Dark Side of the Street (Edition #49)
$BBBY Thoughts - Is it DEAD, $MSGE Spinoff, Special Sit Updates, Top Movers and More!
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“A bankruptcy judge can fix your balance sheet, but he cannot fix your company.”
Gordon Bethune
Thought of the Week
Can Bed Bath and Beyond (NASDAQ: BBBY) recover? Or shall we deem it DEAD?
This stock seems interesting to me because it’s a company that has seemed dead for many years but continues to fight to stay alive. Anecdotally, literally, every time that I go to one of their stores, no one is there. Plus, the store never has what I’m looking to buy. (Really not a good sign for a retailer). So based on that story, my opinion was that they’ve been dead for like 5 years.
But the end of BBBY appears closer than ever, with reports stating that the company defaulted on their JP Morgan loan and needs to find another financier, or they will be forced into bankruptcy.
To answer my initial question based on 5 minutes of research and many years of being an unsatisfied customer… I deem BBBY DEAD. But I’m very interested in following the story and seeing if the company can wiggle its way out of this horrible situation.
New Special Situation to Watch
Madison Square Garden Entertainment (NYSE: MSGE) - Spinoff
MSGE announced that the company is planning to spin off its live entertainment business. As of today, a Form 10 has been confidentially submitted to the SEC and should be available to the public soon. The spin-off is expected to be finalized in March of 2023. Current shareholders of MSGE will receive shares of the new company in line with 67% economic interest, while 33% will be retained by the parent company.
The business that is being spun off is MSG’s live entertainment business. This includes their venues in New York and Chicago and their sports bookings business.
Recent Insider Buying
Large Micro Cap Purchases
Top News of the Week
“Where Are Stocks, Bonds and Crypto Headed Next? Five Investors Look Into Crystal Ball” - By Caitlin McCabe, Gunjan Banerji, and Justin Baer of WSJ
“Bed Bath & Beyond to Close 87 More Stores, Harmon Chain as Restructuring Options Narrow” - By Soma Biswas, Alexander Gladstone, Kate King, and Jodi Xu Klein of WSJ
Top Micro Cap Movers this Week
Top 10 Gainers
Top 10 Losers
Special Situation Watchlist
Activision Blizzard (NASDAQ: ATVI) - Risk Arbitrage
The spread between the buyout price ($95/share) and ATVI’s current trading price is now ~24%.
No news updates.
AMMO, Inc. (NASDAQ: POWW) - Spinoff
News Updates: “Skylands Capital LLC Purchases 77,993 Shares of AMMO, Inc. (NASDAQ:POWW)” - MarketBeat
111, Inc. (NASDAQ: YI) - Going Private Transaction
The non-binding offer has been upgraded from $3.61 to $3.66/share (see link for SEC filing)
The spread between the offer price and the current stock price is 18%
No new updates.
World Wrestling Entertainment, Inc (NYSE: WWE) - Potential Sale
Current stock price: $84.63/share.
News Articles:
No News updates
Albertsons Companies, Inc (NYSE: ACI) - Merger Arbitrage
The spread between the buyout price ($27.25/share) and the current trading price is now ~29%.
News: no updates
*See links for the situation summary from prior editions
A solid vibe with a Biggie sample… I’m in. Here’s the song of the week.
See you next week!
- Dark Side of the Street