2 Simple Ways To Tell If A Stock Stinks - Timothy Sykes

2 Simple Ways To Tell If A Stock Stinks

2 Simple Ways To Tell If A Stock StinksLearn from these free video lessons on my best trade in years

As PennyStocking Silver subscribers and TIMalert subscribers know I’ve been on quite a tear lately, up nearly $70,000 in trading profits in the first month or so in 2011 (I don’t say it to be an ass or to brag, I say it because as a trader, your profits are your batting average and far too many “gurus” don’t tell you their batting average because they suck)

One of my less memorable but still successful trades was earning just over $1,500 shorting Onstream Media Corp (ONSM), which is a company that actually works with penny stock promoters. (the stock is now down 35%+ since my short although I covered well on a small position)

The other was even less memorable when I shorted the Tobin Smith hyped up piece of garbage China Tel Group, Inc (CHTL) where I made a measly $600 shorting at 40 cents/share but covering faaaar too soon (the stock is now down 50%+ in 2 weeks)…but at least I wrote a kick ass blog post outlining how Tobin got the stock up (temporarily)

Now these 2 stocks are irrelevant — and probably bankrupt — in the long run, but they exemplify the blog post title.

First, look at their terrible 1-year charts:

bad penny stock

bad penny stock

terrible penny stock

terrible penny stock

I love short selling every single spike as we see the longterm trend is solidly in place.

Download a PDF version of this post.

Now I already wrote about why CHTL was up…for a few days…and this coming week I’ll be outlining how Tobin Smith gets paid big bucks for his other penny stock promotions, but what’s a sign ONSM stinks?

Easy, look at their most recent and typically ugly earnings statement, released at the SINGLE WORST TIME SLOT POSSIBLE, Friday night at 9:39pm EST when NO journalists are working to cover any stories and no shareholder can sell.

What is ONSM trying to hide exactly? Their earnings of course! Revenue is a dud:

Total revenues were approximately $16.7 million for the fiscal year ended September 30, 2010 (FY10), a decrease of approximately $233,000, or 1.4%, from fiscal 2009

Losses are nearly half the revenue!

Consolidated net loss for fiscal 2010 decreased 21% to approximately $9.3 million, or $1.20 loss per share, compared to a net loss of approximately $11.8 million, or $1.63 loss per share, in fiscal 2009

Next thing you know Tobin Smith will be propping up ONSM…someone’s gotta pay for all those tanning sessions! šŸ™‚

Posted in Basics, Short Selling Penny Stocks

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3 comments

Timothy Sykes

Hey Everyone,

As many of you already know I grew up in a middle class family and didn't have many luxuries. But through trading I was able to change my circumstances --not just for me -- but for my parents as well. I now want to help you and thousands of other people from all around the world achieve similar results!

Which is why I've launched my millionaire challenge. Iā€™m extremely determined to create a millionaire trader out of one my students and hopefully it will be you.

So when you get a chance make sure you check it out.

PS: Don't forget to check out my free Penny Stock Guide, it will teach you everything you need to know about trading. :)

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