Steady News and Company Performance Leads to Higher Stock Prices...

By: Tom Allinder
April 28, 2008

I thought for this week's blog, I am going to get more "Company specific" and discuss points using stocks of Companies that are trading out there right now. In my email newsletter on Thursday of last week, I "added" SKNY to the list. The chart looked really good to me in spite of the fact that the stock had moved up from the .02-.03 level in early March of this year. After its initial advance, the stock was now making what I call a "stair-step" advance and on last Thursday was emerging off of a "step".

Sure enough, on Friday the stock gapped slightly and broke through the resistance at .23 or so (the previous high) and closed at .265.



Why is SKNY advancing? Well, normally, I only look at charts but in this case, I wanted to see what was behind the stock. Some of the recent news releases from SKNY included:

"Skinny Nutritional Corp. Launches All New Next-Generation Zero-Calorie, Skinny Waters(R)"
"Former President and COO of Coca-Cola Philadelphia Teams Up with Skinny Nutritional Corp."
"Celebrities Seen Swigging Skinny Water at the 50th Annual GRAMMY(R) Awards"

Now, these seem like pretty exciting headlines to me, so this may explain partly, at least why SKNY is moving up. Another reason is that technically, the stock has remained strong since in started the initial advance in early March of this year... But, I do think the foundation of the whole move has been in the top quality news releases that the Company has put out. Does this sound like a familiar theme to you?

I have been beating the news drum for months now. The only way that a Company can advance in the market place is through quality news releases on a regular basis. You have to have a good company with real products, real services or a really good story for this to happen.

I am also interested to see how OriginOil, Inc., (OTCBB: OOIL) is going to do. This Company announced on Friday that they had gone public. For all practical purposes OOIL began trading on Friday.

OOIL has an interesting story...

OOIL states on their website that they are developing a breakthrough technology that will transform algae, the most promising source of renewable oil, into a true competitor to petroleum. Much of the world's oil and gas is made up of ancient algae deposits. I am talking to the CEO, Riggs Eckelberry this week to find out what their Company is up to and what is behind the scenes at OriginOil, Inc. See the website at www.originoil.com for more info. I bought a small position on Friday (a whopping 5500 shares) and will see what happens in the future. I also will feature as much important information on the Company as I can after talking to Mr. Eckelberry...

Comments:
Disclaimer: User Comments do not reflect the views of US Equity News, and we are not responsible for the content of users' comments. We also reserve the right to edit or delete comments to our discretion.

---