I honestly can not believe that people still think BBBY is a squeeze opportunity via /r/wallstreetbets #stocks #wallstreetbets #investing


I honestly can not believe that people still think BBBY is a squeeze opportunity

Bed Bath and Beyond filed to sell stock in a shelf offering. The claim that management is offering only 12 million shares is really really misleading.

With a shelf offering, the company can offer an UNLIMITED amount of stock, making a squeeze impossible, especially since they have debt trading at 20% of the face value of the bonds.

Per the prospectus:

“Each time we offer securities, we will provide a prospectus supplement that will contain specific information about the terms of that offering,” the filing said.

So there really is no end to the supply of stock available for sale, and as long as the company needs money, it will tap into irrational markets to sell stock.

A squeeze is just not possible. This greater fool theory of investing really confounds me. But the amount of fools never ceases to amaze me.

Good luck longs.

Submitted August 31, 2022 at 05:03PM by tonymillergmail
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