First of all, you're probably asking who the hell is Sabby Management LLC and why should I be concerned? Well, I was the same way for a while (because I own both stocks) until I did my due diligence and some research.
I'm not really good yet with advanced stock lingo so please bear me if what I'm about to say sounds confusing.
Using fintel.io (which is a really neat website to find out institutional owners of your stock and how they're trading – think Vanguard, Swab Charles, Morgan Stanley, etc.), I was looking up each and every one of the stocks that I own and for about 1/3 of all that I own, I found one of the common threads to be Sabby Management. Among the rest of the big players, the word Sabby isn't really instantly recognizable like the others I mentioned above.
Sabby Management owns 7.29% of ATNM and 9.94% of SHIP.
Sabby Management doesn't even have a trace of a website.
An article that was published on March 25th, 2020 from UtopiaCap (I've personally never heard of them but the article seemed to be one of the first to pop up when I searched for Sabby Management on Google).
To give you a quick summary, they say that 73 out of the 75 companies that Savvy Managment LLC invested in within the past two years or so have a 33.45% average annualized rate of return.
Sabby was also named as a defendant in a SEC administrative proceeding resulting in a cease and desist order.
The following is taken from the article on UtopiaCap: "This came as a result of Sabby Management violating Rule 105 of Regulation M of the Exchange Act, a rule that “prohibits buying an equity security made available through a public offering, conducted on a firm commitment basis, from an underwriter or broker or dealer participating in the offering after having sold short the same security during the restricted period as defined therein”. The SEC stated that “On two occasions between December 2014 and February 2015, Sabby bought offering shares from an underwriter or broker or dealer participating in a follow-on public offering after having sold short the same security during the Rule 105 restricted period. The violations resulted inprofits of $184,747.10” (2). Sabby Management settled the matter by agreeing to pay disgorgement of $184,747.10, prejudgment interest of $2,331.51, and a penalty of $91,669.95 (3). Our previous investor warning highlighted how Hudson Bay Capital settled with the SEC for violating this very same rule."
I feel proud of myself for digging and finding all of this out but this all turns into one big question – why isn't ATNM or SHIP doing anything about this?