BBBY bond up 76%

I'm in this with you.

I'm buying what you're selling

Listen, get educated, and get involved.

*Lowers face into palm*

  1. It was supposed to happen in July, and August, and November, and December, and totally definetly the weekend of 7-8th of january, or atleast the week after that, or after that. They know about as much as us, it's all guessing.

  2. It is indeed odd. I mean, companies do go bankrupt, and it's normal to report on it. First a heads up, then somewhere in the days/weeks leading up to it, then when it happens, and possibly also a follow up if they got some creditor lined up or whatever. I mean, none of us are ruling this possibility out, but the articles are on parity with the biggest stocks out there, and this is basically on no news at all. There's almost nothing to report on that can be sourced.

  3. That same address is Corporation Service Company in Tallahassee, FL. if you open a corporation which does any business in Florida you will hire CSC and have the same Florida address as BBBY and Westport Homes. Why? because tht's the one everyone uses, It would be more interesting if one of them did not use the CSC address -Why not??

  4. Yeah. We got to give these things a rest. There's a logical explanation to the address, so let's not go there. Unsure though why they've decided to switch out their gift cards, but that's another matter.

  5. We're really in the endgame now. Keep in mind that for every day that the show goes on it's a higher gamble for both investors and shorters. Difference is we at least have a limited downside, 0. They don't.

  6. Stock buybacks need to be supported by strong fundamentals, not by gambling and not having any cash reserves.

  7. You shouldn't spend 80% of your cash reserves on buybacks.

  8. Exactly. I can't understand what went through their minds. Especially in a landscape that was known back then. Like invest that money in e-commerce and expand your digital presence. And save some for a rainy day.

  9. The massive short positions and synthetic shares are beginning to show. Each day it's getting closer to critical, and it only takes a few to start covering before it's a race to cover. I think some would much rather cover at $5, 6, 10 than getting margin called at 20, 30 or 50. If an actual merger is announced rather than a tender offer there's no telling what this will do.

  10. Might be covering from MM's and let others short it down again, moving risk away from themselves to shorters.

  11. Are you really sure of this? Isnt it $1M bonds on par?

  12. Early january had massive bond sales, with some days with multiple 1MM+ blocks within 30 minutes. 1MM+ means bonds on par between $1-5M. BBBY's total bond debt is about $1B. Like we've stated before, an idea to lower cost of an acquisition is to buy bonds, but if an acquirer has started talks of acquisition already it's off the table, that would be insider trading.

  13. They should have done this years ago. It was a weird subsidiary really, basically breakeven or slight loss forever, and it isn't their core business. They need to get BBBY in order, focusing on the main banner profitability and growth potential of Buy Buy Baby.

  14. Not gonna lie, reading the first part of the sentence had my heart jump... until I got to the Harmon part.

  15. It's only $24M. I'd think they'd have that cash on hand, so they want to keep playing a bit longer. The next payment is in august, so let's hope this is true.

  16. I'd say from these last few weeks it's market makers that are deep underwater. They've been printing synthetic shares that will need to be covered if there are any positive news.

  17. No one wants to make a move now. I think market makers will only move volume to stabilize price as to not have it run. They can't let it run even slightly, as fomo will run out. They can't short it much either, since there's a massive upside potential in case of positive news for BBBY. We're all holding our breath here, shorters, shareholders and bondholders.

  18. Listen. Those who've been in this have learned. No reason to browse the subreddit refreshing every second. Keep an alert on stock price, and decide if you want to be in this play or not, and just check in once a day. Don't bother reading all the articles from Yahoo and what not. Either this goes up, or it goes down. It's a gamble, likely one you'll never repeat in the future.

  19. Can we get actual confirmations, we have enough rumours as it is.

  20. Any bondholder who can reply and say if they got their coupon payment today or not?

  21. Honestly, no one knows. The default on the prepay of the overadvancement amongst other things felt to me like an actuall doomsday clock started, unless JPM has been informed of something the rest of us haven't. I think BBBY has been given a bit of leeway due to the nature of the situation.

  22. Braindead or in strict collusion with someone much more powerful than minority shareholders. Collusion is always an option, and considering the course of events (NO-ONE willing to take advantage of the option chain? Come on! Not even the richest and smartest guys like Zuckerberg, Gates or Musk?), the most probable one.

  23. I'd say it depends on what kind of company in distress you're talking about. Retail chains sadly almost never survive bankruptcies. Biggest 10 retail chain bankruptcies of 2020 only had 1 remain in any meaningful capacity.

  24. Yeah, they are unsecured, so whatever would be left IF BBBY went through a bankruptcy wouldn't be worth anything, hence that price. They'd only be useful for an acquirer really at this point.

  25. Sure, but that opens them to charges of trading on material insider information

  26. It's how many acquisition plays play out. It is true that some things are subject to legal issues. You buy a large stake in the company in hopes of acquiring it or try to impose some change. As long as you follow regular procedures, buy like everyone else and file once you cross the 5% threshold within 10 days there's really nothing illegal about it. As long as you're not the one initiating any particular event or talking to media/announe untrue things it wouldn't be a big issue. Obviously shouldn't have access to any material information that the public doesn't know about through public filings with the SEC.

  27. That hinges on the fact that of what kind of dealings they've had with BBBY, if any. Or if they completed their purchases and then contacted BBBY. But you are indeed correct that there's a fine line here.

  28. Any history of an acquirer buying the companies debt cheap before a merger? Or is that a no-no too?

  29. It's common. Best part is you do not have to disclose it either. During acquisition you often consider assets to liabilities when you're pricing the company, but if you've beforehand purchased bonds at 20% of the original debt price, that's basically the same as having paid of debt at 20% of the original borrow rate. However, it should be noted that it's also a tactic to later on have a large say if it goes into bankruptcy and how the reorganization would be carried out, and gaining equity in exchange for bonds. The issue with retail companies though is that they sit on value that is fleeting. It's not like an oil company going bankrupt or a company with patents or things like that, where the value isn't directly tied to market shares that are fleeting. So such a gamble can prove to be costly in the sense that you might end up with a less valuable company then if you bought it the pre-bankruptcy, but still severely distressed state. It all depends.

  30. So if someone was playing 4D chess and knew a lot of funds needed this company bankrupt it would be in their best interest to let the media do their thing and buy up bonds when dirt cheap before acquiring?

  31. Yeah, exactly. They've been trading at sub 35 for many many months now, and even cheaper in november, and extremly cheap in january. It is a bit illiquid now, as in very few people are selling, but back early january up until the 13th there was insane volume on the bonds. Had days with multiple $1-5M bonds on par sold in blocks. It's really the end game we're in now. Bank or bust, or hell, even break even for many I'd say.

  32. Imagine the chaos if it was announced during market hours... hedgies and fomo retail fighting for shares

  33. You'd be surprised how fast equity price moves on news. Literally even before the first press release is posted the equity will have move up massively. It'll be too late. The same goes for the opposite too.

  34. They aren’t really holding any cards to be able to negotiate on what price they sell for.

  35. Of course they do. It's not a good position, but that doesn't mean they need to give away the company for free. An acquirer stands to lose a potential deal, and might opt to pay a premium (I'm obviously not saying $30 here) to convince shareholders to sell. BBBY either present a great opportunity for future growth and revenue, or a cash furnace. But to think they don't have any cards in negotiating a deal is flat out wrong. They could try their hand at a chapter 11 and reorganize that way instead, leaving the acquirer with a lost opportunity.

  36. Ok. But 5 dollars? Double the market price? If you owned, lets say a competing chain of stores, would you buy it for more than market price?

  37. The current market price isn't based on fundamentals. It's been shorted to an insane degree, and kept low through the use of naked shorting and synthetic shares. Using your logic, anyone with capital could simply short any other company down to the doorstep of death, give them an offer to buy out the company at that current share price and you'd say that's reasonable? The fact that BBBY is in dire straits makes escaping cycle almost impossible.

  38. Keep in mind that BBBY is now again allowed to sell shares ATM since they've filed their 10Q.

  39. why should they dilute more? They need more capital than their current marketcap a M&A is needed.. Diluation at those low prices would lead in further dump which would lead to BK..

  40. I am just stating the reality, and I am very much personally invested in BBBY. Personally, I'd rather have an M&A, not a dilution, but it's a possibility for BBBY to survive if there is no acquisition happening, and the stock squeezes. Bottom line is that BBBY needs to survive, no matter what. The amount of shorting at low share price presents a massive risk to shorters, and I would love to see them get wiped out, no matter how.

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