Squeeze is 100% happening. Let me explain.
Let’s look at the facts:
First off: Today’s announcement. It’s a wide misconception in this sub that the announcement was negative in any way, shape or form. The company plans to cut the worst performing 150 stores, which is less than 10% of all. They’re also going to sack two least useful C-Level executives, and they’ve secured a loan of more than $1B. All these things (and the additional share offering which I’m about to talk about) will make the company boatloads of money, effectively taking even the slightest possibility of a bankruptcy in the foreseeable future, OFF the table. Now, the filing. It’s capped at 12 million shares, which is the absolute maximum that they have a probability of offering, so absolute worst case scenario is the stock value drops by 15%. Given that the estimated real valuation should be around 70-80$, that still puts the current price at a criminally underrated position. So far I’ve given one reason for a squeeze, (the shorts’ entire bet/argument was that BBBY was going bankrupt, and that’s entirely called off so there’s absolutely no reason not to exit their positions) as well as a reason that it’s one of the most undervalued stocks out there (see above). Is that all? Nope. What everyone seems to have forgotten about is RegSHO, which a price drop doesn’t deactivate. Naked hedgies are still required by law to buy all their FTD’s by friday, and market makers are by Sept. 20th. Look at this from their POV: they have no money left, no power, and are about to be fucked by the SEC. This LITERALLY can’t go tits up for us. I’m therefore making a BAN BET that BBBY will reach $50 at the very least over the next six months.
Positions: 911 shares at $10.11, 49 shares at $14,13 and 30 shares at $10.68
Not Financial Advice
Submitted August 31, 2022 at 05:56PM by North_Sheep
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