The Dean Agrees With Timothy Sykes About The Hemispherx Biopharma (HEB) Carcass
June 8th, 2009 at 4:23 am Posted by The Dean
The most popular blog entry circulating biotech message boards right now is Timothy Sykes and his 35% gain in one day by shorting Hemispherx Biopharma (HEB). His original HEB blog post has a record 321 responses from upset HEB shareholders who have fallen deeply in love with their HEB stock (No No #1 Never Fall In Love With A Stock).
I do subscribe to Tim’s philosophy of shorting penny stocks that have made substantial short-term gains and IMO there is still some meat left on the bones for potential HEB shorts. Everybody knows Timothy Sykes is one of the most outspoken men on Wall Street and he has this to say (among other things) about HEB:
TIMalert subscribers know I think the guys running HEB are scumbags–they’ve done 2 financings at massive discounts to the market price (showing no regard to their shareholders because they KNOW the shareholders are nitwits so screwed they deserve to be!) in the past few weeks by taking advantage of their pumped up stock price based on PRs detailing YEARS OLD DRUG DATA.
Unlike Tim, I’ll be completely agnostic w/ HEB yet I still agree with Tim 100% that the play with HEB is to the short side. HEB has surged +340% during the past month and finally took a dive on Friday 6/4/09 finishing down 28% on a chop-job-piece by Adam Feurstein @ TheStreet.com. Just take a step back and look at the 90-day chart below to see if you notice any changes in the direction of the trend.
There have got to be thousands of Hemispherx shareholders losing sleep right now over their HEB shares and its only a matter of time before the profit-takers overwhelm any buyers of HEB stock. Now i’ve been wrong plenty of times before and I am not inferring that HEB is a sure thing to crash below $2. What I am saying, however, is that probability is on my side that HEB will continue trending downward if past performance of speculative stocks is any indication of future results.
Key Takeways:
1. So many HEB shareholders incessant bashing of Timothy Sykes tells me one thing- they love their HEB shares way too much. NEVER FALL IN LOVE WITH A STOCK.
2. You need to know the importance of when to sell because you haven’t made a dime until you lock in profits.
3. The controversial strategies taught by Timothy Sykes are incredibly rational and the man deserves a lot more credit than people give him.
Tim Sykes once was, still is and always will be a con. WS cast him out,
so he went to Direct Marketing as different vehicle to spew his crap.
It may not be what he does, but how he does it. Seen this before with
a con first hand. These guys test legalities and the law. Usually they
end up getting caught. In this case, it probably won’t be for stock
manipulation, but rather for mail fraud and tax evasion. He’s arrogant
and thinks he can’t be touched…most of us will be here when he slips and
falls. This guy is obsessed with greed and doesn’t care how he makes his
money. As far as giving him credit or his credibility…he has none.
Tim Sykes actually runs a very profitable AND educational business. He sells very informational DVDs and I can attest for the quality of each DVDs content. On top of that, he made $80k last month
But are you sure Tim is right this time? If HEB gets FDA approval, stock will skyrocket. Already Japaneese are considering it for flu vaccine. That news is expected any time. If they get approval, TIM and Adam F both are going to loose their credibility and may be their jobs very soon. This time they went too far. May be you should check all the facts before saying Tim is right.