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

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.

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.

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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