Trading The Latest Hot Beverage Stock: Skinny Nutritional (SKNY.OB)
Skinny Nutritional (SKNY.OB) (oxymoronic?) just launched the latest zero calorie water brand, Skinny Water, lured in some third-tier Coca Cola executive to serve on their board, basically entirely for his title (giving him 2mil shares–and many others many millions more–while unsuccessfully / humorously / amateurishly trying to ticker spam that announcement to get included in the Yahoo! news of Coca-Cola bottling (COKE), Pepsi (PEP) and of course Coca Cola (KO) (silly pumpers, for some strange reason, you guys haven’t read my book An American Hedge Fund, if you had, you’d know ticker spam is for kids…back in 1999-2000!), all the while trying to pitch themselves as the next Vitamin Water.
Too bad this is the 3rd name for this turd of a shell company and it’s being promoted hardcore by all the usual suspects…think about how many girls with low self-confidence / who are worried about their weight will drink this, I can see the commercials now “all you need is 1 skinny water/day and bulimia and the guys will be fawning all over you!” Reminds me of similarly tickered take-the-company’s-cool-sounding-product-out-with-the-trash-before-it-stinks-up-the-place SKNN, which tried promoting some cool crappy shoes
As for shorting a 50 cent stock up from 5 cents a few weeks ago, careful, I hate shorting stocks under $1, no matter the stench from this carcas business and that I doubt it can keep up this heavy volume for much longer, the risk-reward sucks. And, whoever’s pumping this thing is spending some serious $, so if you enter too early your account will be euthanized as if your name was Eight Belles.
Remember, I’m not like CitronResearch, short selling 
stocks just cuz they’re scams—I’m a cynical guy, there ain’t enough $ in the world to bet against all the scams out there—on the contrary, I’m not short SKNY here and I sincerely hope these pumpers can get it much higher (as then I might be interested!)…cuz I profit from shorting these scams ONLY WHEN I THINK THERE’S A SOLID RISK-REWARD RATIO …as I detail in what else, my 6-hour PennyStocking instructional DVD!
Next generation drinks have been hot ever since HANS a few years ago, which led to a huge JSDA spike, which opened the door for a BRVO pump and dump…all are struggling now, the pump and dump the most, as is typical, but each of those annihilated early short sellers.
Scams might be bad—whatever, grow up Peter Pan—but they spike the quickest cuz the scammers only care about stock price and are not weighed down by running any actual business. As difficult as it is to understand, this is good for shareholders—at least until the bubble burst—as it’s much better than crazy arrogant CEOs who care more for their big-time businesses than they do their shareholders
Enjoyed this post? Sign up below and never miss a post again!
LoadingTIM make you some $$$$? Help him pay his expensive web designer!
Related Reading
Add a Comment!
If you want to receive TIMbucks, you'll first have to Login before posting a comment. Click here to learn more on the new TIMbucks rewards program.
Top TIMbucks
Join the ranks! TIMbucks is a cool new rewards program designed to get you guys to share your thoughts, ideas and experiences openly. Our top TimBucks earners to date are:
- Davey (134)
- Yngvai (125)
- ViciousChicken (105)
- ivegotstylekid (82)
- timothysykes_forums (75)
- jj (72)
- Dan_O (50)
- Ben_Bien (47)
- Blithe (43)
- investorslive (39)
Navigate
$
Updated Daily!
136 Books
Up 52%
20 Videos
3 Podcasts
8 Talking Pics
65 Links
Stocks Review
UPDATES
May 16, 200810 stocks to watch today
PDO already up $1.25, sux I'll be away all morning workin' on TIMtv, got 500 shares reserved to short if need be this afternoon
Also reserved 3,000 FORC and KYUS for potential shorts
May 15, 2008Yup, by next Monday, everything's gonna be real working-like!
May 15, 2008PDO, up $4+ today, will teach you not to randomly short strong penny stocks, get in, get out then run...cuz sometimes they squeeze stubborn shorts to death!
May 15, 2008No ideal short plays today, check out these 2 interviews while we wait for price action perfection
I wish I'd listened to my own rulebook, instead got squeezed for $400 shorting blatant-fraud KYUS too early...someone needs a refresher course this weekend!
I nailed NCOC's 20% rise today in my pre-market post, but I was too biased against buying little breakouts, learn from my mistakes!
Stock Watchlist
| XRM | $4.57 | |
| SSBX | $3.20 | |
| APWR | $22.47 | |
| VRML | $2.73 | |
| NTHH.OB | $0.25 | |
| DPDW.OB | $1.04 | |
| CROX | $10.95 | |
| SUNV.OB | $1.44 | |
| AYSI.OB | $2.07 | |
| FORC.OB | $2.29 | |
| CNEX.PK | $4.65 |
TIMtrades
Learn from my successes, learn from my failures, learn from 
50% TIMreads
TIMtags
Loading ...
1noobtrader.08(TIMBUCKS: $4)
May 4th, 2008 at 8:17 pm
Ok, so this would be one of those “perfect” short opportunities, right? Big swing UP, most likely will come crashing down???
Thoughts?
2noobtrader.08(TIMBUCKS: $4)
May 4th, 2008 at 8:20 pm
Oops… excuse the question above…
3Christopher Cianci(TIMBUCKS: $16)
May 4th, 2008 at 9:14 pm
Love the new design Tim - keep up great work
ps. just watched Wall Street Warriors episode with you golfing with your friend. Haven’t laughed that hard in a while
4Bubba's Preference
May 4th, 2008 at 9:37 pm
Bubba don’t need no Tim Bucks. Bubba just likes this site and all the info gleaned from it. Can Bubba invest Tim Bucks? Bubba’s reward is measured in how much fun he has passing the time ‘o day looking at all the stuff on this site.
Keep up the good work, Tim. Bubba thinks this is a really entertaining site. Bubba don’t wanna hafta login to see it. Bubba all ready has his book full of logins and it’s gettin’ tiresome and tedious to keep track ‘o all them passwords. Geeziz, going site to site is gettin’ frustratin’, especially when Bubba forgets a password. Dang !!
Bubba knows Pimlico’s next. Preakness, 3rd Saturday in May every year. Lookin’ for 3ple Crown winner this year. Yes !!
5burky(TIMBUCKS: $16)
May 4th, 2008 at 10:02 pm
Tim, you’re web developer is great … I posted an issue with your new site with the feedback form and he was all over it. And, what other site allows you to move stuff around!! (well aside from igoogle).
6timothysykes
May 4th, 2008 at 10:04 pm
oh yes i know he is!
7ivegotstylekid(TIMBUCKS: $82)
May 4th, 2008 at 10:10 pm
nice chart, you only that weary with stocks under $1
8Bubba's Taste Buds
May 4th, 2008 at 10:13 pm
Bubba’s taste buds don’t like cola. What’s this stuff taste like? Bubba ain’t never seen it out here where he is, so Bubba’s gonna keep on buyin’ YooHoo and green tea.
Bubba’s sense tells ‘im this co’s a joke. Short at 3.50 and never another chance … unless…! Well, Bubba’s hopeful. Mother’s Day in Hollywood? The Tinsel Town of Hype. Yeah, Bubba’s hopeful and watchin’.
Bubba’d rather watch a long on WBD. Always good for 10 pts. Wallet fattnin’ good ’stuff’ stock.
9ndfan19(TIMBUCKS: $10)
May 4th, 2008 at 10:26 pm
i know i would not short this stock tomorrow. its got a long way to go before it turns around. i’d say its time to go long on it first thing tomorrow and ride along all the way to $1, a nice 100% gain. hype is coming now, just watch.
10GoodeValue.com(TIMBUCKS: $14)
May 4th, 2008 at 10:53 pm
Tim - you should inform your readers about the negative leverage inherent in shorting sub-$2.50 stocks due to the NYSE margin rules for member firms.
The NYSE rule can be found here.
If you’ll pardon the blog spam, I wrote about it previously.
11jj(TIMBUCKS: $72)
May 4th, 2008 at 11:17 pm
ya…this one will be interesting to see. i agree it’s a risky short right now.
12investorslive(TIMBUCKS: $39)
May 5th, 2008 at 12:02 am
Tim you’ll love GETG
LGDI trading well on lots of volume, curious how long this runs
13timothysykes
May 5th, 2008 at 12:05 am
GETG is a misprint, hardly any volume at end of day runup, also its a pinkie so i doubt there’l be any shares
LGDI is #1 on my watchlist for tomorrow
14Davey(TIMBUCKS: $134)
May 5th, 2008 at 12:09 am
I almost totally forgot about mentioning LGDI, had a big spike a couple of weeks ago when it first broke out than had a big pull back, def. shaping up to be the next play.
15monkiman(TIMBUCKS: $32)
May 5th, 2008 at 1:25 am
LGDI looks like an uptrending stock, with a very big up day on friday. I have put it on my watchlist also. hope to make some $$$ tomorrow
16monkiman(TIMBUCKS: $32)
May 5th, 2008 at 1:52 am
FEED also looks interesting with a big up day on friday… it could retrace down or surge more higher….either way, another good play to watch and scalp…
17Jibri
May 5th, 2008 at 1:52 am
hey monikman, where you getting your info from?
Just finished watching Wall Street, wow, this changes the game. Forgive me I’m a newbie??
18getshorty(TIMBUCKS: $3)
May 5th, 2008 at 2:24 am
GoodValue
The only implication that the 2.50 rule has is that you can only short as much as your balance in the account, divided by 2.50 and multiplied by the market price of the stock.
Therefore, if you have $25 000 you can only short up to $10 000 of a $ 1 stock. Thats it.
SEC puts this in place in case somebody gets killed the broker doesn’t gets the bill, or also I guess in order to protect short sellers to some extent.
I am not sure what is your point in mentioning that rule.
19monkiman(TIMBUCKS: $32)
May 5th, 2008 at 3:13 am
Jibri, money never sleeps… lol
20cameron fous
May 5th, 2008 at 3:31 am
I love how your looking at this as a potential shorting opportunity. And im looking at it as a potential long opportunity :)
21Oliver(TIMBUCKS: $12)
May 5th, 2008 at 5:09 am
going long seems riskier to me than gonig short now. but probably its better to just sit back and wait until signs of weakness come.
22Inkfin(TIMBUCKS: $8)
May 5th, 2008 at 5:24 am
How to find one like SKNY to go long before it makes moves like SKNY?
23brian
May 5th, 2008 at 7:49 am
hey tim,
at what price are you looking to short lgdi? do you think it will have a quick early morning spike and then can tumbling down?
24Davey(TIMBUCKS: $134)
May 5th, 2008 at 8:04 am
Lol…LGDI dropped a PR this morning
255holeSAVE(TIMBUCKS: $5)
May 5th, 2008 at 8:49 am
Hey Tim
What do you (and readers) think of running your comments in reverse - latest at the top?
26GoodeValue.com(TIMBUCKS: $14)
May 5th, 2008 at 9:53 am
getshorty — the point is that seriously reduces leverage. If you have a $0.50 stock, shorting it with 20% of your portfolio will suck up all your cash or margin. Probably not a big deal if you are a daytrader, but because it prevents non-day-trading shorts from hitting the stock, it means that shorting any stock under $2.50 is really dangerous. Also, even if you are a daytrader, shorting a $0.25 stock would mean you could never be short it more than 10% of your portfolio value or do anything else while you’re short it.
27Evan(TIMBUCKS: $3)
May 5th, 2008 at 5:32 pm
AEND will be the next bev pump and dump!