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Posted 3 months, 3 days ago.

Why I Just Shorted Eden Bioscience Corp (EDEN): TheStreet.com’s Factually Inaccurate Pump And Dump!

Tags: ANALysts, CNBC, Criminals, Financial Media Circus, Manipulation, Patterns To Short, Scandals, Short Selling, Story Stocks, TIM Lessons, idiots

As I mentioned in this post, this near 100% runup is entirely due to THIS laughable Thestreet.com article mentioning this failure of a company as a “below-the-radar company that produces Messenger, a highly effective and revolutionary agricultural product.”

I could easily rip the company apart for its $23,000 in revenue in their latest quarter down from $189,000 just a few quarters ago—wow, their product must be really great! Even funnier is their yearly results—revenue of $350k vs. $4 million a few years back. Or before this miraculous article, EDEN was a $3 million company that was forced to do a 1-3 reverse split just two months ago in order to stay listed on the Nasdaq

But I shorted 1,000 shares at $2.55–that’s all I could find, trust me, I wish I could borrow 50k–because I prefer to go to the heart of the matter, the fact that EDEN SOLD OFF THIS “REVOLUTIONARY” TECHNOLOGY AS IS DETAILED IN THEIR ANNUAL REPORT!

From that beautiful annual report, filed on March 28, 2008:

“On February 28, 2007, under the terms of the Asset Purchase Agreement, we sold our Harpin Protein Technology to PHC for $1,396,824 in cash, net of transaction costs incurred after January 1, 2007 totaling $103,176, a promissory note in the principal amount of $700,751 payable on December 31, 2007 and the assumption by PHC of certain of the liabilities relating to or arising out of our Harpin Protein Technology…”

That’s right, EDEN isn’t even in the home and garden business anymore, they’re just a licensee! Gotta quote some more of this fine work of literature:

“Harpin Protein Technology includes substantially all of our assets used in the creation of plant health technology incorporating harpin proteins and the manufacture of biopesticide, plant health and nutrient products utilizing the Harpin Protein Technology. These assets include all intellectual property, contracts (including our license agreement with the CRF and our office and manufacturing facility lease), equipment and inventory related to our worldwide agricultural and horticultural markets. “

LOLOLOLOLOLOLOLOLOLOLOL Once they read this blog post, TheStreet.com is gonna be damn embarassed and they should be!

Like Sri over at CNBC “mistaking” paid for penny stock promotion for useful research, this “reporter” should be fired immediately for he or she has sucked thousands of naive investors by not caring/knowing how to do a little research. Sooooooo many idiots on Wall Street, naive investors, pathetic journalists, welcome to why PennyStocking works.

Now watch this thing tank as I make everyone aware! I expect to cover my short waaaay under $2/share.

TIM Lesson: Financial journalism is a joke, people with s#@$ track records can actually get their useless thoughts read, everybody rushes to judgment, you can profit from all this

I’d like to thank my parents for believing in me, CYGT for helping me understand how pathetic these tiny companies are, CNBC/TheStreet.com for teaching me about the joke that is financial journalism and most of all the freedom-hating SEC, for without you guys turning a blind eye to blatant stock manipulation, there’d be fewer pump and dumps to short sell into…so thank you everybody!

UPDATE: TheStreet.com put out a little correction saying they “incorrectly described…we regret the error…” Too little too late guys, stop focusing on getting hits through so much damn useless content and focus on lesser better content. But since I know you won’t change, I just gotta say thank you once again for the easy profits!

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42 Responses

1Jonathan

April 18th, 2008 at 12:38 pm

hahha….awesome post Tim!
2Max

April 18th, 2008 at 12:39 pm

under $2 tim? how long do you plan to hold for?

seems a bit optimistic
3timsykes

April 18th, 2008 at 12:40 pm

we’ll see how long it takes everyone to realize the stupidity, no reason why this shouldnt go right back to $1.6
4Max

April 18th, 2008 at 12:42 pm

yea, that’s the thing

people are pretty good at being really stupid for far longer than they should
5Davey

April 18th, 2008 at 12:44 pm

You’ve got a small position in terms of your total capital so this is one you can hold for as long as you think you need to. GL
6be-the-ball

April 18th, 2008 at 1:00 pm

had to make a phone call to get them but got 500 shares short 2.46 eden
7Margie

April 18th, 2008 at 1:02 pm

GOOG 12 million shares traded so far and V 10 million shares. V crossed $70 today, and earning is yet to come soon.
8GSC

April 18th, 2008 at 1:05 pm

Found 6k on AMTD and 10k on FID, broker assisted only.
9Margie

April 18th, 2008 at 1:05 pm

Call, and even Ameritrade will let you short EDEN, good article Tim. Thanks.
10Eddie

April 18th, 2008 at 1:12 pm

Tim,

FINALLY just dumped CYGT and closing E*Trade. I’m their big volume play of the day. Valuable lesson… but I’m ready to build some supplemental income.

Now, to get on board with TOS.

My eyes are opened, seeing all the potential plays you can make today, playing the “Craps” even with the market soaring.

Are you still in your short with EDEN?
11lmsmith

April 18th, 2008 at 1:13 pm

falling nice- I had to call my broker to get shares on this one……. not missing this one
12lmsmith

April 18th, 2008 at 1:14 pm

however… not much shares…. looks risky…look at that spike
13AJF-ESQ

April 18th, 2008 at 1:15 pm

no shares of EDEN available to short on eTrade
14Max

April 18th, 2008 at 1:16 pm

even with spike, trending lower and with very significant resistance at 2.60
15Margie

April 18th, 2008 at 1:16 pm

Broker assisted only at AMTD as well with $44 fees….to short EDEN through AMTD, probably TOS or FID does not charge extra.
16be-the-ball

April 18th, 2008 at 1:30 pm

margie,

AMTD gave me my internet pricing of $5 for my eden short.
17Margie

April 18th, 2008 at 1:31 pm

There is no other one than Tim, I ever found online to predict the stocks perfectly. Thanks for your post yesterday Tim, you made me 21 % richer on RDTA today!
18Margie

April 18th, 2008 at 1:32 pm

AMTD charges even $9.99 for online trade, how can it give for $5? I don’t get it.
19timsykes

April 18th, 2008 at 1:41 pm

damn completely forgot about RDTA! glad u didn’t!
20burky

April 18th, 2008 at 1:43 pm

My first short position with 400 EDEN at $2.50. Love the chat window feature with TOS, I had shares within a couple of minutes.
21Tony Ellis

April 18th, 2008 at 1:46 pm

OESX running on CNBC pump
22be-the-ball

April 18th, 2008 at 1:49 pm

margie,

if you are an active trader and you harass AMTD they will lower your commission rate. i threatened to leave for TOS and they lowered to $6 and then $5 for me.
23be-the-ball

April 18th, 2008 at 1:50 pm

i do 30 to 40 trades a day however…
24TechTrader

April 18th, 2008 at 1:51 pm

Tim-

Thanks for the heads up on ISRG (earlier this week) which I bought puts on yesterday and popped out of this morning for 59% profit. You gotta love the haters!

Peace brother!
25sonid

April 18th, 2008 at 1:51 pm

10 minutes and eden is down 20 cents like that hahahahah
26Max

April 18th, 2008 at 1:52 pm

well, EDEN is within my initial covering range… you making me greedy Tim, hopefully that’s a good thing…
27Max

April 18th, 2008 at 2:02 pm

liking what I see in the level 2 though, makes me more comfortable being greedy

I’d probably undercut the ask and attempt to short more, but I don’t want that big a position
28ExcelTrader

April 18th, 2008 at 2:02 pm

Nice heads up. May read up on this one a little. IB says shares available for short sale if shares can be located.
29monkiman

April 18th, 2008 at 2:25 pm

no shares available for EDEN available to short, I want a piece of this pie
30Webster

April 18th, 2008 at 2:28 pm

BetheBall does ameritrade flag you as a day trader than? I have an account with them and am worried about getting tagged.
31Jesse

April 18th, 2008 at 2:30 pm

Man…sometimes I wish my account was setup and I had money in it, just so I could take Tim’s advice…but at the same time I really do want to learn, to be able to find my own plays first…oh well.

I’m a total noob and really should understand how everything works before I start putting money into the pot, TOSs paper trading is cool, lack of real-time and the ability to borrow kind of sucks though.
32Sean

April 18th, 2008 at 2:34 pm

nice short, hope you shorted ABPI like i reco’d earlier also…….also, for one that should be a nice play for a couple bucks next week, RUNU, this company is a sham, but they run a good promo…looking to sell by wednesday with a double.,….
33cacaosteve

April 18th, 2008 at 3:04 pm

Tim, do you plan on holding EDEN until Monday?
34cacaosteve

April 18th, 2008 at 3:06 pm

nevermind, I see you covered
35Max

April 18th, 2008 at 3:10 pm

covered EDEN @ 2.36 - right inside the 2.30-2.40 range I was looking to cover inside
36umair

April 20th, 2008 at 7:20 am

hey tim thanks for your honest efforts….is it too late to short EDEN???? also i wanted to ask about using margin to trade??? u think its worth it???
37PETEKUSH(TIMBUCKS: $35)

May 11th, 2008 at 8:17 pm

u got him timmah