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Red Chip & Charles Payne Present 23 Potential Shorts

March 23, 2010 at 10:02 am
by Timothy Sykes

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Remember I did a post back in December highlighting 64 potential shorts because they were presenting at a microcap conference?

PennyStocking DVD students, TIMalert subscribers and PennyStocking Silver subscribers know my reasoning is that only the most cash-starved companies attend these things because they need to lure in attract institutional investors to buy into their “revolutionary product/business” to get their stock price high so they can raise money and survive/insiders cash out….a little stereotypical, but almost always true.

Institutional investors aren’t as naive as the normal penny stock investors so they know the vast majority of these companies will fail, but they also understand that a powerful smallcap story can spike a stock for several months/years before the inevitable failing and many PIPE funds just need the stock up long enough to pull off some toxic financings…

Basically, I view all companies that present at conferences hosted by PIPE financing companies like Rodman & Renshaw Capital Group Inc. (RODM) and other “service providers” in the smallcap and microcap arena as potential shorts.

And even though that post angered many “investors” in these “companies”, in just three months, this abstract strategy already had some masssssive wins:

Electronic Game Card, Inc. (EGMI)’s investors were the most outraged by my simple post and spread it around so much that it became my most popular post of 2009 despite EGMI just being mentioned along with 60+ other companies…I should’ve realized, angry longs on message boards means DEFINITE short as the stock was halted by the SEC for accounting issues and has dropped from the $1s to 20 cents/share

Medifast, Inc. (MED) has had all sorts of scandal issues being “busted” by several websites and the stock has dropped from the low 30s to the low 20s.

CrowdGather Inc. (CRWG) partook in blatant stock promotion, but its stock strength only lasted a few weeks, now its dropped form $2 to $1 in just a few days.

Zagg Inc. (ZAGG) seems to have fired their stock promoters, mistakenly believing investors would stick around, but they were wrong and the stock dropped from the 4s to the 2s

…and these are just a few examples…

You can imagine my delight to read this press release about a new conference beginning today sponsored by good ole FOX News’ Charles Payne, who most people don’t realize whose firm has been fined $400,000+ in the past for blatant stock promotion and Red Chip, one of the many smallcap and microcap “service providers” (they provide “exposure”…worked well for ZAGG…for a few months at least), who, besides BiomedReports.com, is the only firm to have ever contacted me complaining about something I said in my posts (I complied and took down my comments) (remember this lesson, when a company like Red Chip or investors in EGMI complain about simple blog posts, that means they are verrrrry protective of their image….which raises even more red flags…as EGMI’s eventual SEC halt and 90%+ stock drop proves).

Forget “classy” RODM conferences, they have ex-presidents as their keynote speakers…Red Chip features a guy whose firm was fined $400,000+ by the SEC for abusive stock promotion (he failed to disclose his picks are paid for stock promotion, not his real opinion)…does that tell you anything?

Here are all the companies presenting at this Red Chip/Charles Payne conference, some of them have paid Red Chip to present for “exposure”, but ALL of them are potential shorts for me:

Newtek Business Services, Inc. (NEWT)

L&L Energy, Inc. (LLEN)

China Gengsheng Minerals, Inc. (CHGS)

Longwei Petroleum Investment Holding LTD. (LPIH)

SOKO Fitness & Spa Group Inc. (SOKF)

GC China Turbine Corp. (GCHT)

China New Media Corp. (CMDI)

China Education Alliance, Inc. (CEU)

Derma Sciences, Inc. (DSCI)

Viridis Energy Inc. (VRD.V)

Telestone Technologies Corporation (TSTC)

Dolphin Digital Media, Inc. (DPDM)

ICOP Digital, Inc. (ICOP)

DRI Corporation (TBUS)

WPCS International Incorporated (WPCS)

Pressure BioSciences, Inc. (PBIO)

NovaGold Resources Inc. (NG)

South American Silver Corp. (SAC.TO)

Seanergy Maritime Holdings Corp. (SHIP)

Funtalk China Holdings Limited (FTLK)

T3 Motion, Inc. (TMMM)

Industrial Services of America, Inc. (IDSA)

Aethlon Medical, Inc. (AEMD)

Posted in Adapting, ALFSS, Basics, Short Selling, Stock Promoters

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  1. Red Chip & Charles Payne Present 23 Potential Shorts
  • nam omer

    you know who attened last Rodman & Renshaw Capital Group Inc confreence in china ,colin powel,bill clinton and other well known names ,stocks will go up and down ,you are a moron who doesnt know any thing ,about ur comment blatant stock promotion ,,,all co pay other co for promo,aig did it citi did it when they ipo they hire other co to promo them whats new here.

  • Anonymous

    are you nuts timmy?
    you think TSTC is a short?
    that Payne dude is a whacko true but to say TSTC is a short, requires big balls
    I’d love to see you short it…right before earnings…when the company has said repeatedly it’s 4th q is gonna be equal to the first three qs combined…

  • http://www.timothysykes.com Anonymous

    rodm bought their big name speakers, doesnt change the scummy biz

  • http://www.timothysykes.com Anonymous

    i dont short real companies, but i would never be long one of these kinds of companies either

  • A reader

    Tim, interesting thinking.

    You are correct in a way: the companies attending Redchip/Rodman conferences for two reasons, PR and finance.

    You may think attending the same conference with Charles Payne is a bad PR. Considering that those companies are relatively unknown, I would argue that any PR is good PR. I, for one, was made aware of some of those companies via earlier redchip/rodman conferences and made stock purchases after additional DD. Payne/Clinton/Colin Powell (or Brad Pitt) are totally irrelevant for me.

    On Pipe finance – Tell me one growth company which do not need money. Cash flow is always a constraint for any company with real growth – you need (more) money to make (more) money, it is as simple as that. The issue is not the pipe finance, but rather, how a finance deal is structured.

    I sincerely hope that your readers do not take your comments seriously, otherwise they may lose their shirts. Judging from today’s market action, those who shorted TSTC/CHGS/LPIH already did.

  • http://www.timothysykes.com Anonymous

    None of my readers lose their shirts because we cut losses quickly…nor do we lose our shirts when there is false hope in junk like EGMI, MED, ZAGG…dont even try sticking up for PIPEs, if u are in this biz u know 99.9% are toxic deals, saying growth needs cash is a beginner mistake…

  • Anonymous

    I couldn’t disagree with your hypothesis more. Red Chip brings relatively unknown companies into the spotlight, and in many cases they help them list to major exchanges. In general, they help them get the exposure that they would otherwise not get. If you do your due diligence and pick out the gems with quality business plans, Red Chip stocks are gold mines waiting to happen….especially the ones that uplist to a major U.S. exchange. You’ve latched onto a losing strategy to short these stocks. This makes a better long watch list than a short list.

  • http://www.timothysykes.com Anonymous

    When I have the time, I’ll do a statistical analysis of how Red Chip featured companies do longterm…it’s gonna be ugly…especially if u take the data from stocks that have already surged

  • niggerlover

    timmy is retarded. this guy cant possibly be a profitable investor simply dismissing all these stocks without even looking at them. all cash strapped and money hungry? wtf LLEN doing on that list 500% growth ytd without using debt!

  • Anonymous

    Save yourself the analysis. Take a bunch of stocks after they’ve already surged 100% or more….after they’ve already uplisted and they are now somewhere between fairly priced or overbought….of course they are going to perform poorly. If you weren’t myopic to the short side, you could see that buying the underpriced gems BEFORE the runup would be a great way to make money on the long side. Serious cash. Uplisting is a bigtime moneymaker.

  • http://www.timothysykes.com Anonymous

    ah but u see thats where u’re wrong…i have the best track record around because I DO find all penny stocks guilty before proven innocent…the only way to think after u’ve been around long enough

  • http://www.timothysykes.com Anonymous

    yes jay, i like gimmes…ad no i wont buy the runups, as the data will likely show, the vast majority runups never happen, far more reliable to short into red chip’s work since red chip only seems to go for the uplisting then the runups are over

  • Anonymous

    Your loss. Lots of money already made….YUII, LLEN, SOKF, LPIH.

  • RC

    Red Chip Will Be In Touch.

  • http://www.timothysykes.com Anonymous

    RC, I look forward to it. you’ll notice I didn’t say anything negative about you guys, just that I think all your featured companies are potential shorts. But congrats on getting someone with an SEC past to headline your conference, very classy!

  • Anonymous

    You know I like you in general. Heck I even bought your book and I enjoyed it. I think it’s good to have somebody out there who shorts the heck out of those hyped penny stock scams out there.

    That said you seriously have to realize that you have no idea what you are talking about on the China stocks issue. To say these companies are shorts is beyond ignorant for me and if you do it publically it’s simply dumb as it will cost you lot’s of potential future members not even to speak about losing your face publically.

    You have no idea about the fundamental numbers of these companies otherwise you wouldn’t post such a crap Tim. I think it’s kinda sad because you know what you do in your “basic business” so I would suggest stay with your penny stock shorting unless you wanna look like a newbie to the outside world….

  • http://www.timothysykes.com Anonymous

    potential shorts…as long as they associate themselves with these kinds of figures, i will not look to buy them

  • RC

    Timothy Sykes and BullShip Press, LLC. (“Company”) is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company’s website, or in its publications, are made as of the date stated and are subject to change without notice.

    In other words, he does not have any idea what he is talking about and is only trying to sell some books and DVD;s on trading to line his own pockets.

    Maybe Charles Payne made a mistake in the past, maybe he fixed it and moved on. Didnt you do the same thing Timothy? Maybe it took several years for the management at Red Chip to get to the point that they are at right now, representing listed Nasdaq and NYSE stocks that have huge revenues and earnings. Maybe the management at Red Chip took years to build this into the growing and Highly reputable firm it is today.

    However Tim, if you want to point out potential shorts because Red Chip has a conference at the Nasdaq market site and the management of Red Chip Rings the Nasdaq closing bell and the next day CNBC has Red Chip on the air talking about a few companies from the conference, you might just want to do some research about the stocks before blindly telling your clients to short these stocks.

    Red Chip Companies is growing based upon Legitimate Client Investor Relations programs, companies with high earnings and low PE’s.

    Fact is the last few posts you have talked about Red Chip and shorting their client companies, if your investors would have shorted Red Chip clients stocks your investors would be at a very large loss right now as the stocks are up with huge gains based upon growing revenue and earnings.

    You turned 12k into 2 mil, then lost 700k, ok i get that, good job your still up a bunch. However I would imagine that you lost the 700k because of your lack of research and your overbearing arrogance. In the case of Red Chip Companies, your at another one of your Arrogant stages where you are not doing your research and your investors if listening to you are loosing a ton of money by taking your suggestions.

    If your going to tell someone to short a stock, you might want to do your research first. I can clearly see you are not researching and only throwing out a few names of companies that were at a conference at the Nasdaq market site.

    I suggest taking a look at the above list of stocks he, Timothy, says to short, do your own research and decide for yourselves. Do Not Take this DVD/Book sales mans word for it. You would be loosing a ton of money if you listened to him on the day this blog was posted.

  • http://www.timothysykes.com Anonymous

    zzzzz, i lost the 700k believing in penny stocks based on the same variables u at Red Chip value companies…that analysis is flawed…that is why i lost and now i am better, wiser and richer now that i short based on the same flawed research. your entire existence and flawed ideaology helps creates amazing shorts, thanks!

  • http://www.timothysykes.com Anonymous

    Ps if u guys had done your research, u’d know Charles Payne is still a penny stock promoter and his stocks still crash 50%+ intraday just like all other pump and dumps…but then again, you’re only a microcap “research” firm so this just goes to show what kind of research you’re capable of LOL

  • rc

    Your Just another looser trying to sell books and videos telling everyone how great you are when your program does not work so you decided to make money selling stuff rather than making money trading.

    I know I know your the greatest trader ever, you and Warren Buffet are best pals and you will have more money than him next week.

  • http://www.timothysykes.com Anonymous

    ahhh Rc, you’re showing your ignorance, thos esame books and DVDs you mock clearly state i am not even that great of a trader, but i have a system that is teachable and replicable…and u can see from daily trades like today shorting ABIO at 8 that my stuff DOES work and it is teachable and replicable…just not scalable…just like your business…do me a favor and learn to research before u attack me, u just make red chip look even worse than normal

  • http://www.timothysykes.com Anonymous

    shows what you know troll! did u learn?

  • http://twitter.com/rene6985 Rene Zaid

    Redchip is a good company, it made already its name when Tim was still in
    diapers. I missed whem they predicted that LED technology and flat
    TV will be the future. I missed stock like CREE and LG that they recommended, but lately they are giving company liek WEL and ZAGG
    that really don’t impact the market.

  • Martyn

    Those people defending Red Chip should really do their research. For one company on the list I have written to Red Chip pointing out the inaccuracies of their ‘research’ to the point where it it is blatant falsehood. Redchip’s response? Silence. How am I qualified to know that the ‘research report’ is extremely inaccurate, bordering on lies? I was part of the company they ‘researched’….