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With Ryan Cohen inflicting a crushing blow to the gamma-squeeze-driven rally in Bed Bath & Beyond (BBBY) shares over the previous few hours, retail merchants have been ravenously trying to find their subsequent YOLO-based buying and selling goal. While quite a lot of promising candidates are at present making an attempt to take the meme inventory management mantle, an obscure clinical-stage pharma firm that’s making an attempt to sort out mind problems, MindMed (NASDAQ: MNMD), simply may emerge victorious.
As we’ve famous in a earlier put up, Bed Bath & Beyond shares have been bleeding profusely ever since RC Ventures – the fund managed by GameStop’s chairman Ryan Cohen – dumped the whole lot of its 11-percent-plus stake within the firm at a tidy revenue of $68 million. The information that BBBY has now tapped Kirkland & Ellis for its upcoming restructuring has sapped the final vestiges of euphoria from the inventory, no less than for now. Against this backdrop, MindMed (often known as Mind Medicine) may appeal to the sort of gamma-squeeze-driven positive factors that made BBBY such a profitable commerce for early entrants.
Before going additional, let’s go over important background info. Earlier this week, Financial Times revealed an attention-grabbing story about Jake Freeman – a school pupil who turned his $27 million guess on Bed Bath & Beyond into positive factors of $110 million on the again of the latest retail frenzy within the inventory. Of course, Jake’s uncle, Scott Freeman, is probably going the proverbial “man behind the marionette” on this saga. The two constituted Freeman Capital Management LLC, which then took a 6.21 p.c stake in BBBY. Interestingly, Scott Freeman has served because the Chief Medical Officer at MindMed.
This brings us to the crux of the matter. The Freemans have now constituted one other monetary entity, known as FCM MM Holdings LLC. They have additionally established a devoted web site by the identify MindMed Zone. The web site features a transient introduction of the principal characters in FCM MM Holdings.
Critically, the web site additionally accommodates a letter that has been addressed to MindMed’s administration and consists of concepts on how the drug firm may have the ability to impact a rebound from its present woes. The letter clearly states that the Freemans have gathered a stake of 5.6 p.c within the pharma firm after which, in a move paying homage to the BBBY play, goes on for instance concepts on implementing a turnaround.
Interestingly, Citadel is a significant investor in MindMed. While there’s a discrepancy between the institutional holdings’ tabulation by CNN and Nasdaq, it’s an uncontested indisputable fact that Citadel is at present one of many largest institutional buyers within the pharma firm. Bear in thoughts that Citadel additionally had a significant presence in BBBY inventory. Of course, we must always embrace the caveat right here that this prevalence may simply be a coincidence and, consequently, we won’t learn an excessive amount of into this happenstance for now.
⚠️ 𝘚𝘮𝘢𝘭𝘭 𝘊𝘢𝘱𝘴 𝘖𝘯𝘭𝘺:
1. $BBBY 🥇
2. $MNMD 🥈
3. $FAZE 🥉
Source: https://t.co/cWJOwWSb0I#fintwit #wallstreetbets #shares
( Sorted by final 2 hours ) pic.twitter.com/ytFQcHdZ6K
— FINAP$E ⚡ (@fintwit_synapse) August 19, 2022
MindMed shares had been up 36 p.c yesterday. In right now’s pre-market buying and selling, the inventory is up one other 8 p.c or so on the time of writing. Even so, at barely above a greenback, the inventory stays a quintessential small-cap play. However, the hype across the inventory continues to construct, as illustrated by the tweet above, and is main small cap shares for now.
Do you suppose MindMed inventory is about to turn into the following Bed Bath & Beyond play? Let us know your ideas within the feedback part under.