Why I Shorted Probable Fraud Hydrogen Hybrid Tech Inc (HYHY) & Think Its Headed Lower

Posted by timothysykes on Wed 18th of Jun, 2008 06:49:26 PM

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After initially writing about why I’d bought HYHY right before the market close for an overnight long yesterday, now I’m writing about why I shorted the same stock right before the market close today (welcome to trading). After all, I’d already taken my poorly timed $300ish profits—leaving $500 on the table…life could be worse–and I have no allegiance to it whatsoever—it’s just the latest probable fraud to have sent out a massive spam mailer that sucked in naïve greedy buyers.

You know what, now that I’m short, hell, let’s call a spade a spade—it’s a total fraud, as I outlined in my original post. But that’s not why I went short…

I shorted 2,000 shares at $2.31, emailing TIMalert subscribers with plenty of time before the market close—already up 6 cents/share on my position—because this pile of manure exemplified the classic “falling off a cliff” intraday pattern that’s usually the end to so many runs, meaning the market makers couldn’t prop it up anymore as all, or mostly all, of the spam buyers had already bought, leaving a massive supply-demand imbalance that could only be resolved with lower prices (that might attract some buyers).

You can see a similar intraday pattern on fellow spammer/fraud FORC, which also tanked from the high $2s to the low $2s and two days later—without any meaningful bounces whatsoever—then there was another panic to $1.50ish. The fact that FORC took a massive dive at first while HYHY has only taken a baby dive (so far) leads me to believe I won’t have to wait around for two days to deal with ANY dip buyers, I think there’s a pretty damn good shot at a morning panic that takes this under $2 tomorrow.

Especially since there’s little to no support until $1.80ish and if it cracks through that—which is totally possible if we take into account stop losses—LOL the irony always cracks me up with people using stop losses, or a half-assed safety measure, when they buy spam stocks, the worst stocks in the world—then its utter devastation time as it’ll be even more demoralizing for ALL longs, so support comes in at $1.50.

Don’t think it can crack that fast? Sure it can, remember there’s not a real company behind it, it can plummet fassssst, remember CNEX? Yup, $7 to $2 in 1 day! I wouldn’t even rule out under $1 once the tide turns on this sucker, which has seemingly already begun.

Especially since this was a massive volume day, not likely to be repeated, meaning its hugely demoralizing to have wasted so much buying power and still finish red, albeit slightly, on the day.

Especially since today was a perfect shooting star chart pattern, the exact same pattern that represented KYUS’ ultimate top and the day before it dropped $1/share in one beautiful morning panic

spam and bam1 Why I Shorted Probable Fraud Hydrogen Hybrid Tech Inc (HYHY) & Think Its Headed Lower

Despite the overwhelming of technical evidence against HYHY, just as when there was some nice bullish evidence the day before, I could be wrong…in which case, I still think my risk (stock going higher) is limited due to all the nervous longs and aggressive short sellers who are sensing a major top here aka would love to short into any bounce whatsoever.

This is the total inverse of yesterday: big potential downside, little upside = good risk-reward overnight short.

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Woodrow

There's no way HYHY can be a fraud, the paper the flyer is printed on looks so real, LOL. It's about to go up 500%. They wouldn't lie.....would they? lol
I just got my mailer in today, a few minutes ago. I remember the KYUS flyer also, but I made a little money on that before it tanked.

timothysykes

haha yes, the paper is nice...if I have the patience to hold this, it'll probly be under $1 within a few months...somehow I think I'm just gonna take 20-30 cents/share and be on my way

Fantom

I need a phone that I can trade from. Any ideas?

TomT

Tim.. you have a month trial on your TIMalert subscribers ..I would totally sign up for a month trial program. Still a small timer.. so dont have much funds to folk over ..

Atrain

It is silly for you to call HYHY a scam just because they spent money on advertising. HYHY's technology has been tested and verified to lower emissions and decrease fuel consumption. We need companies like HYHY to reduce our dependency on foreign oil. This country is headed for a serious recession. Americans should be investing their money in alternative energy companies if they want to prevent the next Great Depression.

Evan

I hear ya Fantom- I've been eyeing the new iPhone. Working for a living when it doesn't involve trading is killing me! I guess I could short HYHY in the morning (preferrably on a morning spike- sorry Tim and Timalerters), but most of my cash is tied to good ol' value investments- haven't they done well the past few days:( I've been watching AQQ's slow death- any thoughts Tim?

timothysykes

Atrain its silly for u to say their "technology" is anything other than nice spam mailers. THEY HAVE $68,000 IN REVENUE and $9,000 IN EXPENSES. my blog does more business than that AND has higher expenses. hell i dont need a $200mil+ marketcap, i'll settle for $50mil...and my blog has been tested and approved to revolutionize the boring finance industry, guaranteed to help people learn how to short sell into the next great depression

AJF-ESQ

Jeff I'm long PINN overnight as well......and I made money all day scalping ROYL long

Atrain

I understand, I am just frustrated by people discrediting hydroxy gas as a supplement to gas without looking into it first.

DaBear

Hay Tim,

Thnx for the buy yesterday on HYHY took it from 2.39 to 2.61 & made a virgins cherry.

I also wanted to include for the other newbies out there a list of the four people I learned the most from not in any perticular order of course.

Timothy Sykes Blog/Book
Fausto Pugliese Free Course Cyber Trading University
Brian Shannon Blog/Book AlphaTrends
Andrew Horoitz Blog/Book/Podcast The Disciplined Investor

Anthony Brown

Fantom,

With the new iPhone 2.0 SDK (for the current iPhone and the new iPhone 3G) I'm hoping the brokers create some good trading software. A few weeks ago E-trade announced it's blackberry platform, hoping that helps to stimulate the other brokers into doing similar things with the iPhone.

My suggestion - wait a few weeks, then make your decision.

Silly

Never trust door to door salespeople HYHY is another hype shell
I got both the KYUS and HYHY mailers and wonder how the heck do you track down the senders and get off the mailing list??
Keep on shorting Tim and help gut the spammers till HYHY hits .30 cents! where it belongs or less, try .00 :)
IF HYHY is real then let it rise on its own value not on hype!

Superman

Tim,,,,now this one I can agree sounds like it has issues,,,,$68k in revenues??????????????

Rambone

You know you're in the big leagues when you are in wikipedia.

http://en.wikipedia.org/wiki/Timothy_Sykes

A more fitting picture would have been one with you and a bear.

Rambone

During the six month period ended March 31, 2008 the Company generated $137,125 in revenues versus $10,239 in revenues for the same period last year. During the three month period ended March 31, 2008 the Company generated $68,145 in revenues versus $5,057 in revenues for the same period last year. Cost of sales for the six month period ending March 31, 2008 was $92,480 or 67.4% of revenues

Numbers above don't look half bad if your company had a cap of 5 million. The problem is this company has a cap of 290 million. I'm not getting these numbers from a Hollywood Script either.

http://secfilings.nasdaq.com/filingFrameset.asp...

Michael Goode

If anyone cares about the 'reality' of HYHY's business, take a look at TMFBent's blog posts (followup here) on Motley Fool CAPS.

Disclosure: I'm short HYHY @ $2.28.

Michael Goode

Fantom - I just bought a Sprint Mogul. TOS has a spiffy program that runs on it and other Windows Mobile phones. Main reason I went with that? Sprint SERO, which gets means I get unlimited texts and data and 500 minutes for $30/month -- see my blog post about it.

Mike

I need to understand TOS a ton before doing any trading.

I need a "how to."

DaBear

Mike TOS has lots of video How tos as well as on of the best if not the best paper trading platforms availble.

trader@MIT

Today on facebook I saw a group for lower gas prices, it killed me. I drive a Lincoln SUV that gets 13 MPG on premium gas, and I'm not complaining. I'm loving every moment of this. Don't complain, buy oil microcaps.

YngvaiMalmsteve

Man, there are some morons over on the Yahoo message boards. Some guys over there can't figure out why SSN is up today. "No news!" they say. One guy thought it's because one guy keeps buying thousands of shares to drive the price up. Another guy thought it was a short squeeze. IT'S BECAUSE OIL IS UP, YOU DUMMIES!

Fantom

Thanks for the comments on the phones guys.

Its great to be a part of the Tim dynasty!

Floods, hurricanes, gas, tomatoes, oh my!

Now we will expose these corrupt companies. They will have no choice but to show the correct balance sheets.

To the newbies, congrats on joining the Dark Side!
When you come to the table always bring something to share.

Companies destined to kneel;
http://finance.google.com/finance?client=ob&...

$$/Signed/$$

Fantom

About the phone guys, is it better to get one with windows mobile?

Fantom

HTC Mogul vs a Blackberry?

GT4NE1

Just finished your book Tim. IMO, it's very good. A good tale of the rise and downfall laid out in an entertaining and easy to read manner. I am not a reader at all. I work in the IT industry, so most of the reading I do are IT books that I treat as reference manuals. I haven't read a book cover to cover since I was a kid and I finished yours in 3 sittings.

Watched the DVD's too. I must admit they are a little different than what I thought they were going to be, but now that I have read the book, I will watch them again (like you recommended), before I pass final judgement.

Thank your Mom for sending everything so quickly too. They got to southern California in like 2 days! Awesome service.

Also, I subscribed to TIM Alerts last night after you wrote on your blog about going long overnight into HYHY. I bought some this morning and rode it a little longer than you did and got out up ~10%. Geez, she was a slow mover though. :) First month of Tim Alerts paid for itself on the very first trade! Now the rest of the month will be gravy and what I'm calling free education. :)

Wall Street Warriors was good too.

Keep up the good work!

Thanks,

GT4

Mark

Hey Tim, I tried to borrow HYHY from TOS this morning. Phil at TOS said I cannot borrow otc stocks that are under $3. What is that? I just borrowed HYHY last week. It was under $3 then. Any advise Tim? Thanks.

Adam

nigeria got attacked and they're closing oil fields.... glad im long today :)

balls...or just plain nuts...

Anyone else holding energy stocks overnight have sugar plums dancing in their heads all night? I woke up dreaming royl was 11.xx (no kidding!) and lo and behold premarket trading is up!

Adam

i thinks it's kind of funny that even the shorts are long on all these oil stocks

Al

http://www.russell.com/indexes/membership/recon...

Russell Microcap additions as of June 13, 2008

TGC

If anyone cares..

Al

Russell Microcap additions as of June 13, 2008

PDO

Al

Imagine TGC making a run like PDO now that would be something.

lmsmith

I am long TGC @ 1.75- and long KOG @ 4.84 since yesterday- I will unleach these shares some point today----

HYHY tanked as expected after all that hype..... GOSH I need to quit my job- then I can really focus on these plays...

I also wanted to buy in on PDO @ 25.67 during the open yesterday- I knew it was going to run.....but I didn't act.... Screwed myself

also I bought ABk yesterday @ $2.02- don't ask why- I know it will go higher, in due time

lmsmith

Have any one looked at MEDE <~~ up 287.13% in one day.....

Mike_13th

congrats to all that held TGC SSN overnight,gonna be at open looks like

investorslive

TGC nice this morning

HYHY I think gaps and runs then has a healthy fall followed by consolidation and more highs - theres just too many mailers hitting for it to end yet.... but then again anything is possible

Mike_13th

MEDE a buyout,not worth watching imo
.39 range yesterday,probably less today

Adam

ssn looks to be a good buy even after open during a dip, it has a lot of rebounding to do if it follows the chart.

tgc is good to 2.10 then im out. if it breaks that i'll re enter

Fantom

Let it rain;

leh
cc
ms
pir
dhi
kmx
hun

Jeff

I held PINN and TGC over night and both are looking to gap up quite nicely this morning!

Bob (VC)

Fantom- the iPhone works great with TOS's ThinkPod service. It also works well with TDA's mobile platform (althought their mobile kinda sucks). It can load the full TDA page w/o any issues.

Now that the 3g is (almost) out and it's only $200 (with AT&T subsidies), plus the app store about to open, it's kinda hard to justify anything else..

Fantom

lookin to short mede

Mike_13th

STXX late hit pre...MGI RTK PDO also now

Mike_13th

SSN 20% ... MEDE a buyout,will not move

Mike_13th

SSN 30%

Mike_13th

out now SSN from 3.50 yesterday to sell 5.97,vacation time

Love this crap!

timothysykes

HYHY gave everyone a chance to short this morning, now its time for the dump!

Mike_13th

looks like 5.97 perfect sell SSN...5.27 now

SkyeLady

Hello everyone,

I received the mailer this week on HYHY and it looked like a candidate for shorting. My question is in regard to shorting penny stocks that are under $3.00. Which brokers allow you to short penny stocks under $3.00? My brokerage firm doesn't allow it for stocks under $3.00 and sometimes under $5.00?

Thank you.

Mike_13th

HYHY yes..BDCO short too

Mike_13th

SSN at 5 now ,get down

investorslive

careful shorting guys this isn't small money pushers - they did a lot of fakes to gather the shorts if it holds $2.30 its going to squeeze - any shorts should be quick trades

Mike_13th

SkyeLady

I use IB,many here use TOS

BDCO now lods 2.09

Bob (VC)

SkyeLady, with Ameritrade you can short penny stocks, but only those on a major exchange (ie, no OTC or Pink Sheets).

Hence, I couldn't short HYHY if I wanted to.

Need some funds for my TOS account, but they keep going into my gas tanks..

Mike_13th

SSN ha...4.65 right off dead even 6, why i love trading around even marks

BDCO 2.02

Mike_13th

SSN 4.50, took a buck short so far

Mike_13th

SSN buh buh 4.10

sirgerald

FBI LAUNCHES SEARCH FOR ALLEN STANFORD'S FELLOW FRAUDSTERS

Now that Elandia founder and Ponzi schemer Allen Stanford is in the hands of the FBI, the Feds are looking for his network of swindlers including Sydney D. "Trip" Camper III. According to SEC filings, Trip Camper was forced to resign from Elandia by Stanford. Unfortunately, the Ahkoy family business, Datec, fell victim to investment fraud by Elandia's Allen Stanford and Trip Camper. Before the bad news could spread, Trip Camper found a new victim in the form of a private Los Angeles company with aspirations to go public. With the help of his new partner in crime, Ed Berkhof, Trip Camper formed a "shell" holding company and ruined this honest company as he did Datec, the Ahkoy family business. Since becoming victims of Elandia fraud, the Ahkoy Family is suing Elandia in Pacific and Florida courts. Meanwhile, Trip Camper remains at large. Recent articles reveal that "FMC Telecom has acquired SMS..." and lists Ed Berkhof as the appointed COO. FMC Telecom founder Frank Cassidy is either Ed Berkhof's NEW partner in crime or he has unfortunately fallen victim to investment fraud orchestrated by Ed Berkhof.

Investors Beware! The FBI is looking to prosecute thieves like Allen Stanford, Bernie Madoff, Trip Camper and Ed Berkhof who are leaving a path of destruction and a wake of fallen victims of fraud. Don't be a victim of investment fraud.

View SEC links

http://www.secinfo.com/d14D5a.v6Q98.c.htm
http://www.secinfo.com/d14D5a.v6Q98.d.htm

sirgerald

FBI LAUNCHES SEARCH FOR ALLEN STANFORD'S FELLOW FRAUDSTERS

Now that Elandia founder and Ponzi schemer Allen Stanford is in the hands of the FBI, the Feds are looking for his network of swindlers including Sydney D. "Trip" Camper III. According to SEC filings, Trip Camper was forced to resign from Elandia by Stanford. Unfortunately, the Ahkoy family business, Datec, fell victim to investment fraud by Elandia's Allen Stanford and Trip Camper. Before the bad news could spread, Trip Camper found a new victim in the form of a private Los Angeles company with aspirations to go public. With the help of his new partner in crime, Ed Berkhof, Trip Camper formed a "shell" holding company and ruined this honest company as he did Datec, the Ahkoy family business. Since becoming victims of Elandia fraud, the Ahkoy Family is suing Elandia in Pacific and Florida courts. Meanwhile, Trip Camper remains at large. Recent articles reveal that "FMC Telecom has acquired SMS..." and lists Ed Berkhof as the appointed COO. FMC Telecom founder Frank Cassidy is either Ed Berkhof's NEW partner in crime or he has unfortunately fallen victim to investment fraud orchestrated by Ed Berkhof.

Investors Beware! The FBI is looking to prosecute thieves like Allen Stanford, Bernie Madoff, Trip Camper and Ed Berkhof who are leaving a path of destruction and a wake of fallen victims of fraud. Don't be a victim of investment fraud.

View SEC links

http://www.secinfo.com/d14D5a.v6Q98.c.htm
http://www.secinfo.com/d14D5a.v6Q98.d.htm

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See Tim's full bio HERE. Tim turned a few thousand dollars into a few million by taking small gains time after time on hundreds of volatile penny stocks, discovering that his trading strategy, while consistently successful, works best for those with smaller accounts.

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How Can I Consistently Make Money In The Stock Market?

Hard work, Determination and Know How.

Hard work to learn how the greatly misunderstood niche of penny stocks provides opportunities every now and then on which you should pounce.

Determination to seek those probable profits out and know how in order to actually profit from them.

Long story short, wait for stocks that are extremely volatile - for whatever reason - and then aim to take small profits (between 10 and 50% within a few hours, days or weeks) here and there, either from betting on higher or lower prices (yes, you can make $ betting on lower prices, it's called Shortstocking (learn more HERE).

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Date	Stock	Buy	Sell	Net
Nov 6	QXM	$4.31	$4.80	$1936
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: $92,304 (644%)