habitualpotatoes



















Top is BBBY's statement today. Bottom is a statement by Redbox Entertainment last March, shortly before their acquisition by Chicken Soup for the Soul Entertainment. The All-Stock deal resulted in Redbox's share price increasing from $2.42 to $18.20 in a month before the M&A deal was finalised.

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NEWS LEAK: Last week during Pro Week, GameStop stores sold over 355,000 Power Up Pro Rewards renewals and/or new sign-ups, the biggest week in GameStop history. The prior record of 308,000 Power Up Pro Rewards renewals and/or new signups was in 2016. This represents a 13% increase. BULLISH.

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  1. Why would they be closing stores, warehouses and laying off people outside the protection of Chapter 11? That's what I can't get my head around.

  2. So if CTB stays at this price, then all shorts must exit within 4.5 months-ish to at best break even.

  3. Numbers are just examples. I haven't read the terms of the ABL in a long time, so it might be multiples of stock value so could easily be any number of xxxxm

  4. Yeah - that is something that I don't get (made a post about it yesterday as being a positive confirmation).

  5. Most important thing here is if they were heading to Chapter 11 they would 100% (IMO) get the paperwork done before paying out the coupon payment.

  6. Side note but didn’t Martin Shkreli, the original WSB degen, buy the entire rights to a Wu Tang album? Or have I made that up? I know he tried to purchase all the rights to drakes “Life of Pablo” album too but drake didn’t sell it to him lol

  7. Yes he did, it was the RC album. It was auctioned off as part of criminal proceeds (I think) and that was when PleasrDAO (sp?) - that RC was tinfoil definitely a member of- bought it.

  8. Anyone else seeing really wide and off Bid/ask prices? Like a MM is no longer managing them with liquidity?

  9. Can you explain in more joined-up-thinking how this links back to Ben and what the two first mentioned companies are in relation to PFS?

  10. Any chance a MM has stopped providing liquidity. It's their role to make sure the Bid/Ask spread is maintained within a certain number of points, depending on the value of the stock. The fact that it's not, without heavy buying and selling pressure, makes it seem like it's not being supported anymore for some reason.

  11. Blackrock didn't buy more shares. It's a form that they complete every year as they hold over 10% of the stock. Read back to last years form.

  12. Thanks for clearing that out. And yes indeed, it's peanuts for them....

  13. So looks like no announcement today. They always seem to get news out at least an hour before market opens. Still fingers crossed for a big impact, but was hoping/semi-expecting for news from BBBY.

  14. Nope - I was not going to be surprised at an announcement today because

  15. In so far as it has no predictive power. Every big post we’ve had here over the last 2 years predicting going back to ath or predicting the bottom has never played out. It shouldn’t be taken seriously, it’s like going to have your palm read by a gypsy.

  16. I called the exact date that GME would run up and the exact amount it would run up to in a series of posts that went up 1 month before the event happened, when we ran from $80-ish to just shy of $200 back in March.

  17. The discounting was dumping the lines that they are no longer carrying and needing to clear this inventory.

  18. SG&A is down to 583mn from 697mn YoY, not down a to a quarter like OP said. Gross margins are down to 22% from 35% YoY. Cash balance is down to 153mn from 509mn YoY. Which means they're probably completely out of cash by now and its gonna be a very very nerve wracking week. Either they announce bankruptcy or someone acquires them.

  19. Gross margins have dropped because they fire sold the lines of stock that they aren't carrying forward in the closing stores at a steep discount and this has been included in the numbers.

  20. but how do you explain that were down to their last 153 million in November? Won't they already be out of cash reserves?

  21. 500m of liquidity. 153m (not looking so running off the top of my head) was cash and equivalents.

  22. How early do you think they'll release the earnings report? Call at 8.15, report out at 7 or 7.30?

  23. What's the parallel here? BBBY is talking about trying everything but still having concerns about being able to continue vs Redbox saying they're repositioning and restructuring. The language is very different and the section you quoted from BBBYs presser today is quite dire.

  24. Read end of first paragraph from Redbox - similar fear of not being able to be a going concern.

  25. It's been a while since I read the company filings, but I remember this. The ATM itself isn't a poison pill. But they have the possibility to issue hundreds of millions shares from treasury(right word?) as protection from a hostile takeover "that has not been approved by the board".

  26. 150M would mean we'd almost dilute by 33%. I think it might be a backup so bankruptcy isn't possible with the injection if needed.

  27. Far more than this as the selling would drop the share price further so far more shares sold than at the current price. I expect it would mean that we would end up with 3x as many shares as before the sale started - which is why it would be defensive from a hostile takeover. Anyone who tried to grab control with a 25% stake would be diluted out unless they brought another 2x as many.

  28. Any chance that they have done something behind the scene like create a PuP account for all DRS'd holders to handle some gift/divi that will be announced shortly - and that's why there is the one week jump?

  29. I could be wrong but I think the amount tendered in the official bond numbers is also not accounting for the private 2024 debt (I think it was $69 million?) that was privately negotiated... Don't quote me on that, but that was my understanding...

  30. Yeah - when I looked at it before I had it that there was only about $180m left of 2024 - so within touching distance of the ATM clearing the decks. I assume that this means private is on top.

  31. How's it going bud? So maybe we see a run in the next few days? Already seeing CTB start to climb again

  32. Unf. I have to 100% admit that this was blown out the water. At least I can say I put my money where my mouth was :).

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