Did He Sell….or Did He? His cost basis is $15.34
Yet another regarded post about the same topic but it seems no one here read the whole damn filings. Yeah the filling is real and yeah the EDGAR page is a legit place to read properly the damn SEC filings that are a mess on their official page.
Anyways…RC started buying in early Jan 2022
https://bedbathandbeyond.gcs-web.com/node/15731/html (13D Filing From Feb 24 2022)
Amassing a total of 7,780,000 shares and 1,670,100 shares from call options totaling the 9,450,100 shares to be sold on From 144.
His cost basis for the common shares bought is $15.34
Contrary to what everyone wants to think we don't know yet if he sold. This mechanism is used because he has the bonafide intent of selling. You cannot abuse filing this form and have no intent of selling, it would be manipulation.
Another talking point thrown around is that "HE CANT SELL PROFITS GO BACK TO BBBY". This is the short-swing profit rule:
The short-swing profit rule is a Securities and Exchange Commission (SEC) regulation that requires company insiders to return any profits made from the purchase and sale of company stock if both transactions occur within a six-month period.
A company insider, as determined by the rule, is any officer, director, or shareholder who owns more than 10% of the company's shares.
Key takeaway here:
- The short-swing profit rule, also known as the Section 16b rule, is an SEC regulation that prevents insiders in a publicly traded company from reaping short-term profits
- The short-swing profit rule requires company insiders to return to the company any profits made from the purchase and sale of company stock if both transactions occur within a six-month period.
- The rule applies to any shareholder who owns more than 10% of a class of the company's equity securities registered under the Securities Exchange Act, and to the company's officers and directors
From the 144 filling RC Ventures is a 10% stake holder (Fig3) but most of his purchases are already outside of the 6 month window(Fig1 and Fig2). So stating that ALL of his profits will go back to BBBY and that would prevent him from selling is not accurate.
So from the 13D filing you can see that he cannot sell yet his call option contracts for $60, $75 or $80 strike prices until the end of the August (technically Aug 28) and the start of September but he can sell most of his stock positions already.
Can he sell? = YES HE CAN
Can he sell everything? = NOOOOOO
Did he sell anything? = We don't fucking know
Submitted August 18, 2022 at 05:44AM by itwillrainsoon
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