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Post by mnholdem on Apr 9, 2018 17:41:16 GMT -5
With all the damage investors' stock accounts have been enduring for the past several years, maybe Scabby investors is a better term for MNKD shareholders.
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Post by traderdennis on Apr 9, 2018 20:03:59 GMT -5
SEC 13G - Amount beneficially owned: Sabby Healthcare Master Fund, Ltd. - 4,051,908 Sabby Volatility Warrant Master Fund, Ltd. - 3,750,000 Sabby Management, LLC - 7,801,908 Hal Mintz - 7,801,908 Sabby Management is an activist investment firm based in New Jersey which was founded by reputable investor Hal Mintz. The hedge fund primarily invests in small-cap healthcare companies, with the healthcare sector constituting slightly more than 57% of the fund’s public equity portfolio as of March 31. According to its latest filing, Sabby Management manages a public equity portfolio worth $2.40 billion and also invests small amounts of capital in financial and technology stocks, among others. Mintz’s oversees the management of several funds under the Sabby Management umbrella including the Sabby Healthcare Volatility Master Fund and the Sabby Volatility Warrant Master Fund. (The following from same article is apparently Insider Monkey Small-Cap Strategy)...We don’t just track the latest moves of hedge funds. We are, in fact, more interested in their 13F filings, which we use to determine the top 15 small-cap stocks held by the funds we track. We gather and share this information based on 16 years of research which showed that these 15 most popular small-cap picks have a great potential to outperform the market, beating the S&P 500 Total Return Index by nearly one percentage point per month in back tests, and easily beating the most popular large-cap picks of funds, which nonetheless get the majority of their collective capital. Why pay fees to invest in both the best and worst ideas of a particular hedge fund when you can simply mimic only the very best ideas of the best fund managers on your own? Since the beginning of forward testing in August 2012, the Insider Monkey small-cap strategy has outperformed the market every year, returning 142%, nearly 2.5 times greater returns than the S&P 500 during the same period (see more details). Since 13G's are activated by holding either shares of stock, or warrants in the company, I wonder what the breakdown is. It could be possible Sabby sold short 3.9 million to 7.8 million shares prior to the offering and just kept the warrants. www.sec.gov/news/pressrelease/2015-239.htmlit would not be the first time they were caught selling short prior to an offering.
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Post by akemp3000 on Apr 9, 2018 21:11:56 GMT -5
Just curious...who should be the preferred owner of shares in MNKD; Deerfield or Sabby? One thing we all know is that Wall Street and its many wolves are at a minimum morally corrupt and probably legally corrupt as compared to the retail investor. That said, we all get to play the game knowing this risk. Small biotechs in particular are not for the faint at heart. I'm long MNKD because of the thus far irrefutable superior science that IMO (and apparently Dr. David Kendall's) will prevail regardless of the wolves. I'm pleased with Mike's plan which seems to be on track. I want to see progress soon with scripts, partnerships and a great ADA presentation. In the mean time, I'm loading up and won't get lost in the weeds worrying about who's shorting, which analyst missed a call by a few months or why the company issued a relatively small amount of stock to raise needed funds. GLTA
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Post by agedhippie on Apr 9, 2018 21:40:20 GMT -5
SEC 13G - Amount beneficially owned: Sabby Healthcare Master Fund, Ltd. - 4,051,908 Sabby Volatility Warrant Master Fund, Ltd. - 3,750,000 Sabby Management, LLC - 7,801,908 Hal Mintz - 7,801,908 Since 13G's are activated by holding either shares of stock, or warrants in the company, I wonder what the breakdown is. It could be possible Sabby sold short 3.9 million to 7.8 million shares prior to the offering and just kept the warrants. www.sec.gov/news/pressrelease/2015-239.htmlit would not be the first time they were caught selling short prior to an offering. Previously they had a straddle open but they have sold the Call half and only the Put side (which is very profitable) remains. I suspect that since warrants behave like Calls they have replaced the Calls with warrants which they got from splitting the placement units - selling the stock and keeping the warrants. That would give them the Call leg for free, plus they make money off selling the stock short. Given the characteristics of the warrants Sabby need to hold the position for at least six months, and less than a year. So they are looking to exit this position in that time range. It's hard to tell what that means but at a wild guess from the value of the Puts I think they have built a position that is a $2.00 to $2.50 Call, and a $4.00 to $5.00 Put. They have a position that it is almost impossible to lose money on if I am right.
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Post by agedhippie on Apr 9, 2018 21:44:00 GMT -5
Just curious...who should be the preferred owner of shares in MNKD; Deerfield or Sabby? ... They are equally bad. Neither party is an investor.
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Post by digger on Apr 9, 2018 21:53:24 GMT -5
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Post by brotherm1 on Apr 10, 2018 3:47:18 GMT -5
Since 13G's are activated by holding either shares of stock, or warrants in the company, I wonder what the breakdown is. It could be possible Sabby sold short 3.9 million to 7.8 million shares prior to the offering and just kept the warrants. www.sec.gov/news/pressrelease/2015-239.htmlit would not be the first time they were caught selling short prior to an offering. Previously they had a straddle open but they have sold the Call half and only the Put side (which is very profitable) remains. I suspect that since warrants behave like Calls they have replaced the Calls with warrants which they got from splitting the placement units - selling the stock and keeping the warrants. That would give them the Call leg for free, plus they make money off selling the stock short. Given the characteristics of the warrants Sabby need to hold the position for at least six months, and less than a year. So they are looking to exit this position in that time range. It's hard to tell what that means but at a wild guess from the value of the Puts I think they have built a position that is a $2.00 to $2.50 Call, and a $4.00 to $5.00 Put. They have a position that it is almost impossible to lose money on if I am right. Where in the heck did you find Sabby’s MNKD straddle/put/call documentation?
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Post by matt on Apr 10, 2018 8:23:53 GMT -5
Given the characteristics of the warrants Sabby need to hold the position for at least six months, and less than a year. So they are looking to exit this position in that time range. It's hard to tell what that means but at a wild guess from the value of the Puts I think they have built a position that is a $2.00 to $2.50 Call, and a $4.00 to $5.00 Put. They have a position that it is almost impossible to lose money on if I am right. The other possibility is that they really have no plans for the warrants. This latest stock offering was near the limit of what the company could do under the NASDAQ 20% rule, and if the warrants had been included it would have exceeded the 20% rules. However, NASDAQ has ruled that if the warrants are priced at par with the last price before the date of the transaction (i.e. not at a discount) and if the warrants are not exercisable for 6 months, then the offerings will not be integrated. The integration rules are a bitch to understand and I will not even try to explain them, but essentially NASDAQ has elected to look at the share offering as one transaction and the warrants as another transaction. Since the 20% rule applies to each transaction individually, MNKD could sell the full 20% of shares at a discount without the warrants being counted against the total. If the warrants had been exercisable immediately the 20% limit would have been applied to the shares plus the warrants.
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Post by agedhippie on Apr 10, 2018 8:34:23 GMT -5
Previously they had a straddle open but they have sold the Call half and only the Put side (which is very profitable) remains. I suspect that since warrants behave like Calls they have replaced the Calls with warrants which they got from splitting the placement units - selling the stock and keeping the warrants. That would give them the Call leg for free, plus they make money off selling the stock short. Given the characteristics of the warrants Sabby need to hold the position for at least six months, and less than a year. So they are looking to exit this position in that time range. It's hard to tell what that means but at a wild guess from the value of the Puts I think they have built a position that is a $2.00 to $2.50 Call, and a $4.00 to $5.00 Put. They have a position that it is almost impossible to lose money on if I am right. Where in the heck did you find Sabby’s MNKD straddle/put/call documentation? Edgar, it took a bit of digging. The straddle is supposition from the fact that they had a position with the same number of Calls and Puts which makes it probable.
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Post by cjm18 on Apr 10, 2018 8:55:24 GMT -5
14m new shares from the capital raise divided by the 126m outstanding shares. That’s only 11%.
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Post by sportsrancho on Apr 10, 2018 8:58:30 GMT -5
The straddle ....Which link is that?
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Post by agedhippie on Apr 10, 2018 9:04:10 GMT -5
The straddle ....Which link is that? There is no link. If you look through their filings you will find a position with an equal number of Puts and Calls which is usually a straddle, hence as I said supposition but I think with a high probability.
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Post by kc on Apr 10, 2018 9:06:37 GMT -5
You can view on Fintel IO. View what Sabby hold. fintel.io/so/us/mnkdInformation is dated but still helpful
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Post by sportsrancho on Apr 10, 2018 9:09:11 GMT -5
You can view on Fintel IO. View what Sabby hold. fintel.io/so/us/mnkdInformation is dated but still helpful Thanks kc:-)
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Post by brotherm1 on Apr 11, 2018 22:59:47 GMT -5
Where in the heck did you find Sabby’s MNKD straddle/put/call documentation? Edgar, it took a bit of digging. The straddle is supposition from the fact that they had a position with the same number of Calls and Puts which makes it probable. Aged, So Edgar lists options held by institutions? Would we search under MNKD or Sabby or something else to find them? This is all new to me that Edgar lists these. Do they have to be reported to the SEC only if at strike price if they would represent 5% or greater of the shares outstanding? Signed, Befuddled
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