Over the weekend, microcrap speculators everywhere have been debating (RDTA). While I wrote about the briefly HERE (Friday morning pre-market…before its 40% surge…thank you, thank you), I was right not to touch it in the morning cuz it was just too illiquid, but ‘twas wrong of me to be neck deep in fundamentally flawed / factually inaccurate but sub-par-chart-play EDEN, failing to see RDTA get pretty damn liquid mid-day after they released this fluffy PR about some crappy revolutionary new web search “add-on” and announcing a name/ticker change to blah bah blah.
Unlike ignorant financial journalists, I’m not even gonna dignify these laughable pieces of s#@! news pieces by detailing their BS contents). Those of you who’ve read my book An American Hedge Fund know these crappy companies loveeee trying to hype themselves with meaningless name changes—no different than adding a “dot com” to the end of their name back in 1999-2000…except now they’re just trying to get prospective suckers investors to forget their stock is 70% off its 2000 highs aka they’ve still got some bitter shareholders.
All cynicism aside, their new product does look useless cool—just the kind of thing to get suckers investors excited, Mamma.com-style, which went from $4 to $17 in a few weeks back in 2004…oh wait they changed their name too—now they’re Copernic (CNIC), trading at 1/17th of their former highs (yup, I’ve got thousands of momo stock corpses to back up my PennyStocking theories, in case you ever wanted any evidence of the damaging long-term effects of microcrap pumping)
And lest we forget, no matter this 40% one day pump & dump surge, it’s a perfect chart breakout, so hopefully it can run a bit more before becoming—inevitably—a great short. Add in the fact, they’ve got a new ticker on Monday—damn, I guess I do have to include that—TIGR (which just makes shorting a bit trickier since it might take 1-2 days to show up on some brokers available list) and we might just have a multi-day runner yet.
TIM Lesson: Respect the pump/hype, but never believe it
Disclosure: No position yet, stay tuned, crap company/crap product runners like this make for the most interesting high percentage short selling opportunities around…
Tags: Analogies, Hot Stocks, Story Stocks, TIM Lessons
