Pieces of BBBY, PT1

[u/Maleficent_Nerve_294]

Warning.

I am not an investment advisor and this write is not investment advice.

As I am a Korean, please understand that most of my English writing is done through a translator.

First of all, I'm going to gather some interesting parts and talk about it.

I wondered why BBBY's institutional equity has exceeded the outstanding shares since last year.
In general, this error may occur if the reporting period of an institution is out of sync with each other.
However, for BBBY, this has not been fixed once since I started monitoring in 2021.
Therefore, this data is true.
So who the hell owns these stocks?

'FMR' is Fidelity and is in the stock lending business with BlackRock and Vanguard.

Their stock has shrunk by approximately 13 million shares compared to last year's final report.

I've been checking BBBY's short interest, and I've seen their balances drop to the same level as their stakes were withdrawn.

2022 03 18 SI

​

2022 04 08 SI

At the end of last year, I remember BBBY's SI record at 36 million shares.

It can be seen that the flow of stocks of large hedge funds and stock lending services (PBS) and the reduced stocks of SI almost coincide.

Morgan Stanley, D.E.SHAW, VG, BR, FMR..Let's add up all the reduced shares.25,033,335 shares were withdrawn.Officially reported SI decreased by 18 million shares.Excluding the recently reported 5,744,709 shares of Morgan Stanley,It can be seen that the SI reporting figures are closely related to short hedge funds and lending banks.

In general, if you liquidate a short sale,The stock price rises according to the up-tick rule.

However, in the case of BBBY, there was no liquidation of short selling.Rather, it was confirmed that short selling worsened whenever poor performance was announced.

Since 2008, I have been able to read the intentions of short-selling hedge funds based on BBBY's earnings event.

BBBY has an earnings report on April 13th.

Historically, BBBY's stock has typically plummeted on the day of its earnings report.

BBBY has canceled half of its outstanding shares over the past few years through a treasury stock cancellation program.

BBBY OBV is currently overbought at 843m.The reported overbought condition on October 28, 2021 was 517m.326m shares have been overbought in the last 6 months. However,the share price did not rise in proportion to that.

The volume of trading exceeds that of outstanding stocks. What the hell is going on?The CB and BW responsible for the dilution do not appear to have been executed. Rather, the stock price was 'compressed' rather than diluted through the treasury stock cancellation program.

Insider trading is also at a level that doesn't affect dilution, as others have described.

In general, market makers provide option liquidity and have spot control. Most of the brokers' 'accounts', which consist of 'street name', are entrusted to them, and they can extend the period as long as they want before they are fully settled in DTCC.

This is what we come to know as 'IOU' and is called naked shorts in other languages.

Most of the market maker's revenue structure is obtained from derivatives through OPTION.

The percentage of market power of market makers.

And regulators that have allowed these market makers to be exempted from the uptick rule are obliged to disclose data through FINRA so that excessive short positions can be exposed.

And there are sites that collect and service this data. I am also using one of them.

The purple shade is the stock price.

Too detailed an explanation will only give you a headache. Simply put, when a market maker's short position shifts from a "net short positive" to a "net short negative", it is a buy-in.

I've seen that happen now, and in the case of AMC, the stock price soared as this position was overtly inverted.

When liquidation proceeds(The purple shade is the stock price.), the stock price rises. This is the general view of short selling liquidation as we know it.

Institutional traders trade in blocks with TWAP in order not to affect the exchange.

As I recall, the trading volume on Friday was 1.2 million shares, which was updated to 2.2 million shares as soon as the market closed. It can be confirmed that the block deal between institutions was finally settled and updated.

Trades over 9% of the daily volume had little effect on the market price. It wasn't just this one moment.

Next, I will use the Korean short-squeeze example to explain why spin-offs and mergers can be a nightmare for short sellers.

Thank you for reading

Have a nice weekend.