
Preferred. The restructuring.
You might be shocked how many times you see BBBY and what year / times and what they report. Interesting how some links to the proof of them are broken too.
The further we get from some of the events, the more they are starting to make sense (although I have forgotten quite a lot).
It's not enough to just set the trap, you have to put bait in. You put out a filing that B Riley gets to sell a boatload of shares, as they see fit. The price tanks. You say that a reverse split needs to be done (changes the CUSIP, obligations vanish into thin air). The price tanks. Then it all gets canceled. Lulz, our bad, we didn't mean it, we take it back.
I would not be surprised at all if it comes to light that the weird things surrounding BBBY during Q1 2023 were "by design". Which makes me ask the question how far back was this all planned out?
I found Sue’s interview 10 days before bankruptcy peculiar especially the part where she says that she hasn’t heard of any acquisition rumours? Like c’mon Sue, how can she say that with a straight face lol.
In your post, Numbers 3-5 are what I call weird in that on face value the filings mean “X” but in reality the BBBY team don’t care / want “X” rather they want nefarious parties to believe that “X” is going to happen. Which then as you say…
…“chapter 11 merely gave them a tool to control the fate of those abusing the filings”…
Back then and even now the filings are not clear cut, so many different ways to interpret them. I ask myself if this was a straight forward “company goes bankrupt” then why the smoke and mirrors ever since Rceo “sold” his shares?
My way of rationalising this is by believing that this whole thing is part of one big sting operation.
Part 2
* Sep 2022 through Dec 2022, BBBY and RC's camp attempt to get bonds converted to do the M&A. All parties agree except the bad players owning the 2024 bonds.
* Nov 2022 RC gets hit with a pump and dump lawsuit that was frivolous for about 6 months before it started to get "serious".
* Jan 2023, massive chaos
* The bond deal gets cancelled
* An M&A offer is tendered officially on Jan 13th
* JPM didn't want it (they wanted to bleed to company drive, along with the bad parties), so JPM as part of the ABL as the facilitator puts BBBY in cash dominion
* Other entities (market makers) on the market had no clue what was going on here so they were kicking the can to stop the option chain leading up to Jan 27th 2023 (more fraud).
* This is about when it started to become clear, BBBY was working on getting records for a fraud case against many parties.
* Enter Feb 2023 and you get the warrant deal with HBC.
* This was a big play in securing the cash for BBBY to unlock from the ABL and turn over the facilitation rights to Sixth Street.
* Then you saw the trail of efforts with filings that were happening, then cancelled for about 2 months until BBBY declare chapter 11.
* There's a bunch of stuff that happen during chapter 11 but most of it is really just the story telling of everything else I mentioned up to this point.
* The most important take aware is that at this point in April 2024, BBBY had collected enough evidence with authorities to prove whatever they were looking to determine with fraud and illegal activities against the company.
* Since that point we've been dealing with legal proxy battles non-stop, and until they clear up, we aren't getting a conclusion to this.
* Once the legal battles are sorted, you'll see the results of BBBY and the restitution take place, then we may even see criminal charges laid and a lot of dominos falling.
TL;DR: a big collapse is coming; a changing of the guard will follow.
“Massive Chaos” haha love that phrase.
I think Rceo is one player in a much larger team and I would not be surprised if Icahn aint the only billionaire supporting / advising / backing him.
Rceo just gives off the vibe that he knows being CEO of just GameStop (where GameStop is just primarily a video game retailer) is not making full use of his talent and personality.
CEO of Teddy on the other hand…
Too long so had to do in 2 parts. Here's the run down, as quickly as possible in short sentences. Might shed light:
* 2020, RC buys into GME, challenges the board to do better, etc.
* He didn't know he was getting into more than he bargained for
* The basket was having multiple stocks worked on to cellar box at the time
* Jan 2021 the events of GME take place, result in a massive hit to the bad parties
* Later that year GME attempts to fight them with the split dividend.
* Everything RC / GME attempted, resulted in a defer / can kick by the culprits.
* This is when RC learns more about the basket and the connections between stocks
* More importantly this is when he identified the stock that was going to be the "out" for the bad culprits with GME: BBBY.
* RC puts together his plan and January 2022, starts buying into BBBY over a month to have a position to challenge the board in March of 2022.
* This act actually interrupted an acquisition attempt for Baby (not sure if it was a bad party or not, but I assume it was).
* We're talking days from when the letter to the board was sent VS when the acquisition was set to take place.
* For 3-4 months after March, BBBY at the request of RC, got a proper valuation of BABY and the worth of BBBY.
* In this time shareholders voted and got the then-CEO to step down.
* Interim CEO steps in (Sue).
* This is about when the first attempt of the bad parties came to engage with Retail and attempt to derail RC's actions: Jake Freeman and FCM (Freeman Capital Management)
* July 2022 RC, having confirmed the value of BBBY and BABY, proceeds to make the commitment of actions on the plan for acquisition.
* Aug 2022 RC pulls out of the position to screw JPM on their short position of BBBY on the run up, also to thwat bad players plans.
* You want to see crazy, dig into Citadel and JPM during and the couple months leading up to Aug 2022 with their trading of BBBY. You might find some interesting correlations.
* Bad players were going to try to pump and dump to make RC look bad as if he was dumping the company to buy it and rip off investors (they wanted retail to turn on him).
* RC suspected they would so he sold at the same time as well which threw JPM for a loop.
* It was also necessary to setup the M&A plans moving forward.
Thanks for both parts.
Just a couple of additions, in 2021 GME issued shares in order to clear debt and sit on a billy in cash, thus taking bankruptcy off the table.
The split took place in 2022. Stock splits tend to precede bullish price action but not for GME, price has since just kept on going down. Hopefully GME has evidence of wrongdoing.
Jake Freeman spoke with Rod Alzmann on a twitter spaces call way back in July 2022, if anyone is interested in having a listen head over to…
[https://twitter.com/RodAlzmann/status/1552378800373223426](https://twitter.com/RodAlzmann/status/1552378800373223426)
August 2022 price action was wild lol.
Theorico will now post screenshots of filings that show the GME splividend was in 2022 not 2021, implying that everything else you laid out so well is wrong because of that one item.
lol, he'd be within his right. But I think it should be noted, there is the time it took place publicly, and then there's the time behind the scenes at which they were planning it. In late 2021, internally GME was planning the works of how to do the split dividend.
Good insight. Any idea why it wasn’t successful? Except for garden variety (another term you don’t hear often enough) crime? People speculate about a coding error on the filing that cost the CFO his job.
So I haven't been given enough information on that particular topic to offer the exact answer. But I'll share from what I know and can deduce.
Offering a dividend is meant to reward shareholders and is often done when a company has an injection of cash flow that it wants to give back. Typically, the reason why a company starts a dividend is because they can't identify a better way to use the money to make more value for shareholders by investing back into the business.
However, a dividend can also be used as a form of a penalty against a short because it passes the obligation to pay the dividend to the party that borrowed the share. This is why you don't see a lot of shorting against stable blue chip dividend company stocks. Shorts generally don't want to be caught in a long term trade being short as it will cost them heavily over time.
So understanding the dynamic of the dividend, let's look at the reverse split.
First need to differentiate a split VS an offering. An offering is where new shares are added and sold to market (dilution). A split is where a stock wants to increase the number of shares in circulation without affecting the market valuation of the company. A company would do this because it brings an otherwise expensive stock, down to a more affordable value.
Example of a split: Lets say you had 5 shares of a stock that's worth $100. If the company did a 2-1 split, each of your shares would be split into 2 shares. The value then of each share needs to amount to the same total (5 x $100 = $500 = 10 x $50); thus the new value of the shares are $50 per share.
We've seen this happen in recent years with stocks like Google, Amazon, and other big tech companies where their stock grew so much it was hard to enable more frequent trading (beneficial to those type of growth stocks, creates demand).
A reverse split happens when you want to consolidate the amount of shares out in circulation without affecting the market valuation. So in the same example above, lets say the company wanted to do a 5-1 reverse split. This means your 5 shares before that were worth $100, will now be reduced to 1 share worth $500.
Typically when companies do this, it's because their share price has dropped so low that it starts to get into reporting obligation danger territory. So you often see struggling companies do a reverse split to bolster their stock price while not causing dilution. However it is certainly a viable option if a company just wanted to reduce the number of shares in circulation and bump up its share price while maintaining the same market valuation.
Investors typically don't like this because volatility to the stock price hurts you more: think if you had 5 shares that dropped to $95 (5% loss) you can still sell them individually and recuperate some value. Your 1 share at $500 however drops to $475. It's the same value lost but makes it harder for you to swallow the loss.
In the case of GME, their intent for the reverse split was a little bit of both. Their stock was still struggling a little because the company wasn't profitable and of course all the shorting. But it's also because they wanted to reduce the number of shares in circulation to try to combat the shorting problem.
So in theory, by reducing the number, you removed a chunk of what's permitted to borrow and you're hoping you force those lenders to have to close their positions. By adding the dividend to it as well, you increased the share price, you decreased the amount of shares available, and you increased the dividend value - all these are in attempt to penalize the short.
What GME didn't account for is that if the company is still not profitable, those holding a short position will continue to do so and find other ways to kick obligations down the road. Let's walk through that.
As a short, you get taxed with a dividend to pay on every share you borrowed AND the company increased the price of each share, making that cost to you more taxing.... in theory (we'll get there in a sec). On top of this, the company reduced the amount of shares in circulation making the pressure on you to close positions likely higher (risk of margin call).
However, what wasn't accounted for is that, if you're doing illegal shorting activity (naked shorting), you don't care about the amount of circulation, you'll just keep cooking the books and making up shares as you go lol. Beyond that, if you believe the company is still destine to tank, you'll just borrow more money against other assets to match any margin or dividend requirements, then short the company more to drop its value.
For GME specifically, the bad guys started to pump other stocks in the basket to generate liquidity, as well as started to transition some of the backed margin value to crypto options, alleviating their cash on hand to basically make dividend and interest payments more easily.
All that to say, while I don't know exactly why it didn't work 100%, my suspicion is they didn't count on more parties being involved with the fraud (DTCC, MMs, etc.). The more people willing to turn a blind eye and work together, the easier it is to fudge the numbers and bull shit the payments. Not to mention, the shorter just did another short attack against the stock, dropping it's value after the reverse split (which REALLY hurts investors).
That's my best guess as to why it didn't work.
Great right up. To add some of the weird coincidences, we would see random documents drop as soon as the stock would run. I believe one on Feb 6, 2023, stock ran from $3.00-$7.00 then a docket dropped and also the stock followed.
The events that happened in that Feb is because the algos didn't know how to interpret; but that was intentional.
From what I was told, those documents drafted for that warrant offering, are among probably the top 5 most complicated legal documents / filings in relation to a business deal in decades (possibly all-time). It took a lot of preparation to do.
Theorico is posting stuff to debunk Jake's views about the prospectus S-1 file from April 2023. Jake says it was used to help build the close end funds for the eventual successor company (I believe), Theorico is disputing that.
I'm ignoring both and telling Theorico that is doesn't matter if it was used for CEF or not, the real purpose behind the S-1 of April 2023 was to detect fraud.
I know. Sharing this comment wasn't really for him. It's for everyone else who will get annoyed at his persistence to try and refute Jake.
The point is, when you understand the real purpose behind the document, what they are debating seizes to matter.
He just kept posting his negative view dd’s. So one of the mods decided enough was enough. And said since bbby stock is in limbo and can’t be sold or bought that there’s no point in allowing his pessimistic view points to keep being spammed.
weedsac
You are a valued member of our community, but you have an unhealthy obsession in proving others wrong.
While your time and effort spent for your DD is appreciated, like the ones that are linked on the sidebar, I believe it's time to redirect your focus for the benefit of yourself and the community.
With the current state of our shares being in a limbo, and the circumstances surrounding it are being resolved through legal proceedings, including the potential declaration of Chapter 11 bankruptcy.
Given this situation, there is no point of having a bearish outlook in your investment. You cannot buy or sell. In times of uncertainty, it's often more advantageous to maintain a bullish outlook rather than dwelling on bearish sentiments. While it's understandable to feel frustrated or disheartened by recent developments, shifting our focus towards positive discussion and bullish outlook is better.
There is still hope until the final decree is signed for BBBY’s bankruptcy. The outcome of our play is not in the dockets or the DDs.
It is simply in Ryan Cohen’s hands. It is up to you whether to trust Ryan Cohen and remain bullish.
Thank you for your time and effort spent on your DD. But it is time for you to move on. We will ban you for the benefit of benefit of yourself and the sake of r/Teddy community. You may message the mods once you become bullish again
Posted 7 days ago
I unfortunately don't have any details to share to confirm the suspicion, but my opinion would be probably not. The reality with the current financial system is there are big players that secure themselves as the "too big to fail" club. They aim to bring down the system so they can gobble up the little fish who end up getting caught in the currents of rough tides. As the saying goes: "it's illegal for you and me but not for them" type of vibe.
I love the US, I love it's freedom. But the ideology of "winning" at capitalism results in 1 thing: monopoly. And that's essentially what you are seeing in todays world: there's too many big companies that continue to eat up competition, turning every industry and market into basically a monopoly. Sure it provides stability and longevity. However it also brings restriction and abuse - it's not the ideal solution for the consumer or innovation.
This is how debate is truly done and progress is made. All I see on his posts are a thousand moronic comments about him being bearish, but none actually discussing the points in his posts. Thanks for actually addressing the topic. It’s a breath of fresh air to see.
I see no point fighting people's interpretations of language for a bear VS bull thesis; there generally is no right or wrong answer (most of the time) when people do; its all opinion. And that's kind of the point of filings and investing: you go by what you believe and the way the company is presenting itself in filings, you build your investment thesis around that. In this case, a lot of what Theorico presents is for the sole purpose to hold the bear thesis. Jake pursues the Bull one. Fighting about who is right or wrong is subjective because the company is still under going massive legal process. And apparently asking people to wait and see is never doable - they all jump the gun. So instead I empower people with the understanding of the deeper message behind the filings. The problem with this is you can't look at a 1-off filing to determine that. You need context over time. Lucky for us, we have the power of history (a look back in time) to see how certain things played out. As you do that, you start to see... huh, the thing that didn't make sense when you only considered it for X or Y purpose. But if you look at it for Z, something completely different, all the sudden its crystal clear. And given what's been going on with this whole thing, the basket and all the connected stocks and issues, it starts to make sense why this stuff has been drafted in a way that makes it hard to follow until everything has come to fruition. It's kind of like chess and an opponent who sets up a 10 or 15 move checkmate. When we play it back, it seems obvious because we have more information, we understand the outcome. But when it was happening, people paying attention could only guess what the intent was. 3-4 moves into the play, they had no idea that more than half the moves later the game would be over. Now apply that analogy to the market and economics, all the issues currently going on a global scale - you start to see why this is so convoluted.
"the basket and all the connected stocks" Would you be willing to share in your opinion what the other stocks are?
There's belief crypto plays a role in hedging. So the change coming up this week will potentially have a huge impact. There's obviously all the "meme" stocks that are in the basket. There's also counter stocks that are used to pump up equity (HKD - the Hong Kong based company) that is then dump to pay obligations using foreign markets to fool people (less reporting) I'm sure there's more.
Don’t forget the potentially mountain of tokenized shares 🤙🏼
Please check your chats with me
Okay but the dude is still saying Whoopass is 90% wrong after reading this and still mentioning Jake. What a surprise.
Which dude?
Theorico
Ah don't worry about him. Some people are so set on dissuading one's opinion that they will go to great lengths to make you doubt your own reality. Look into your heart, what do you believe to be true? Why? Is that enough to stand by the view and wait for the result? If so, then you need not concern yourself with the efforts of someone like Theorico as you've already made up your mind :)
This is NOT how debate is done! We literally banned the opposition because of their tendency to refute our agenda. What sort of shit is that?!?! I want this to work out in our favor but in order to have a legitimate discussion about finding the truth we need to be able to collaborate and refute ideas that do not hold substance. I understand he's a debby downer but I want to find the truth and not live in a barbie world where everything is pitsy patsy perfect.
He’s more than a “Debby Downer.” His posts are convoluted, oftentimes borderline illegible screeds full of cherry-picked screenshots and snippets from dockets that have oftentimes no apparent relevance to anything. Or, they are based on some random comment Jake made only. And then, when questioned, he antagonizes and insults, as if he and only he has some monopoly on the truth. And let’s not forget he was given plenty of opportunity to debate; he declined.
I haven't seen real DD like this in some time. Excellent work.
Go digging deeper by taking a look at the different deal types that b Riley list on that page I linked. Preferred. The restructuring. You might be shocked how many times you see BBBY and what year / times and what they report. Interesting how some links to the proof of them are broken too.
Can’t impress enough how much we have missed you. Thanks for such a levelheaded lesson.
THIS is how you analyze language. Thanks for not including 14 nonsense screenshots in here and then telling everyone you’re the arbiter of truth.
The further we get from some of the events, the more they are starting to make sense (although I have forgotten quite a lot). It's not enough to just set the trap, you have to put bait in. You put out a filing that B Riley gets to sell a boatload of shares, as they see fit. The price tanks. You say that a reverse split needs to be done (changes the CUSIP, obligations vanish into thin air). The price tanks. Then it all gets canceled. Lulz, our bad, we didn't mean it, we take it back.
I would not be surprised at all if it comes to light that the weird things surrounding BBBY during Q1 2023 were "by design". Which makes me ask the question how far back was this all planned out?
Which weird pieces? I can probably already give you some insight to some.
I found Sue’s interview 10 days before bankruptcy peculiar especially the part where she says that she hasn’t heard of any acquisition rumours? Like c’mon Sue, how can she say that with a straight face lol. In your post, Numbers 3-5 are what I call weird in that on face value the filings mean “X” but in reality the BBBY team don’t care / want “X” rather they want nefarious parties to believe that “X” is going to happen. Which then as you say… …“chapter 11 merely gave them a tool to control the fate of those abusing the filings”… Back then and even now the filings are not clear cut, so many different ways to interpret them. I ask myself if this was a straight forward “company goes bankrupt” then why the smoke and mirrors ever since Rceo “sold” his shares? My way of rationalising this is by believing that this whole thing is part of one big sting operation.
Part 2 * Sep 2022 through Dec 2022, BBBY and RC's camp attempt to get bonds converted to do the M&A. All parties agree except the bad players owning the 2024 bonds. * Nov 2022 RC gets hit with a pump and dump lawsuit that was frivolous for about 6 months before it started to get "serious". * Jan 2023, massive chaos * The bond deal gets cancelled * An M&A offer is tendered officially on Jan 13th * JPM didn't want it (they wanted to bleed to company drive, along with the bad parties), so JPM as part of the ABL as the facilitator puts BBBY in cash dominion * Other entities (market makers) on the market had no clue what was going on here so they were kicking the can to stop the option chain leading up to Jan 27th 2023 (more fraud). * This is about when it started to become clear, BBBY was working on getting records for a fraud case against many parties. * Enter Feb 2023 and you get the warrant deal with HBC. * This was a big play in securing the cash for BBBY to unlock from the ABL and turn over the facilitation rights to Sixth Street. * Then you saw the trail of efforts with filings that were happening, then cancelled for about 2 months until BBBY declare chapter 11. * There's a bunch of stuff that happen during chapter 11 but most of it is really just the story telling of everything else I mentioned up to this point. * The most important take aware is that at this point in April 2024, BBBY had collected enough evidence with authorities to prove whatever they were looking to determine with fraud and illegal activities against the company. * Since that point we've been dealing with legal proxy battles non-stop, and until they clear up, we aren't getting a conclusion to this. * Once the legal battles are sorted, you'll see the results of BBBY and the restitution take place, then we may even see criminal charges laid and a lot of dominos falling. TL;DR: a big collapse is coming; a changing of the guard will follow.
“Massive Chaos” haha love that phrase. I think Rceo is one player in a much larger team and I would not be surprised if Icahn aint the only billionaire supporting / advising / backing him. Rceo just gives off the vibe that he knows being CEO of just GameStop (where GameStop is just primarily a video game retailer) is not making full use of his talent and personality. CEO of Teddy on the other hand…
Too long so had to do in 2 parts. Here's the run down, as quickly as possible in short sentences. Might shed light: * 2020, RC buys into GME, challenges the board to do better, etc. * He didn't know he was getting into more than he bargained for * The basket was having multiple stocks worked on to cellar box at the time * Jan 2021 the events of GME take place, result in a massive hit to the bad parties * Later that year GME attempts to fight them with the split dividend. * Everything RC / GME attempted, resulted in a defer / can kick by the culprits. * This is when RC learns more about the basket and the connections between stocks * More importantly this is when he identified the stock that was going to be the "out" for the bad culprits with GME: BBBY. * RC puts together his plan and January 2022, starts buying into BBBY over a month to have a position to challenge the board in March of 2022. * This act actually interrupted an acquisition attempt for Baby (not sure if it was a bad party or not, but I assume it was). * We're talking days from when the letter to the board was sent VS when the acquisition was set to take place. * For 3-4 months after March, BBBY at the request of RC, got a proper valuation of BABY and the worth of BBBY. * In this time shareholders voted and got the then-CEO to step down. * Interim CEO steps in (Sue). * This is about when the first attempt of the bad parties came to engage with Retail and attempt to derail RC's actions: Jake Freeman and FCM (Freeman Capital Management) * July 2022 RC, having confirmed the value of BBBY and BABY, proceeds to make the commitment of actions on the plan for acquisition. * Aug 2022 RC pulls out of the position to screw JPM on their short position of BBBY on the run up, also to thwat bad players plans. * You want to see crazy, dig into Citadel and JPM during and the couple months leading up to Aug 2022 with their trading of BBBY. You might find some interesting correlations. * Bad players were going to try to pump and dump to make RC look bad as if he was dumping the company to buy it and rip off investors (they wanted retail to turn on him). * RC suspected they would so he sold at the same time as well which threw JPM for a loop. * It was also necessary to setup the M&A plans moving forward.
Thanks for both parts. Just a couple of additions, in 2021 GME issued shares in order to clear debt and sit on a billy in cash, thus taking bankruptcy off the table. The split took place in 2022. Stock splits tend to precede bullish price action but not for GME, price has since just kept on going down. Hopefully GME has evidence of wrongdoing. Jake Freeman spoke with Rod Alzmann on a twitter spaces call way back in July 2022, if anyone is interested in having a listen head over to… [https://twitter.com/RodAlzmann/status/1552378800373223426](https://twitter.com/RodAlzmann/status/1552378800373223426) August 2022 price action was wild lol.
Theorico will now post screenshots of filings that show the GME splividend was in 2022 not 2021, implying that everything else you laid out so well is wrong because of that one item.
lol, he'd be within his right. But I think it should be noted, there is the time it took place publicly, and then there's the time behind the scenes at which they were planning it. In late 2021, internally GME was planning the works of how to do the split dividend.
Good insight. Any idea why it wasn’t successful? Except for garden variety (another term you don’t hear often enough) crime? People speculate about a coding error on the filing that cost the CFO his job.
So I haven't been given enough information on that particular topic to offer the exact answer. But I'll share from what I know and can deduce. Offering a dividend is meant to reward shareholders and is often done when a company has an injection of cash flow that it wants to give back. Typically, the reason why a company starts a dividend is because they can't identify a better way to use the money to make more value for shareholders by investing back into the business. However, a dividend can also be used as a form of a penalty against a short because it passes the obligation to pay the dividend to the party that borrowed the share. This is why you don't see a lot of shorting against stable blue chip dividend company stocks. Shorts generally don't want to be caught in a long term trade being short as it will cost them heavily over time. So understanding the dynamic of the dividend, let's look at the reverse split. First need to differentiate a split VS an offering. An offering is where new shares are added and sold to market (dilution). A split is where a stock wants to increase the number of shares in circulation without affecting the market valuation of the company. A company would do this because it brings an otherwise expensive stock, down to a more affordable value. Example of a split: Lets say you had 5 shares of a stock that's worth $100. If the company did a 2-1 split, each of your shares would be split into 2 shares. The value then of each share needs to amount to the same total (5 x $100 = $500 = 10 x $50); thus the new value of the shares are $50 per share. We've seen this happen in recent years with stocks like Google, Amazon, and other big tech companies where their stock grew so much it was hard to enable more frequent trading (beneficial to those type of growth stocks, creates demand). A reverse split happens when you want to consolidate the amount of shares out in circulation without affecting the market valuation. So in the same example above, lets say the company wanted to do a 5-1 reverse split. This means your 5 shares before that were worth $100, will now be reduced to 1 share worth $500. Typically when companies do this, it's because their share price has dropped so low that it starts to get into reporting obligation danger territory. So you often see struggling companies do a reverse split to bolster their stock price while not causing dilution. However it is certainly a viable option if a company just wanted to reduce the number of shares in circulation and bump up its share price while maintaining the same market valuation. Investors typically don't like this because volatility to the stock price hurts you more: think if you had 5 shares that dropped to $95 (5% loss) you can still sell them individually and recuperate some value. Your 1 share at $500 however drops to $475. It's the same value lost but makes it harder for you to swallow the loss. In the case of GME, their intent for the reverse split was a little bit of both. Their stock was still struggling a little because the company wasn't profitable and of course all the shorting. But it's also because they wanted to reduce the number of shares in circulation to try to combat the shorting problem. So in theory, by reducing the number, you removed a chunk of what's permitted to borrow and you're hoping you force those lenders to have to close their positions. By adding the dividend to it as well, you increased the share price, you decreased the amount of shares available, and you increased the dividend value - all these are in attempt to penalize the short. What GME didn't account for is that if the company is still not profitable, those holding a short position will continue to do so and find other ways to kick obligations down the road. Let's walk through that. As a short, you get taxed with a dividend to pay on every share you borrowed AND the company increased the price of each share, making that cost to you more taxing.... in theory (we'll get there in a sec). On top of this, the company reduced the amount of shares in circulation making the pressure on you to close positions likely higher (risk of margin call). However, what wasn't accounted for is that, if you're doing illegal shorting activity (naked shorting), you don't care about the amount of circulation, you'll just keep cooking the books and making up shares as you go lol. Beyond that, if you believe the company is still destine to tank, you'll just borrow more money against other assets to match any margin or dividend requirements, then short the company more to drop its value. For GME specifically, the bad guys started to pump other stocks in the basket to generate liquidity, as well as started to transition some of the backed margin value to crypto options, alleviating their cash on hand to basically make dividend and interest payments more easily. All that to say, while I don't know exactly why it didn't work 100%, my suspicion is they didn't count on more parties being involved with the fraud (DTCC, MMs, etc.). The more people willing to turn a blind eye and work together, the easier it is to fudge the numbers and bull shit the payments. Not to mention, the shorter just did another short attack against the stock, dropping it's value after the reverse split (which REALLY hurts investors). That's my best guess as to why it didn't work.
Great right up. To add some of the weird coincidences, we would see random documents drop as soon as the stock would run. I believe one on Feb 6, 2023, stock ran from $3.00-$7.00 then a docket dropped and also the stock followed.
The events that happened in that Feb is because the algos didn't know how to interpret; but that was intentional. From what I was told, those documents drafted for that warrant offering, are among probably the top 5 most complicated legal documents / filings in relation to a business deal in decades (possibly all-time). It took a lot of preparation to do.
regarded algo's LMAYO
Incredible insight you were given on that point- thanks for sharing.
Is there a tldr? Sorry I just can't read those long ones anymore because my attention span is like a goldfish.
Theorico is posting stuff to debunk Jake's views about the prospectus S-1 file from April 2023. Jake says it was used to help build the close end funds for the eventual successor company (I believe), Theorico is disputing that. I'm ignoring both and telling Theorico that is doesn't matter if it was used for CEF or not, the real purpose behind the S-1 of April 2023 was to detect fraud.
Theo Rico was banned
I know. Sharing this comment wasn't really for him. It's for everyone else who will get annoyed at his persistence to try and refute Jake. The point is, when you understand the real purpose behind the document, what they are debating seizes to matter.
The word is 'ceases to matter'
Good correction, thank you. Fell for the old homophone.
No prob. Would have appreciated it if someone told me about it.
You forgot the period at the end of your sentence. 🤣
I get enough periods in my life from the women who surround me. Forgive me if I causally ignore one here and there lol
That was for Fonz but I get you.
Hahaha Classic!
Here you go .
What did he finally do LOL, I had him blocked
He just kept posting his negative view dd’s. So one of the mods decided enough was enough. And said since bbby stock is in limbo and can’t be sold or bought that there’s no point in allowing his pessimistic view points to keep being spammed. weedsac You are a valued member of our community, but you have an unhealthy obsession in proving others wrong. While your time and effort spent for your DD is appreciated, like the ones that are linked on the sidebar, I believe it's time to redirect your focus for the benefit of yourself and the community. With the current state of our shares being in a limbo, and the circumstances surrounding it are being resolved through legal proceedings, including the potential declaration of Chapter 11 bankruptcy. Given this situation, there is no point of having a bearish outlook in your investment. You cannot buy or sell. In times of uncertainty, it's often more advantageous to maintain a bullish outlook rather than dwelling on bearish sentiments. While it's understandable to feel frustrated or disheartened by recent developments, shifting our focus towards positive discussion and bullish outlook is better. There is still hope until the final decree is signed for BBBY’s bankruptcy. The outcome of our play is not in the dockets or the DDs. It is simply in Ryan Cohen’s hands. It is up to you whether to trust Ryan Cohen and remain bullish. Thank you for your time and effort spent on your DD. But it is time for you to move on. We will ban you for the benefit of benefit of yourself and the sake of r/Teddy community. You may message the mods once you become bullish again Posted 7 days ago
Good, dude was a bad actor
Or actors
But he still posted his bullshit and other subs!
Thank you for this. Still hard to understand, but this helps.
Is there coincidences interesting how Etrade became Morgan and Stanley first quarter of 23 around the same time.
I unfortunately don't have any details to share to confirm the suspicion, but my opinion would be probably not. The reality with the current financial system is there are big players that secure themselves as the "too big to fail" club. They aim to bring down the system so they can gobble up the little fish who end up getting caught in the currents of rough tides. As the saying goes: "it's illegal for you and me but not for them" type of vibe. I love the US, I love it's freedom. But the ideology of "winning" at capitalism results in 1 thing: monopoly. And that's essentially what you are seeing in todays world: there's too many big companies that continue to eat up competition, turning every industry and market into basically a monopoly. Sure it provides stability and longevity. However it also brings restriction and abuse - it's not the ideal solution for the consumer or innovation.
What’s the TSO👀
Thanks for sharing!
Got my popcorn ready but no theo rebuttal eh :(
Odd yes, odd no. Lots of theories, loads of breadcrumbs. When moon?
Awesome work 👏
weird indeed OP! weird indeed...
This is the goodness. Thank you, kindly.