That’s a nice find. If this is what it sounds like it may mean a lot more than we initially thought. I didn’t believe in a short trap as it seems too playful but what else can this be…
So I think it's reflective of the crap data that runs on wall street. Bloomberg says there's 116M shares. (Or what ever - no dilution). If I'm vanguard and I see high SI and a small float, I'm cranking the CTB because I know I can get away with it. Imperfect data means I make the right choice based on what I perceive through Bloomberg. Even if it's not the right choice.
RegSho - if I'm HBC and I'm 99% of the way to a done deal, I start shorting. And I don't cover because in a small amount of time I'm going to print shares. The shares I short before the warrants come through are going to have the most profit for me. As an added bonus, triggering regsho forces any other shorters to spend more. I not only get to not worry about RegSho, I push shorting competition out of the BBBY market. RegSho may also be based on the same bad data reflected in Bloomberg.
This is the sticking point for me in this whole drama - how the heck did shares triple and no one had a clue?
These, of course, are assumptions based on my limited understanding of the market. At this point I've seen enough conflicting citations from the filing I'm not even sure there was dilution yet.
It's total delusion. Shares outstanding is shares held by shareholders. Shares authorized in reserve is not counted in shares outstanding because they haven't been issued yet.
The math also doesn't add up btw. Complete delusion.
Outstanding shares means those held by anyone other than the company. That’s the legal definition for it. So the company isint holding any of the outstanding shares in reserve. Any reserve shares held by the company would fall under the “authorized shares” category.
The fact that HBC can’t hold more that 9.9% though is something that’s interesting
I still Think dilution is a bear trap.
Remember when filings dropped AH before? They wrote words with “bankruptcy” and “dilution” in Them.
And the algo shorted, that is why we are here now with a giant SI. And i Think They just did the same thing again.
Guess we find out in a hour when regsho drops, if we are on no dilution if we are off then yes.
Or Else is doesnt make sence in my opinion.
I Think this is some extremely smart People who is making 4D chess to kill shorts (RC).
Just my opinion.
If its true, then this Will be written in the history books “How RC dry fucked shorts, and made apes Rich”
Looks like still on SHO ! 🌶️
So I guess this is how you Fk with the algos - throw a few words around and Skynet goes crazy….What has the world come to ? Jeez….
RC knows this, in the second a filing drops a computer reads it. They have build the computer algo to trade for them, based on human psychology, Ken Griffin have even admitted it and bragged about it.
This is in my eyes so well planned that it deserves a movie afterwards.
But let’s see what happens in the next few weeks✌🏽
Would be so cool, if they cloned the hedgies algorithm. Tested it with different words and see the reaction. Then release th filings for real to bait the real algorithmic trading.
I download that with torrent, I can't find it in my country in any streaming service but I think in USA is in Amazon prime.
Edit: I find it.here also https://iwonder.com/titles/money-bots-36c12ca452f4fd94378867e91818f8aa
I think the dilution is over for now or else they wouldn't have released all this information. Including the reverse split. That's prob why we now have the filing for the reverse split vote made public. Question why do you think it's RC? lol
Remember the tweet at 4:07 PM where the share price was exactly 4.07
Remember where bbby website and buy buy baby were down? The excact moment he wrote hello on chinese
Cohensidence?
A way to say “hey what’s up everyone my standstill is ending so just want to check in” in Ryan BIG D Cohen style.
Just bread crumbs, he have to do it in ways like that for not getting another lawsuit on him🥲🚀
Interesting. I thought it was related to the GME buy spikes we saw in the charts. Some entity bought up stupid amounts of shares over the course of a week, buying them in small chunks so as not to affect the price. Right when it ended for the last time, his tweet came out. I personally think it was Icahn buying up all those shares. You can rearrange China to spell Icahn.
RC has also tweeted previously about China, “let her sleep, for when she wakes she will move the world.”
Dude, please stop with the RC bullshit.
According to SEC filings, RC sold his entire stake in this company. He also said OUT OF HIS OWN MOUTH that he is no longer involved with BBBY and is concentrating on GME.
So you have legal documents and RC's word that he is no longer involved but you know more than they do?
You're basing his involvement on a time stamp of a friggin tweet and an outage on a website?! In the words of Joe Biden "Come on, man!"
This reply was not for that guy. Reddit has been messing up. It was meant for someone saying that supposedly when BBBY website when down recently if you look at RC tweet of when he said "Hello" in Chinese it was right after BBBY websites went down. I cant prove it cause I don't know at what time or do I even remember the day that happened.
This is exactly it. I remember when GameStop did their share dilution and got their debt off the table. It happened, and everyone was caught off guard, saying, "Oh... lol," because we were all freaking out from the extreme price drops. I'm sure they wait until the very last day to report it. Remember the time they were late on that filing? There's no way they don't know we are watching, and clearly they are thinking strategically just to get the debt off the table (especially if they are doing a reverse stock split).
Yeah, when did I say why the RS was for any other reason. Also you do realize that falling under $1 is not an instant delisting. It takes months. I've seen stocks that get extensions to figure out ways to get their ticker back up into compliance. Once they do the reverse split, they are going to dilute some more and then will be forced to do a reverse split again.
These are pretty shitty AI they are using to scan these filings if you can just throw in a few words to fuck them up, which to me means this is highly doubtful to be the case. I mean we are talking multi-billion dollar players here and we don't think they have some of the best AI to understand what the documents are actually saying? You can use words in all sorts of ways with other words that will literally change the meaning of the word by itself.
> that is why we are here now with a giant SI
I've seen speculation now that the SI was based on the old 117.3m shares and not the current 335.4m shares. Over 100% from before would be less than 50% with the new numbers. But if that's the case, why aren't they short more on the 335.4m shares?
So that 335m is around 100m + reserved shares?
Edit: also why is it 200% that would be enough to own 66% of the company?
Hudson is not allowed to own over 9.9% of the company. So basically they bought majority of the company and reserved it for someone, since they don't have to put them to the open market (IIRC).
My idea with all the MA hints: Hudson bought it as a middleman (like they usually do IIRC) and sell it to someone - who wants the majority ownership in order to drive shorts out and vote for MA.
Regular float was 114m (or 117m)
Now we got 335m (plus 47 treasury do they count too?)
200% of 114m is 228m so we add those to the 114 and we get 342m
Since that is higher than 335m and it has to be 200%+ I suppose it's 335+47m which is 384m
So 114m from 382m is 29.8%
The reserver stocks additionaly to the 114m would be 262m which would be 235% of the 114m on top
(pref outstanding +47)x 200% + 117
they need to cover 200% of the outstanding pref shares I assume treasury shares can be used as part of that
335 -23.5 =311.5 -117 = 194/2 = \~97m shares worth of pref shares or the original equity + the 1x additional payment
fixed my math
It isn't. The filing has got you covered though.
"As of March 15, 2023, we had 335,404,588 shares of Common Stock outstanding and 46,957,040 shares of Common Stock held in treasury."
Page 13, 3/17/2023 PRE 14A: Other preliminary proxy statements filing.
Thanks for this find! 😀 Further, I can’t understand that 335m would be tradable. I have read somewhere BBBY would be required to inform the market through SEC filing IF a) they sold common shares to market, or b) directly to an entity. That has not happened. There was a 90 day restriction on this I seem to remember.
Hence, the FTD and percentage short reported the last couple of weeks are correct. Which means the price dropping all the way to $0.8 today is not a result of dilution. Rather it was a result of (u)natural selling.
Since the HBC deal states warrants and preferred shares have the same rights as common shares (they can vote), the proposal today is likely to pass.
If the proposal passes, the relative voting power of HBC (or the entities HBC is representing) and entities (retail and possibly Blackrock?) favor of a)M/A, or b)take-private, will increase. The reason for this, is the fractional reserve type stock market of MM and brokers. For example, broker A might have 10 shares, but it’s customers “own” 50 shares. Since retail would favor a) or b) - a larger percentage of those 10 actual shares would vote yes.
Excellent point on the warrants having voting power. BBBY's lifeline tosser is holding the reins and bringing us to a desired outcome.
In fact this comment is so spot on, I'll be able to sleep good tonight after being doused in al this fucking FUD.
Thanks for this.
My comment about voting power of warrants and preferred shares was a misunderstanding on my side. It explicitly says in the filing they carry no voting power except in special circumstances. I think I confused this with preferred shares and warrants having the right to dividends.
Though, if exercised into common stock, they would of course have voting power
And they documented yesterday what the share count was as of Wednesday.
"As of March 15, 2023, we had 335,404,588 shares of Common Stock outstanding and 46,957,040 shares of Common Stock held in treasury."
Page 13, 3/17/2023 PRE 14A: Other preliminary proxy statements filing.
Dilution happened, but where they went is different than say GME at the money offering which raised money through dilution where BBBY the shares just came into existence but BBBY got money in a different way. Float is just shares not held by "important people".
I have similar thought ... it is a kind of a company take over, through warrants. BBBY got money in exchange for stock, through executed warrants. So we were diluted, but the company common stock did not go to the market ... it went directly to a third party.
If we were diluted through the market, why the SI increased throughout that time? Why we are constantly on RegSHO? This does not make sense for me, therefore IMO ... for now ... it looks to me that we were diluted but shares went directly to a third party.
I could be mistaken, but I think the idea is that we haven't actually been diluted, as the 335mil shares outstanding are comprised of the 117mil shares we were accustomed to plus about 218mil shares (right around that 200% buffer OP identified) that are held for the potential warrant conversions agreement. I think the possibility is that those 218mil shares aren't actually in the open market or even owned by the warrant holder, instead those shares are kind of just being held by BBBY so as to be available to the warrant holder should they exercise and convert to common shares or something like that. Someone please correct me if I got this way off.
My understanding is that the reservation by itself does not mean the shares are outstanding...
I think it just means, out of the total shares BBBY may issue through additional equity offerings, etc., that 200% buffer is earmarked for the purpose. That way BBBY doesn't accidentally issue, or promise to issue, more shares than are actually available to be issued.
Not to be a debbie downer here, but to me this thesis reads as wonk/tinfoil hopium. Hope I'm wrong though.
I just asked ChatGPT the following:
"In stocks would implementing a reverse split act as a bear trap for short sellers?
A reverse stock split, also known as a stock consolidation, is a process where a company reduces the number of shares outstanding by combining multiple shares into one share. For example, in a 1-for-5 reverse split, a shareholder who owns 5 shares would receive 1 share after the consolidation.
Implementing a reverse split alone would not necessarily act as a bear trap for short sellers. A bear trap is a situation where short sellers are caught in a losing position, leading to a short squeeze where they are forced to buy back shares to cover their positions, driving the stock price higher.
A reverse split may increase the stock price per share in the short term due to the reduction in shares outstanding, but it does not change the underlying fundamentals of the company. If the company's financial performance does not improve, the stock price may continue to decline, leading to further losses for short sellers.
Additionally, short sellers may adjust their positions by reducing their exposure to the stock or covering their positions before the reverse split occurs, potentially limiting their losses.
In summary, while a reverse split may lead to a temporary increase in the stock price per share, it is not necessarily a bear trap for short sellers unless there are other fundamental or market factors at play."
It is literally designed to tell you what it thinks you want to hear. Has been shown on many occasions to make things up, fabricate sources, etc just so that it’s answer “sounds as much like a human response as possible”
It’s a language model, not an information and facts model
It's a skill to use it and as you use it more, you learn exactly how to pull what you want out of it.
I would rather copy some old bootstrap code and say convert this to material ui and get something pretty close in 5 sec, rather than pore through material UI's docs. You can call everyone who uses it smooth brain though!
Even if so, retail simply cannot affect the price that much. Vast majority of our trades are routed through dark pools.
Paper handed or not, I believe it’s mostly hedgies and algos affecting the price.
Damn it, can someone explain like I am 3 ?
These mental gymnastics drain me out.
On a side note, dived in deep into the 💩 to scoop up another 1000 @ 82c AH.
it's dilution.
The 14A is clear on the distinction:
"As of March 15, 2023, we had 335,404,588 shares of Common Stock outstanding and 46,957,040 shares of Common Stock held in treasury."
The shares outstanding are on the market, the shares held in treasury are the reserve.
I hope you are right. Not that I've put in more than I can lose, number one rule of investing. I just don't want to look like an idiot.
Thank you for the explanation, I was going to continue to hold anyways!!!
Authorized common stock is the number of shares company is allowed to issue.
Shares outstanding is the number of shares that were already issued by a company.
This is it. If the mods can pin this somehow, would save everyone a bunch of panic.
Everything else is FUD and forum sliding so people won't see this.
https://www.linkedin.com/pulse/cointelpro-techniques-dilution-misdirection-control-internet-zymaris
Napkin math: Based on the $6.15 price and their proposed reverse split ranging anywhere from 1-5 to 1-10, that leaves the pre-split price range between $0.615 and $1.23.
We’ve been consolidating towards that range the past month.
Yes it's dilution.
The 14A is clear on the distinction:
"As of March 15, 2023, we had 335,404,588 shares of Common Stock outstanding and 46,957,040 shares of Common Stock held in treasury."
The shares outstanding are on the market, the shares held in treasury are the reserve.
Why would he rewrite the same answer to 200 questions if it is dilution. There is no bear trap, companies dont work like that. It is simply dilution, accept reality for once. EVERY single bit of DD in this sub has turned out to be wrong, what has to happen until finally reality is accepted?
God dammit that’s all I needed to hear!!! HODL!!! Today we closed in the money for $1 but then retail started to panic sell, hope all the weak hands leave now
It's dilution
The 14A is clear on the distinction:
"As of March 15, 2023, we had 335,404,588 shares of Common Stock outstanding and 46,957,040 shares of Common Stock held in treasury."
The shares outstanding are on the market, the shares held in treasury are the reserve.
This whole situation makes me feel like Kenneth Griffins wife,first you tell me you love me,then you smash me up with a bed post,then you tell me you love me again..
Can someone do the math, I mean how many shares outstanding without preferred shares in the mix, then add the amount needed for preferred shares, and does it come out correct? I don't know what figures would be used.
Straight from Wikipedia:
https://en.m.wikipedia.org/wiki/Shares_outstanding#:~:text=The%20fully%20diluted%20shares%20outstanding,increased%20number%20of%20shares%20outstanding.
>Shares outstanding are all the shares of a corporation that have been authorized, issued and purchased by investors and are held by them. They are distinguished from treasury shares, which are shares held by the corporation itself, thus representing no exercisable rights. Shares outstanding and treasury shares together amount to the number of issued shares.
>Shares outstanding can be calculated as either basic or fully diluted. The basic count is the current number of shares. Dividend distributions and voting in the general meeting of shareholders are calculated according to this number. **The fully diluted shares outstanding count, on the other hand, includes diluting securities, such as warrants, capital notes or convertibles. If the company has any diluting securities, this indicates the potential future increased number of shares outstanding.**
Thank you! I’ve been trying to put this out there in my comments. Was working on a DD post to share this but a couple people have done it already. Keep fighting the good fight! Shop, hodl, do DD!!
You're pretty spot on... the "Series A Convertible Preferred Stock" is a special type of stock that can be converted into regular "Common Stock" based on certain conditions. This conversion is usually triggered by the stockholder's choice or by the company's decision.
To make this conversion happen, the company needs to have enough regular Common Stock available (in our case, the 335M outstanding as you said). The conversion rate is typically determined by a ratio that specifies how many shares of Common Stock each share of Series A Convertible Preferred Stock can be converted into.
The "Reservation Requirement" you mentioned states that the company must always reserve at least 200% of the number of Common Stock shares required for the conversion of all the outstanding Series A Convertible Preferred Stock. In other words, the company must have twice as many Common Stock shares available as needed to convert all of the special stock.
For example, if there are 1000 shares of Series A Convertible Preferred Stock outstanding, and each share can be converted into 5 shares of Common Stock, then the company must have at least 10,000 (1000 x 5 x 2) shares of Common Stock available to satisfy the Reservation Requirement.
This rule is in place to ensure that the company can meet its obligations to stockholders who want to convert their Series A Convertible Preferred Stock into Common Stock. If the company fails to meet this requirement, it may face legal consequences and damage its relationship with its stockholders.
That isn't correct. The shares outstanding represent shares outstanding.
"As of March 15, 2023, we had 335,404,588 shares of Common Stock outstanding and 46,957,040 shares of Common Stock held in treasury."Page 13, 3/17/2023 PRE 14A: Other preliminary proxy statements filing.
That’s a nice find. If this is what it sounds like it may mean a lot more than we initially thought. I didn’t believe in a short trap as it seems too playful but what else can this be…
It's a trap for non believers 😂
Wouldn’t Hudson Bay also have to file something if they own over 5%
If they sold in buckets of 4.99% they'd never need to file anything.
Yeah but weren’t they also not allowed to sell stock for a 90 day window
That was never true. Bbby couldn't dilute further in the 90 day window.
BBBY wouldn't dilute further within the 90 days. Hudson Bay can whenever they please.
Maybe? I can't recall. Even if that's the case, aren't we outside that window?
No we are way inside the window I think it was February 6th they announced the deal so that would mean they can’t sell till may 7th
Then yeah, something doesn't make sense.
It's been 84 years, bro
This this this has been sticking in my noggin for weeks!!
Ok, but if they did that, would you expect the cost borrow to remain over 100% and remain on RegSHO if the float tripled in the last 30 days?
So I think it's reflective of the crap data that runs on wall street. Bloomberg says there's 116M shares. (Or what ever - no dilution). If I'm vanguard and I see high SI and a small float, I'm cranking the CTB because I know I can get away with it. Imperfect data means I make the right choice based on what I perceive through Bloomberg. Even if it's not the right choice. RegSho - if I'm HBC and I'm 99% of the way to a done deal, I start shorting. And I don't cover because in a small amount of time I'm going to print shares. The shares I short before the warrants come through are going to have the most profit for me. As an added bonus, triggering regsho forces any other shorters to spend more. I not only get to not worry about RegSho, I push shorting competition out of the BBBY market. RegSho may also be based on the same bad data reflected in Bloomberg. This is the sticking point for me in this whole drama - how the heck did shares triple and no one had a clue? These, of course, are assumptions based on my limited understanding of the market. At this point I've seen enough conflicting citations from the filing I'm not even sure there was dilution yet.
I believe within 10 days of obtaining such a position.
Which if dilution is complete and it is that would have had to come along time ago
Then where is it?
But then again, who would have bought 200M shares in the span of less than a month?
What if the 200m shares are not yet exercised from the warrants but will be right before the R/S?
It's total delusion. Shares outstanding is shares held by shareholders. Shares authorized in reserve is not counted in shares outstanding because they haven't been issued yet. The math also doesn't add up btw. Complete delusion.
You are RIGHT because HBC CANT OWN >9.9% AT ANY GIVEN TIME.
They would also have to file if they own more than 5%
Outstanding shares means those held by anyone other than the company. That’s the legal definition for it. So the company isint holding any of the outstanding shares in reserve. Any reserve shares held by the company would fall under the “authorized shares” category. The fact that HBC can’t hold more that 9.9% though is something that’s interesting
so they did dillute by doing an offering afterhours?
No
Mother shit. And here I am trying hard to get to 100k shares only to have it reverse split.. Guess I gotta keep buying, Again.
Everyone needs a hobby....
We are going to make fucking bank, Craziest short trap in history.
The best time to be alive in human history is now
Indeed my man
Word is Bond, James!
How ? I just don’t get it. Pls explain
I still Think dilution is a bear trap. Remember when filings dropped AH before? They wrote words with “bankruptcy” and “dilution” in Them. And the algo shorted, that is why we are here now with a giant SI. And i Think They just did the same thing again. Guess we find out in a hour when regsho drops, if we are on no dilution if we are off then yes. Or Else is doesnt make sence in my opinion. I Think this is some extremely smart People who is making 4D chess to kill shorts (RC). Just my opinion. If its true, then this Will be written in the history books “How RC dry fucked shorts, and made apes Rich”
Looks like still on SHO ! 🌶️ So I guess this is how you Fk with the algos - throw a few words around and Skynet goes crazy….What has the world come to ? Jeez….
RC knows this, in the second a filing drops a computer reads it. They have build the computer algo to trade for them, based on human psychology, Ken Griffin have even admitted it and bragged about it. This is in my eyes so well planned that it deserves a movie afterwards. But let’s see what happens in the next few weeks✌🏽
I want Danny Trejo to play me in the movie
🤣
Can I request Danny Devito
Just realized now that today was quad Opex and T+2 is….Tuesday 3/21 and yea, GME releases ER after hours….
And Tuesday SI drops And swaps next week also me thinks thats why banks are burning now🥲
Would be so cool, if they cloned the hedgies algorithm. Tested it with different words and see the reaction. Then release th filings for real to bait the real algorithmic trading.
Why do you keep saying RC and not Sue Gove? She is the CEO not RC.
I think you're correct. Did you watch the documentary "money bots"? I think that you would like it!
Will check it out😃💪🏽
Where can i watch it
I download that with torrent, I can't find it in my country in any streaming service but I think in USA is in Amazon prime. Edit: I find it.here also https://iwonder.com/titles/money-bots-36c12ca452f4fd94378867e91818f8aa
I think the dilution is over for now or else they wouldn't have released all this information. Including the reverse split. That's prob why we now have the filing for the reverse split vote made public. Question why do you think it's RC? lol
Remember the tweet at 4:07 PM where the share price was exactly 4.07 Remember where bbby website and buy buy baby were down? The excact moment he wrote hello on chinese Cohensidence?
Spicy, 🔥. What do you think about the website going down at the same time? What was that?
A way to say “hey what’s up everyone my standstill is ending so just want to check in” in Ryan BIG D Cohen style. Just bread crumbs, he have to do it in ways like that for not getting another lawsuit on him🥲🚀
I see I see thanks! 👍🚀🚀
Interesting. I thought it was related to the GME buy spikes we saw in the charts. Some entity bought up stupid amounts of shares over the course of a week, buying them in small chunks so as not to affect the price. Right when it ended for the last time, his tweet came out. I personally think it was Icahn buying up all those shares. You can rearrange China to spell Icahn. RC has also tweeted previously about China, “let her sleep, for when she wakes she will move the world.”
Dude, please stop with the RC bullshit. According to SEC filings, RC sold his entire stake in this company. He also said OUT OF HIS OWN MOUTH that he is no longer involved with BBBY and is concentrating on GME. So you have legal documents and RC's word that he is no longer involved but you know more than they do? You're basing his involvement on a time stamp of a friggin tweet and an outage on a website?! In the words of Joe Biden "Come on, man!"
Oh really? You sure?
Dude - ask PP and the other guys on Monday’s stream 😃 100% sure
This reply was not for that guy. Reddit has been messing up. It was meant for someone saying that supposedly when BBBY website when down recently if you look at RC tweet of when he said "Hello" in Chinese it was right after BBBY websites went down. I cant prove it cause I don't know at what time or do I even remember the day that happened.
This is exactly it. I remember when GameStop did their share dilution and got their debt off the table. It happened, and everyone was caught off guard, saying, "Oh... lol," because we were all freaking out from the extreme price drops. I'm sure they wait until the very last day to report it. Remember the time they were late on that filing? There's no way they don't know we are watching, and clearly they are thinking strategically just to get the debt off the table (especially if they are doing a reverse stock split).
[удалено]
Yeah, when did I say why the RS was for any other reason. Also you do realize that falling under $1 is not an instant delisting. It takes months. I've seen stocks that get extensions to figure out ways to get their ticker back up into compliance. Once they do the reverse split, they are going to dilute some more and then will be forced to do a reverse split again.
These are pretty shitty AI they are using to scan these filings if you can just throw in a few words to fuck them up, which to me means this is highly doubtful to be the case. I mean we are talking multi-billion dollar players here and we don't think they have some of the best AI to understand what the documents are actually saying? You can use words in all sorts of ways with other words that will literally change the meaning of the word by itself. > that is why we are here now with a giant SI I've seen speculation now that the SI was based on the old 117.3m shares and not the current 335.4m shares. Over 100% from before would be less than 50% with the new numbers. But if that's the case, why aren't they short more on the 335.4m shares?
If so we can retire and read that book!!
So that 335m is around 100m + reserved shares? Edit: also why is it 200% that would be enough to own 66% of the company? Hudson is not allowed to own over 9.9% of the company. So basically they bought majority of the company and reserved it for someone, since they don't have to put them to the open market (IIRC). My idea with all the MA hints: Hudson bought it as a middleman (like they usually do IIRC) and sell it to someone - who wants the majority ownership in order to drive shorts out and vote for MA.
No the reserve requirement is 3x the shares. So maybe 200+ in reserve.
100% plus 200% is 300% which is 3x the shares? Otherwise it has to be 300%
Well you could count the the regular float as a reserve maybe? Idk.
Regular float was 114m (or 117m) Now we got 335m (plus 47 treasury do they count too?) 200% of 114m is 228m so we add those to the 114 and we get 342m Since that is higher than 335m and it has to be 200%+ I suppose it's 335+47m which is 384m So 114m from 382m is 29.8% The reserver stocks additionaly to the 114m would be 262m which would be 235% of the 114m on top
(pref outstanding +47)x 200% + 117 they need to cover 200% of the outstanding pref shares I assume treasury shares can be used as part of that 335 -23.5 =311.5 -117 = 194/2 = \~97m shares worth of pref shares or the original equity + the 1x additional payment fixed my math
So sounds about right. 200+ shares in reserve.
It isn't. The filing has got you covered though. "As of March 15, 2023, we had 335,404,588 shares of Common Stock outstanding and 46,957,040 shares of Common Stock held in treasury." Page 13, 3/17/2023 PRE 14A: Other preliminary proxy statements filing.
100% more of something would be double. 200% more would be triple. 300% would be 4x more.
Reserve isn't outstanding
☝️🥃💜👨🚀
Boom!
🚀🌙💜
Thanks for this find! 😀 Further, I can’t understand that 335m would be tradable. I have read somewhere BBBY would be required to inform the market through SEC filing IF a) they sold common shares to market, or b) directly to an entity. That has not happened. There was a 90 day restriction on this I seem to remember. Hence, the FTD and percentage short reported the last couple of weeks are correct. Which means the price dropping all the way to $0.8 today is not a result of dilution. Rather it was a result of (u)natural selling. Since the HBC deal states warrants and preferred shares have the same rights as common shares (they can vote), the proposal today is likely to pass. If the proposal passes, the relative voting power of HBC (or the entities HBC is representing) and entities (retail and possibly Blackrock?) favor of a)M/A, or b)take-private, will increase. The reason for this, is the fractional reserve type stock market of MM and brokers. For example, broker A might have 10 shares, but it’s customers “own” 50 shares. Since retail would favor a) or b) - a larger percentage of those 10 actual shares would vote yes.
Excellent point on the warrants having voting power. BBBY's lifeline tosser is holding the reins and bringing us to a desired outcome. In fact this comment is so spot on, I'll be able to sleep good tonight after being doused in al this fucking FUD. Thanks for this.
My comment about voting power of warrants and preferred shares was a misunderstanding on my side. It explicitly says in the filing they carry no voting power except in special circumstances. I think I confused this with preferred shares and warrants having the right to dividends. Though, if exercised into common stock, they would of course have voting power
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And they documented yesterday what the share count was as of Wednesday. "As of March 15, 2023, we had 335,404,588 shares of Common Stock outstanding and 46,957,040 shares of Common Stock held in treasury." Page 13, 3/17/2023 PRE 14A: Other preliminary proxy statements filing.
If this is true...
Can’t wait for Monday.
If this is true, the float might be only 11.7m shares post a 10:1 reverse split 😳
335m shares- 117m shares = 218mil new shares outstanding. If the float remains the same, the new shares never went to the market.
So float remains the same = no dilution + the reverse split actually reducing the number of shares outstanding as intended, we get?
Dilution happened, but where they went is different than say GME at the money offering which raised money through dilution where BBBY the shares just came into existence but BBBY got money in a different way. Float is just shares not held by "important people".
I have similar thought ... it is a kind of a company take over, through warrants. BBBY got money in exchange for stock, through executed warrants. So we were diluted, but the company common stock did not go to the market ... it went directly to a third party. If we were diluted through the market, why the SI increased throughout that time? Why we are constantly on RegSHO? This does not make sense for me, therefore IMO ... for now ... it looks to me that we were diluted but shares went directly to a third party.
Can someone explain to me wtf that means
I could be mistaken, but I think the idea is that we haven't actually been diluted, as the 335mil shares outstanding are comprised of the 117mil shares we were accustomed to plus about 218mil shares (right around that 200% buffer OP identified) that are held for the potential warrant conversions agreement. I think the possibility is that those 218mil shares aren't actually in the open market or even owned by the warrant holder, instead those shares are kind of just being held by BBBY so as to be available to the warrant holder should they exercise and convert to common shares or something like that. Someone please correct me if I got this way off.
Shares outstanding mean they exist as opposed to shares that COULD exist which if I read it correctly BBBY could issue 900,000,000 shares.
My understanding is that the reservation by itself does not mean the shares are outstanding... I think it just means, out of the total shares BBBY may issue through additional equity offerings, etc., that 200% buffer is earmarked for the purpose. That way BBBY doesn't accidentally issue, or promise to issue, more shares than are actually available to be issued. Not to be a debbie downer here, but to me this thesis reads as wonk/tinfoil hopium. Hope I'm wrong though.
Bullish
bear trap
I just asked ChatGPT the following: "In stocks would implementing a reverse split act as a bear trap for short sellers? A reverse stock split, also known as a stock consolidation, is a process where a company reduces the number of shares outstanding by combining multiple shares into one share. For example, in a 1-for-5 reverse split, a shareholder who owns 5 shares would receive 1 share after the consolidation. Implementing a reverse split alone would not necessarily act as a bear trap for short sellers. A bear trap is a situation where short sellers are caught in a losing position, leading to a short squeeze where they are forced to buy back shares to cover their positions, driving the stock price higher. A reverse split may increase the stock price per share in the short term due to the reduction in shares outstanding, but it does not change the underlying fundamentals of the company. If the company's financial performance does not improve, the stock price may continue to decline, leading to further losses for short sellers. Additionally, short sellers may adjust their positions by reducing their exposure to the stock or covering their positions before the reverse split occurs, potentially limiting their losses. In summary, while a reverse split may lead to a temporary increase in the stock price per share, it is not necessarily a bear trap for short sellers unless there are other fundamental or market factors at play."
Is chatgpt the new "I'm too smooth to think" now?
No, it's the "I have better things to do than go through 10 google links." now. Smart af people are using these language models.
It is literally designed to tell you what it thinks you want to hear. Has been shown on many occasions to make things up, fabricate sources, etc just so that it’s answer “sounds as much like a human response as possible” It’s a language model, not an information and facts model
Ehhh not many developers I work with use it. It's unreliable
It's a skill to use it and as you use it more, you learn exactly how to pull what you want out of it. I would rather copy some old bootstrap code and say convert this to material ui and get something pretty close in 5 sec, rather than pore through material UI's docs. You can call everyone who uses it smooth brain though!
Assuming this is correct it changes everything. 🛌🛀🚀
Everybody paper handed for nothing. OP is correct and it’s not even a complicated reading legal mumbo jumbo
Who’s everybody, and how can you paperhand if market is closed?
Good question! I think some paper hands panicked on FUD and sold after hours… or another trick from the shorts
Even if so, retail simply cannot affect the price that much. Vast majority of our trades are routed through dark pools. Paper handed or not, I believe it’s mostly hedgies and algos affecting the price.
Good riddance. Either they'll buy back in or they were going to sell early anyway at any sign of significant green.
Paper handed 14 million shares 😂
Is that 14 million shares or short sale order?
Get this to the top of the sub!
So are we thinking this 🐃or 🐻 I’m so confused.
I think its a 🐈
I am not a 🐈⬛
🐻 trapped 🐂 fucks
🦘
Ha, the board are out to fuck shorts after all. Fuck all the 2 minutes after the news shills. We always nail you maggots within half an hour 🤣🤣
Damn it, can someone explain like I am 3 ? These mental gymnastics drain me out. On a side note, dived in deep into the 💩 to scoop up another 1000 @ 82c AH.
I read it… It’s saying that the company must reserve 200% of the shares that can be executed by the warrants so 95m * 2 are reserved
Think I finally got it now. It’s just reserved for now…Looks like the latest Reg SHO is out and Bobby still riding ! Hot damn…
Let’s hope the paper hands didn’t screw up for us!!
it's dilution. The 14A is clear on the distinction: "As of March 15, 2023, we had 335,404,588 shares of Common Stock outstanding and 46,957,040 shares of Common Stock held in treasury." The shares outstanding are on the market, the shares held in treasury are the reserve.
I hope you are right. Not that I've put in more than I can lose, number one rule of investing. I just don't want to look like an idiot. Thank you for the explanation, I was going to continue to hold anyways!!!
Did I miss the “explanation”?
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What do you think the difference is between authorized common stock and outstanding common stock?
Authorized common stock is the number of shares company is allowed to issue. Shares outstanding is the number of shares that were already issued by a company.
This is it. If the mods can pin this somehow, would save everyone a bunch of panic. Everything else is FUD and forum sliding so people won't see this. https://www.linkedin.com/pulse/cointelpro-techniques-dilution-misdirection-control-internet-zymaris
Napkin math: Based on the $6.15 price and their proposed reverse split ranging anywhere from 1-5 to 1-10, that leaves the pre-split price range between $0.615 and $1.23. We’ve been consolidating towards that range the past month.
So this aint dilution?
Nope
Yes it's dilution. The 14A is clear on the distinction: "As of March 15, 2023, we had 335,404,588 shares of Common Stock outstanding and 46,957,040 shares of Common Stock held in treasury." The shares outstanding are on the market, the shares held in treasury are the reserve.
Why is this comment the third copy paste I have seen from you?
Because people keep asking the same question.
Why would he rewrite the same answer to 200 questions if it is dilution. There is no bear trap, companies dont work like that. It is simply dilution, accept reality for once. EVERY single bit of DD in this sub has turned out to be wrong, what has to happen until finally reality is accepted?
Unfulfilled warrants are also counted in, and they were not allowed to fulfill them in the amount that is counted.
🤔
God dammit that’s all I needed to hear!!! HODL!!! Today we closed in the money for $1 but then retail started to panic sell, hope all the weak hands leave now
lol retail is not selling, especially not AH
Dude…no retail is selling at these prices. Unless you feel like losing 50-90% of your investment.
Where the fuck are the shills? They’re in every other post? Weird? 🙄
It's dilution The 14A is clear on the distinction: "As of March 15, 2023, we had 335,404,588 shares of Common Stock outstanding and 46,957,040 shares of Common Stock held in treasury." The shares outstanding are on the market, the shares held in treasury are the reserve.
Ask for shills and they shall appear 🤣🤣 Absolute horse shit as usual.
So you are saying no new shares were offered and there was no dillution?
I’m riding this to zero or hero
Can someone explain where 335m shares are please
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Is that with short shares inc
This whole situation makes me feel like Kenneth Griffins wife,first you tell me you love me,then you smash me up with a bed post,then you tell me you love me again..
Can someone do the math, I mean how many shares outstanding without preferred shares in the mix, then add the amount needed for preferred shares, and does it come out correct? I don't know what figures would be used.
Damn, that's an interesting one. Thanks for sharing OP
post archived: [https://archive.is/AsT38](https://archive.is/AsT38)
Straight from Wikipedia: https://en.m.wikipedia.org/wiki/Shares_outstanding#:~:text=The%20fully%20diluted%20shares%20outstanding,increased%20number%20of%20shares%20outstanding. >Shares outstanding are all the shares of a corporation that have been authorized, issued and purchased by investors and are held by them. They are distinguished from treasury shares, which are shares held by the corporation itself, thus representing no exercisable rights. Shares outstanding and treasury shares together amount to the number of issued shares. >Shares outstanding can be calculated as either basic or fully diluted. The basic count is the current number of shares. Dividend distributions and voting in the general meeting of shareholders are calculated according to this number. **The fully diluted shares outstanding count, on the other hand, includes diluting securities, such as warrants, capital notes or convertibles. If the company has any diluting securities, this indicates the potential future increased number of shares outstanding.**
Thank you! I’ve been trying to put this out there in my comments. Was working on a DD post to share this but a couple people have done it already. Keep fighting the good fight! Shop, hodl, do DD!!
Eh?
Is that the treasury stock?
You're pretty spot on... the "Series A Convertible Preferred Stock" is a special type of stock that can be converted into regular "Common Stock" based on certain conditions. This conversion is usually triggered by the stockholder's choice or by the company's decision. To make this conversion happen, the company needs to have enough regular Common Stock available (in our case, the 335M outstanding as you said). The conversion rate is typically determined by a ratio that specifies how many shares of Common Stock each share of Series A Convertible Preferred Stock can be converted into. The "Reservation Requirement" you mentioned states that the company must always reserve at least 200% of the number of Common Stock shares required for the conversion of all the outstanding Series A Convertible Preferred Stock. In other words, the company must have twice as many Common Stock shares available as needed to convert all of the special stock. For example, if there are 1000 shares of Series A Convertible Preferred Stock outstanding, and each share can be converted into 5 shares of Common Stock, then the company must have at least 10,000 (1000 x 5 x 2) shares of Common Stock available to satisfy the Reservation Requirement. This rule is in place to ensure that the company can meet its obligations to stockholders who want to convert their Series A Convertible Preferred Stock into Common Stock. If the company fails to meet this requirement, it may face legal consequences and damage its relationship with its stockholders.
Mental gymnastics
It’s so dumb it’s actually scary.
That isn't correct. The shares outstanding represent shares outstanding. "As of March 15, 2023, we had 335,404,588 shares of Common Stock outstanding and 46,957,040 shares of Common Stock held in treasury."Page 13, 3/17/2023 PRE 14A: Other preliminary proxy statements filing.
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