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Trading The Latest Hot Beverage Stock: Skinny Nutritional (SKNY.OB)

Posted by timothysykes on Sun 4th of May, 2008 08:11:52 PM
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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.

skny Trading The Latest Hot Beverage Stock: Skinny Nutritional (SKNY.OB)

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

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  • noobtrader.08
    Ok, so this would be one of those "perfect" short opportunities, right? Big swing UP, most likely will come crashing down???

    Thoughts?
  • noobtrader.08
    Oops... excuse the question above...
  • 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
  • Bubba's Preference
    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 !!
  • burky
    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).
  • oh yes i know he is!
  • nice chart, you only that weary with stocks under $1
  • Bubba's Taste Buds
    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.
  • ndfan19
    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.
  • 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.
  • jj
    ya...this one will be interesting to see. i agree it's a risky short right now.
  • Tim you'll love GETG


    LGDI trading well on lots of volume, curious how long this runs
  • 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
  • Davey
    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.
  • monkiman
    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
  • monkiman
    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...
  • Jibri
    hey monikman, where you getting your info from?

    Just finished watching Wall Street, wow, this changes the game. Forgive me I'm a newbie??
  • getshorty
    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.
  • monkiman
    Jibri, money never sleeps... lol
  • I love how your looking at this as a potential shorting opportunity. And im looking at it as a potential long opportunity :)
  • Oliver
    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.
  • Inkfin
    How to find one like SKNY to go long before it makes moves like SKNY?
  • brian
    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?
  • Davey
    Lol...LGDI dropped a PR this morning
  • 5holeSAVE
    Hey Tim
    What do you (and readers) think of running your comments in reverse - latest at the top?
  • 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.
  • Evan
    AEND will be the next bev pump and dump!
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Date Stock Buy Sell Net
Nov 19 AENY $2.80 $3.02 $1148
Nov 18 NLST $4.16 $4.40 $947
Nov 18 IMGG $1.42 $1.64 $2094
Nov 17 NLST $5.04 $5.59 $2195
Nov 13 VRMLQ $21.50 $22.97 $2901
Nov 11 EONC $2.61 $2.80 $687
Nov 10 EONC $2.74 $3.36 $9784
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Nov 4 COT $8.66 $8.88 $642
Nov 4 QXM $4.61 $4.89 $822
Oct 30 DDRX $25.70 $26.53 $812
Oct 29 CTDC $4.00 $4.42 $781
Oct 26 AWSL $3.24 $4.10 $2516
Oct 23 RODM $5.27 $5.23 $301
Oct 22 AMLM $2.69 $2.97 $820
Oct 22 USEG $6.12 $6.09 $85
Oct 20 CBOU $8.93 $9.06 $243
Oct 16 VRMLQ $16.79 $18.65 $2773
Oct 13 YONG $11.05 $11.66 $1202
Oct 13 NPHC $0.59 $0.71 $583
Oct 12 IMGG $0.60 $0.70 $682
Oct 9 ZAGG $5.50 $6.10 $2380
Oct 7 GVBP $0.03 $0.27 $702
Oct 1 NPHC $0.70 $0.85 $1482

Total: $98,094 (681%)