Ryan Cohen or an affiliate will be involved with the Wednesday Morning, 8/31 announcement, whether its a spinoff, M&A, or some other scenario such as a partial sale of Buy Buy Baby.
Now today I’ll be doing a deep dive into why I think this is the most likely scenario. Apologies if I didn’t give anyone credit where credit was due. Anyway, this will be a longish post, but buckle up and read if you want ultimate confirmation of your BBBY yolo. I am not perfect, but this is my best effort as a fellow degenerate. Yet, I still believe this to be among the most logically sound, and comprehensive theory/dd on BBBY and Ryan Cohen. I expect many comments saying not to expect anything big from the announcement, that Ryan Cohen hates me, yada yada, or that the hopium is strong. Fuck all the noise. We’re gonna be fucking rich.
First, lets look at the Timeline of events, and note that Ryan Cohen was an insider when he sold his shares: https://old.reddit.com/r/wallstreetbets/comments/wtju81/ryan_cohen_was_an_insider_when_selling_his_shares/
3/3: Ryan Cohen completes his purchase of his BBBY stake.
3/6: RC sends his letter to the BBBY board. If you haven’t read it, you should. He’s super bullish in Buy Buy Baby. Source: https://s.wsj.net/public/resources/documents/bbbletter030622.pdf
3/24: RC and the BBBY board reach a cooperation agreement. RC appoints 3 board members, 2 of which would serve on the strategy committee to explore options for Buy Buy Baby.
4/22: It is reported that there are offers on the table for Buy Buy Baby. Source: https://www.wsj.com/articles/bed-bath-beyond-s-buybuy-baby-draws-buyer-interest-11650655897
6/29: Executive leadership change, Mark Tritton replaced by Sue Gove. Source: https://bedbathandbeyond.gcs-web.com/news-releases/news-release-details/bed-bath-beyond-inc-announces-executive-leadership-changes
7/14 BBBY annual shareholder meeting, board acknowledges the interest and value in Buy Buy Baby, and promises an update on the company by the end of August. Source: https://central.virtualshareholdermeeting.com/vsm/web?pvskey=BBBY2022
8/16: Ryan Cohen files form 144, and sells out of his position entirely by 8/17
8/18: BBBY releases 8k, stating that they had reached a constructive agreement with RC in march. They also state they want to go back to their “heritage as the best destination for the home.” Sounds familiar. Like the Ultimate destination for gamers, or the ultimate destination for pets.
8/25: BBBY announces that they will be holding a conference call to provide a strategic and business update, while also releasing press material beforehand, all to be done 8/31 in the AM. Source: https://bedbathandbeyond.gcs-web.com/news-releases/news-release-details/bed-bath-beyond-inc-provide-strategic-update-august-31-2022
#My take on the timeline
Up to this point, BBBY’s board seemed to have been on board with Ryan Cohen and his ideas. They reached a cooperation agreement and 3 of his board members were appointed. Oh also, did I mention? His board members ALL HAVE SOME SORT OF EXPERIENCE PERTAINING TO TRANSACTIONS, OR MERGERS AND ACQUISITIONS. Source: https://bedbathandbeyond.gcs-web.com/corporate-governance/board-of-directors
In addition to RC’s new board members, the board ousted CEO Mark Tritton, and instead appointed the then head of the buy buy baby strategy committee, Sue Gove. In other words, this is EXACTLY what Cohen would have wanted. He hated the guy. See his letter, and also his tweets about hating failed executives… https://twitter.com/ryancohen/status/1542160137401630720 literally tweeted the same day it was announced that Tritton was ousted.
Not to mention… If you read into the announcement, it’s hard to just believe it’ll be about a measly 400 million dollar loan. Here’s some analysis on that.
So why in the hell did Ryan Cohen sell? Was it really to make a quick buck? To screw over his retail investor fan base? That same fanbase that drove his gamestop stake to 10x its value? Before we get into the real reason why I think Ryan Cohen sold, lets take a look at his past
#Who is Ryan Cohen?
Really, all you have to know is that he isn’t another Adam Aron. He isn’t buds with Cramer. Fuck Cramer. Anyway, as you all know RC built up chewy, and he initially took up the challenge because he was unsatisfied with his experience as a pet owner. You know what else RC had recently? A baby. https://mobile.twitter.com/ryancohen/status/1420940035042414595
And you know where people get highchairs like the one RC has? Buy Buy Baby. Credit u/halfconceals. [Link to chair in question](https://www.buybuybaby.com/store/product/peg-perego-siesta-high-chair/5161867?skuId=40156248&store=3033&enginename=google&mcid=PS_googlepla_nonbrand_brand_local&product_id=40156248&adtype=pla&product_channel=local&adpos=&creative=237535384067&device=m&matchtype=&network=g&gbraid=0AAAAADLRKDxd_Ml5zHARXK7BeKIougyLT&gbraid=0AAAAADLRKDxd_Ml5zHARXK7BeKIougyLT&gclid=EAIaIQobChMI9_bDk6_Y-QIVxmxvBB0ILwNUEAQYAyABEgI00vD_BwE&gclsrc=aw.ds&pickup=true&wmSkipPwa=1):
Also, just read the article he wrote on May 4th, 2020, before any of the GME craziness took place if you want to know where his values lie. Some highlights:
* (About his father) “If he were here today, he’d be worried about the millions of unemployed and struggling businesses across the country. The warehouse workers, drivers, construction workers and small-business owners — those are the people he respected most.”
* “Be the person others want to follow”
* “My father was never looking to make a quick buck.”
* “Above all, he taught me that the best decisions come from heart, instincts and empathy. Dad, I will forever be grateful.”
Incoming comments about how he pulled the rug from me anyway, and about how I’m a naive sucker for believing he didn’t screw me over. Perhaps I am. But maybe I’m right. As Mr. Balls of Iron himself once said,
*Dude everyone thinks I’m crazy, and I think everyone else is crazy. I’ve dealt in deep value stocks for years but have never endured bearish sentiment this heavy. I expect the narrative to shift in the second half of the year when investors start looking for ways to play the console refresh and they begin to see what I see. I’ll post the update tomorrow as I always do after data readouts. It will be ugly, and everyone will mock me as usual, but I expect GME to bounce back just as it did after the previous earnings readouts.*
#So Why Did Ryan Cohen Sell?
The question on everyone’s minds. It’s quite simple really, especially with bankruptcy pretty much confirmed to be out of the picture.
He sold to avoid litigation with conflict of interest.
In short, there is precedent of bringing litigation against individuals who were in Ryan Cohen’s shoes, specifically in instances of M&A’s. You can read my more in depth DD on this here. My post also goes into how the standstill agreement may have been circumvented: https://old.reddit.com/r/BBBY/comments/wv6i5e/ryan_cohen_sold_his_shares_to_avoid_a_conflict_of/
Here’s the short version tho: If RC was an stakeholder in one company, and acquired another company that he was a stakeholder in for a premium, this would open him up to litigation on the basis of conflict of interest. And what about the standstill agreement? Yea what about it? The agreement prohibited RC from giving an offer, but did not prevent him from receiving an offer.
Here is another take on why an M&A by RC is feasible, which goes much more in depth than I could: https://www.reddit.com/r/BBBY/comments/wy33eg/the_bullish_sell_and_cryptic_tweets_merger/
#But does is actually make sense???
Look, we can go into the legality of things, sec filings, facts, other documents, articles, and other things all day long. But I think the human condition is something we should not overlook. Here a user goes into why the BBBY board executing on RC’s demand is bullish, and leads me to further believe that an M&A is iminent: https://old.reddit.com/r/BBBY/comments/wyinm2/rc_sold_to_delay_the_short_squeezeit_all_makes/ilx18fw/
His/her TLDR in case u dont wanna link hop: *Ergo the board liked him. Ergo he didn’t just rage quit the board because they disagreed. Ergo, there’s a good chance they agreed about his BABY ideas.*
Then I’d like to say… Mergers and Acquisitions are incredibly complicated. That’s why they hire these huge and prestigious law firms to do this… like Kirkland & Ellis. The same K&E that was named the M&A law firm of the year: https://mobile.twitter.com/Kirkland_Ellis/status/1560318431529816064
The same law firm that is advising BBBY: https://www.retaildive.com/news/bed-bath-beyond-hires-kirkland-ellis-debt-help/630084/
But Hobbitlord, why would BBBY be the one making the announcement about a potential M&A? Isn’t is usually the acquiring company that makes the announcement?
Good question. Like I said M&A’s can be incredibly complex and difficult to navigate, and so looking at certain specific M&A’s can give us all the confirmation bias we need. See, redditor here: https://old.reddit.com/r/BBBY/comments/wy8gjk/morning_announcement_usually_good_news_probably/ilvimsx/
What he explains may be exactly what BBBY’s situation is… just to remind you again, BBBY secured a 400 million dollar loan, likely enough to have enough cash on hand to complete any acquisition and business through the end of the acquisition. Whoa. Unconfirmed testimony, but if true, BULLISH.
Also… it’s important to mention that unlike the 400 million dollar loan, of course there’s no leaks on any potential M&A. It’s a MUCH bigger deal if something like the sale of Buy Buy Baby were to be leaked. Look at how a leak jeopardized the Apple/Beats deal. https://9to5mac.com/2022/05/04/leaked-dr-dre-video-in-2014-almost-put-the-deal-between-apple-and-beats-in-jeopardy/
Buy Buy Baby, if sold at a valuation of multiple billions as stated in Ryan Cohen’s letter… could seriously skyrocket BBBY. As of Friday close, BBBY had a market cap of around 880 million. If Buy Buy Baby is sold for 3 billion, the stock price could rise to the realm of $30 based on the cash infusion alone. This is not to mention the roughly 30 million shares sold short, on a stock with less than 80 million shares outstanding, and over 80% institutional ownership.
There’s also other theories worth looking into, including those about regsho and the explosive implications that might come with it. I know I’ve missed some things, but how can your tits not be jacked at this point.
This stock is undoubtedly your largest shot at hitting a 10 bagger, if not more. Look at the other meme stocks. For christ sakes, AMC hit like a 50 billion dollar market cap in its squeeze run, and that was WITHOUT an actual catalyst. BBBY is still under a billion dollar market cap, and has the most legit possible moon catalyst I’ve seen in awhile. The squeeze has not squoze. We didn’t even hit the stocks damn 1 year high in the recent run up. That was just a taste.
#Additional Twitter Speculation
* Ryan Cohen tweets defending BBBY on August 12th: https://mobile.twitter.com/ryancohen/status/1558101541453795329
* Ryan Cohen tweets a purple heart:
Gamestop iconic color = red, BBBY’s iconic color = blue, red and blue = purple.
* Ryan Cohen tweets a picture of an ultrasound of a baby 20 weeks in. https://mobile.twitter.com/ryancohen/status/1510818828695052289 August 31st marks 21 weeks and 3 days from the date of the tweet. Thus, if we assume the 31st is the Baby birth/announcement, that puts the time in the womb at 41 weeks and 3 days. A pregnancy isn’t considered post term till 42 weeks.
* Larry Cheng Tweet. Says actual good news comes ON TIME. https://twitter.com/larryvc/status/1542944110037925888?cxt=HHwWgIC8scjf0ekqAAAA
#Additional DD from various users
Note, this is extra DD for Redditors to explore, but I have not personally vetted them myself.
The dragonfly connection: https://www.reddit.com/r/BBBY/comments/wtfwyp/potential_bbby_endgame_a_wombo_combo_of_dragonfly/
More on dragonfly: https://www.reddit.com/r/BBBY/comments/wud5w4/dragonfly_group_will_purchase_buy_buy_baby_and/
Analysis on board members and their holdings:
TLDR; MOON ON WEDNESDAY. THIS IS NOT A DRILL. BUCKLE UP
Positions, because I put my money where my mouth is: https://imgur.com/a/mvQPXpB
Oh yea also, if this thing hits $80 like I think it will at the very least after the announcement, I will get an embarrassing ass tattoo.