/biz/ - Business & Finance

>>56060362
>8. Ryan Cohen writes the letter to BBBY's board after buying a large stake in the company.
>9. Ryan Cohen sells his stake to an unknown party, not on the market.
>10. BBBY is shorted to oblivion and is theorized to be many times over the outstanding share count short, the company even walks shorts into a trap by providing dilution rumors in the form of warrants and class a convertible shares (all which never hit the market).
>11. BBBY undergoes chapter 11 proceedings, in doing so it is revealed the value of the company in NOLs (several billions in tax breaks for a potential startup).
>12. IP is sold to Overstock, a company who has battled naked shorts before in the legal world.
>13. Legal language similar to m&a activity begins to appear in the Ch 11 bankruptcy dockets.
>14. Teddy, Ryan Cohen's company, is a financial instrument with trademarks for baby goods as well as bed and bath retail goods.
>15. GameStop releases a quarterly document with 10x the normal instances of m&a disclosures/information.
A merger or acquisition for stock to stock deal forces all shares to be accounted for, tallied, and distributed to their respective parties. This type of deal can be used to counter naked shorting, as it forces all shares to be located and assigned to their respective owners, not held in street name. Shares being held in street name is why there are able to be more shares sold short than the entire share count outstanding, if all shares are held in shareholders names directly this would not be possible.

Going to pop along with GME.