NNVC -- You Knew That Was Going to Spike Again
Updated
That shaded box, starting from January.19th, was most likely somebody accumulating..
But it looks like the usual suspects, that being:
Sabby Management
Altrium Capital
Empery Asset Management
CVI Investments
all somehow managed to miss out on this one at the exact same time, because according to the their end of year 13-G reports, they all reported 0% ownership in the company...
At times, it seems like the line between hedge fund and underwriter has become blurred with these companies, where it almost looks like they are cooperating with the underwriter during the equity offering process -- but who knows..
Something about this was mentioned in an sec litigation a few years back.
“The SEC alleges that a former day trader living in California, Steven Fishoff, schemed with two friends and his brother-in-law to pose as legitimate portfolio managers and induce investment bankers to bring them “over the wall” and share confidential information about an upcoming secondary offering. After promising they wouldn’t disclose the nonpublic information to others or trade an issuer’s stock before an offering was announced, they violated the agreements and tipped each other about the upcoming offerings expected to inherently depress the price of the issuer’s stock. The tippees then shorted the stock before an offering was publicly announced and assured themselves profits on the short sales after the stock price dropped”.
But it looks like the usual suspects, that being:
Sabby Management
Altrium Capital
Empery Asset Management
CVI Investments
all somehow managed to miss out on this one at the exact same time, because according to the their end of year 13-G reports, they all reported 0% ownership in the company...
At times, it seems like the line between hedge fund and underwriter has become blurred with these companies, where it almost looks like they are cooperating with the underwriter during the equity offering process -- but who knows..
Something about this was mentioned in an sec litigation a few years back.
“The SEC alleges that a former day trader living in California, Steven Fishoff, schemed with two friends and his brother-in-law to pose as legitimate portfolio managers and induce investment bankers to bring them “over the wall” and share confidential information about an upcoming secondary offering. After promising they wouldn’t disclose the nonpublic information to others or trade an issuer’s stock before an offering was announced, they violated the agreements and tipped each other about the upcoming offerings expected to inherently depress the price of the issuer’s stock. The tippees then shorted the stock before an offering was publicly announced and assured themselves profits on the short sales after the stock price dropped”.
Note
Just to add to that quote, what's important isn't so much the story, but that they say in the press release that if you’re a "legitimate portfolio manager--which I'm guessing means "Qualified Institutional Investor"--the legal term used by the sec in the context of 13-G filings--you are allowed to know about secondary offerings--or follow-on offerings--before everybody else. So it makes you wonder: are these small cap hedge funds-- Sabby Management, Altrium Capital, Empery Asset Management and CVI Investments, et al—just as guilty as those tippee’s mentioned in that press release? They're brought "over-the-wall", so technically it would be a lot easier for them to get away with it..
There's also ample evidence of it happening in this past (google "rule 105 short selling"), so who knows, maybe it is still happening today..
Or even better, maybe it's just moved somewhere else..
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