Why I Just Shorted Eden Bioscience Corp (EDEN): TheStreet.com’s Factually Inaccurate Pump And Dump!

As I mentioned in this post, this near 100% runup is entirely due to a laughable Thestreet.com article mentioning this failure of a company as a “below-the-radar company that produces Messenger, a highly effective and revolutionary agricultural product.”

I could easily rip the company apart for its $23,000 in revenue in their latest quarter down from $189,000 just a few quarters ago—wow, their product must be really great! Even funnier is their yearly results—revenue of $350k vs. $4 million a few years back. Or before this miraculous article, EDEN was a $3 million company that was forced to do a 1-3 reverse split just two months ago in order to stay listed on the Nasdaq

But I shorted 1,000 shares at $2.55–that’s all I could find, trust me, I wish I could borrow 50k–because I prefer to go to the heart of the matter, the fact that EDEN SOLD OFF THIS “REVOLUTIONARY” TECHNOLOGY AS IS DETAILED IN THEIR ANNUAL REPORT!

From that beautiful annual report, filed on March 28, 2008:

“On February 28, 2007, under the terms of the Asset Purchase Agreement, we sold our Harpin Protein Technology to PHC for $1,396,824 in cash, net of transaction costs incurred after January 1, 2007 totaling $103,176, a promissory note in the principal amount of $700,751 payable on December 31, 2007 and the assumption by PHC of certain of the liabilities relating to or arising out of our Harpin Protein Technology…”

That’s right, EDEN isn’t even in the home and garden business anymore, they’re just a licensee! Gotta quote some more of this fine work of literature:

“Harpin Protein Technology includes substantially all of our assets used in the creation of plant health technology incorporating harpin proteins and the manufacture of biopesticide, plant health and nutrient products utilizing the Harpin Protein Technology. These assets include all intellectual property, contracts (including our license agreement with the CRF and our office and manufacturing facility lease), equipment and inventory related to our worldwide agricultural and horticultural markets. “

LOLOLOLOLOLOLOLOLOLOLOL Once they read this blog post, TheStreet.com is gonna be damn embarassed and they should be!

Like Sri over at CNBC “mistaking” paid for penny stock promotion for useful research, this “reporter” should be fired immediately for he or she has sucked thousands of naive investors by not caring/knowing how to do a little research. Sooooooo many idiots on Wall Street, naive investors, pathetic journalists, welcome to why PennyStocking works.

Now watch this thing tank as I make everyone aware! I expect to cover my short waaaay under $2/share.

TIM Lesson: Financial journalism is a joke, people with s#@$ track records can actually get their useless thoughts read, everybody rushes to judgment, you can profit from all this

I’d like to thank my parents for believing in me, CYGT for helping me understand how pathetic these tiny companies are, CNBC/TheStreet.com for teaching me about the joke that is financial journalism and most of all the freedom-hating SEC, for without you guys turning a blind eye to blatant stock manipulation, there’d be fewer pump and dumps to short sell into…so thank you everybody!

UPDATE: TheStreet.com put out a little correction saying they “incorrectly described…we regret the error…” Too little too late guys, stop focusing on getting hits through so much damn useless content and focus on lesser better content. But since I know you won’t change, I just gotta say thank you once again for the easy profits!