$Bed Bath & Beyond (BBBYQ.US)$ 🙏🙏🙏 The billion-dollar ass...

The billion-dollar asset in $BBBYQ’s NOL’s may be the key to a successful acquisition and ultimately, delivering shareholder value to existing investors.

No-one can buy or sell the stock right now; this research is being presented to the loyal investors of $BBBYQ who have laughed at mainstream media and shills attempts to dissuade our unwavering conviction.

Net Operating Losses (NOLs) can be valuable assets in an acquisition as they can provide tax benefits to the acquiring company. NOLs typically occur when a company's tax deductions exceed its taxable income in a given tax year.

Current value of the NOLs is on Docket 1692 page 74 (thanks @sboho)

“As of the end of the 2022 fiscal year, the Debtors had approximately $1.6 billion of U.S. federal net operating losses (the “NOLs”)”

Bearing in mind, this ONLY from the 2022 fiscal year ranging from October 1, 2021 - September 30, 2022.

The company has incurred further losses from September 2022 to entering Chapter 11 in loss of sales and share conversion warrants. This would add more capital to the $1.6bn value of the NOLs.

Poor capital allocation and mismanagement have been the downfall of Bed Bath & Beyond, thanks to the overpaid executive Mark Tritton.

“Bed Bath & Beyond revealed its turnaround strategy in late 2020, it also announced plans to buy back $675 million of stock. That included an immediate $225 million accelerated share repurchase (ASR) program and additional buybacks of up to $450 million between fiscal 2021 and fiscal 2023.”

Source: therobinreport.com/the-share-buyb…

This poor use of $1bn cash on hand has directly contributed to the position of the company currently, however I believe the share repurchases will be added to the value of the NOLs taking it to past $2.6bn.

Alvarez & Marsal, counsel to the Unsecured Creditors Committee (UCC) have been providing auditing and accounting services throughout July & August relating to the share repurchase programs, this leads me to believe they will utilise the additional wasted capital and absorb it into the final value of the NOLs.

So how do these NOLs protect shareholders?

“IRC Section 382(l)(5) provides an exception to the general rule if the following conditions are met:

Immediately before the ownership change, the loss corporation is under the jurisdiction of the court in a title 11 or similar case;

The corporation’s shareholders and “qualified creditors” (determined immediately before the ownership change) own at least 50% of the stock’s value and voting power immediately following the ownership change.”

Source: marcumllp.com/insights/prese…

$BBBYQ has met these requirements by being in Chapter 11 and therefore at least 50% of the stock value must be retained by the acquirer, therefore protecting shareholder equity and ultimately the short positions attached to the equity.

Utilizing NOLs in an acquisition isn’t a new concept, in fact Warren Buffet used them to acquire Berkshire Hathaway in 1965;

“For a time I got lucky: Berkshire immediately enjoyed two years of good operating conditions. Better yet, its earnings in those years were free of income tax because it possessed a large loss carry-forward that had arisen from the disastrous results in earlier years.”

genius.com/Warren-buffett…

Didn’t Ryan Cohen call himself Warren Icahn by night and challenge Warrant Buffet to a thumb war?

It’s not a coincidence also that Ryan Cohen has hired an interim PFO who is an experienced tax specialist instead of a broader range experienced CFO after Diana Saadeh-jajeh resigned in July 2023.

linkedin.com/in/dan2313/

Why would Ryan Cohen need such a tax specialist experience at this stage? Could he be planning an acquisition?

It’s also not a coincidence that stepping back to see the big bigger picture at play here, $BBBYQ have streamlined debt from $5bn to ~$1.5bn within 189 days of entering Chapter 11. Strategically paying creditors like JPMorgan off in full 3 years before maturity date to free their liens from the Asset Backed Loan (ABL)

This Chapter 11 has been a masterclass in restructuring and turnarounds, a future case study for economic classes. Within weeks we will get confirmation if shareholder equity will be preserved and the inevitable squeeze will happen as short sellers have been piling into the stock since August 2022 and have been doubling down, foaming at the mouth in greed since entered Chapter 11.🙏🙏🙏