Saturday, June 9, 2018

The Seldom-Discussed Truth: Sabby Mgmt/HC Wainright/Citron/Muddy Waters $STUDY

Below are some quick notes I had previously jotted down and I'm posting here to keep things organized and since I would really like to expand upon these thoughts and branch out from here, since for one reason or another...no one is willing/ballsy enough to call it out for what it is.

Based on the little I know about how things work legally in this game, I'd HAVE to be wrong about what I'm even suggesting about HC Wainwright and Sabby Management....but I'm not.  Why? Because they've each gotten in trouble for it before.  I'm no lawyer, but some light digging should lead you to court filings/settlements where HC Wainwright/Sabby Management have gotten busted for either taking positions long/short prior to a secondary offering, which they were not allowed to have done, and then they pay a pretty penny, get a slap on the wrist and move on..

So, why do we care? Because there's just some things that I have grown to understand are important, even though no one tells you that.  And if you were to ask them, they'd probably stumble over their words since in a case like this "seldom-discussed truth", it's just something that needs to be considered as part of your entire trading confluence.  I don't care whether I am bringing up a topic that could be argued endlessly, since all I care about is my money, and not losing it.
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OK - I hadn't planned to write this much as an intro to introductory notes, which I wrote a month ago, but I guess this kinds of gets right to the heart of what all that talk above is pointing to..... 

Some things are just better left unquestioned.  Accept it for what it is and move on... 
  1. Sabby Management taking a stake in a company is notoriously known as BEARISH amongst exprienced traders familiar with them.
  2. HC Wainwright taking a stake in a company means.....DON'T SLEEP. These guys take lots and lots of stakes in companies and they do lots and lots of secondary offerings/find ways to build value in their long-term positions in companies.  THINK TWICE about swinging a stock with ties to HC Wainwright (or any instit/fund) that ends the day up big.  As 90% of you have likely realized quite quickly realized....this is just how the cookie crumbles.  A stock closes that day up 18% for the first time in awhile, then boom what do ya know, offering announced in afterhours.  
Messed up? Yup. Illegal? No clue. Just how the game is played? YUP

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Wainwright = likes to run up, offering, dump, then long term value

Sabby = likes to hold down stocks with exploitable sentiment, tries to make it hard for traders to just play the charts and beat them, i don’t even quite understand how their obligations to complete sec filings aren’t due to them being short rather than long…it’s almost obvious the price action following hearing Sabby stakes…bearish…too dangerous…time n time again they hold the wall down hard once cat is out the bag…consensus of crowd seems to be Sabby short. Unsure if them placing their legitimate shares on the ask to appear short and accumulate more can be ruled out…

MuddyWaters and Citron on a similar level in my books…

Citron and Muddy = starts w/ generally exaggerated bear call, but their DD stands and usually will have profits locked in often — unsafe/unstable to play

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