SKNN.OB

[AussieTrader]

What a great day for SKNN for sure. Congrats all who were in.

I am locking in some gains today and will sell 33% of my position. This is a slight deviation from my  STEPS exit rules as that calls for sales in blocks of 50%. My basis for selling is 1) this is the 3rd candle since the breakout point (per STEPS exit guide) 2) Yesterdays move was so powerful it demands some profit be put away. 3) Only 1/3rd because I expect SKNN has more in the tank and I can afford to hold through consolidation to try and catch that.

Remainder will be on a stop $2.05 on a close below or volume backed intraday penetration.

Good Trading

Update: Sold 1/3rd $2.32

[tokyopua]

What a great day for SKNN for sure. Congrats all who were in.

I am locking in some gains today and will sell 33% of my position. This is a slight deviation from my  STEPS exit rules as that calls for sales in blocks of 50%. My basis for selling is 1) this is the 3rd candle since the breakout point (per STEPS exit guide) 2) Yesterdays move was so powerful it demands some profit be put away. 3) Only 1/3rd because I expect SKNN has more in the tank and I can afford to hold through consolidation to try and catch that.

Remainder will be on a stop $2.05 on a close below or volume backed intraday penetration.

Good Trading

Update: Sold 1/3rd $2.32

Sold half myself, will look to add back for sure on consolidation!

[tokyopua]

I'll just illustrate the technical target here

...so now that $2.18 was made what?  Should we expect it to test that as support now?

I think SKNN is a bit ahead of itself right now and some of the moving averages need to catch up.  SKNN also broke out of any kind of channel I tried to draw for it.  Right now if it stays above the channel, that is at 2.16. 

Another possible support is 2.10, which is about half of the marubozu yesterday.  Another area for support could be $2.00 because it is psychological, and the 13 ema should catch up to that level by the time SKNN could drop that far.

If the current candle today were to close around 2.10 or below I would take that as close enough to a dark cloud cover that I think it could be the case that that support doesnt come in until the breakout zone is tested again.  But its looking stong so far at 2.32 again!

This is a great speculative stock, and I am thinking to just hold my last half for the long term regardless of what happens, but its important short term to realize they still have no revenue stream until they start selling.  As I mentioned before, this stock is like a shoewear equivalent of a biotech with a great drug in its pipeline, lol.   

[tokyopua]

Forget dark cloud cover from my post below, its trading at 2.43 now, we might see 3 white soldiers instead! 

[AussieTrader]

SKNN is following the STEPS pattern to perfection

Read about STEPS:
http://www.3stocksonfire.org/trading/index.php?topic=7595.0

[422fwhp]

Let's hope for a nice gap up so I can sell then

[422fwhp]

Out at $2.64  !  This may be the best timed trade I've ever made...thanks to ya'll.

Applauds again.

laterz...Jody

[Terliso]

Agreed it would have been nice to see the expected breakout.  As a further consolation though, the drop today occured on the lowest volume in all of November, so probably packs less of a punch.  Also, this stock just came up in Terliso's 3 magic line strategy filter, so this stock can now be a "3 magic lines STEPS" combination stock, lol!  Finally, 13 ema still racing up to provide us some additional support coincident with the trend line you drew in your charts.  Time will tell, but the overall picture still seems bullish.

The T3MLS & STEPS... what a combo!!...applaud all traders in this thread!

[AussieTrader]

Out at $2.64  !  This may be the best timed trade I've ever made...thanks to ya'll.

Applauds again.

laterz...Jody

Congrats Jody, to quote Col. John "Hannibal" Smith from the ATeam 'I love it when a plan comes together'

Will update my exit plan on my remaining 50% position over the weekend.

I have opened a new STEPS position in MVIS here is the thread http://www.3stocksonfire.org/trading/index.php?topic=4160.msg80229#msg80229

[shipman]

Nice work Aussie-beautiful.

[422fwhp]

Out at $2.64  !  This may be the best timed trade I've ever made...thanks to ya'll.

Wow...came back after lunch to see it up quite a bit    Oh well, profit is profit.

Thanks again...Jody

[AussieTrader]

Skins Footwear Named to I.D. Magazine's 'New + Notable' the Year's Sharpest Product List for 2006
PR Newswire - December 11, 2006 08:00

NEW YORK, Dec 11, 2006 /PRNewswire-FirstCall via COMTEX/ -- Skins, Inc. (OTC Bulletin Board: SKNN), developer of a revolutionary, patented two-part, interchangeable footwear structure, announced today that it was named to I.D. Magazine's "New + Notable - The Year's Sharpest Product List" in their December 2006 issue. Skins footwear was among the 75 pages of cutting-edge products to grace the much sought-after design magazine. Interested parties can visit http://www.skinsfootwear.com to view the press clipping.

I.D. Magazine included a picture of Skins unique footwear structure. The caption read: "Thinking you should never have to sacrifice comfort for style, SKINS FOOTWEAR founder Mark Klein invited the design firm Banfi Zambrelli, as well as Koby Levi and Studio Dror, to create a revolutionary two part system: The outside is a collapsible, interchangeable 'skin' that will be available in styles ranging from sneakers to stilettos, and the interior is an orthotic 'bone' that gives the shoe a familiar fit even as its look changes."

[tokyopua]

Unloaded 12.5% more at 2.94 for over a double (bought at 1.46).  Tried to sell 25% but it fell too fast and I only got a partial fill, might still get a chance later but I will be happy to hold the rest even if not, this stock has a lot of potential in 2007 

[AussieTrader]

I sold another block at $2.94 yesterday. Now I am left with 1/3rd of original position.
Now STEPS trade intention was short term explosive gain and that is sure what we got. Just thinking now whether to move the remainder onto a longer term hold approach or to stay true to the entry reasons and exit aggresively on a short term trendline or some such.
Yesterdays action was normal as far as I can see, now I expect some consolidation under $3 to set in. We may even see yesterdays high $3.05 become a new breakout entry point.

[David Randolph]

1. Introduction

First of all, congratulations to all of you in this great thread, fantastic execution and management of the trade ! AussieTrader has style

Second of all, I was so stupid in not paying attention to this thread (and Aussie sent me a PM on it), just because I was short on time and read "skin and bone", so I thought it was some biotech concept I wouldn't understand without a lot of due diligence.

But no, after all it is the most amazing and simple concept of footwear. I'm stupefied nobody thought of making this earlier.

Well, I'm going to apply my usual analysis template to SKNN, because not always a good concept means a good stock to invest.

2. Profile

Skins Inc. (SKNN) created and is continuing to develop an innovative two-part, interchangeable footwear structure consisting of outer collapsible "Skins" and an inner holistic orthopedic support section called the "Bone." The design allows consumers to purchase one inner section, the Bone, and numerous outer Skins, resulting in multiple style variations from the same pair of quality Bones, always with the same feel and fit no matter which Skin is being worn. Skins' objective is to create a new attire concept that allows and encourages consumers to frequently change their footwear, while experiencing equal comfort in all designs of shoes. This uniquely positions the Skins concept between footwear and apparel industries. For more information, visit http://www.skinsfootwear.com.

3. Technical Analysis
3.1. All History Chart



SKNN.OB started trading on the OTCBB in March 2006, after a merger with Logicom.

Volume picked up in November and the stock doubled in about a month.

3.2. Short Term Chart



What can I say, there's only one way to this stock, and that's up ! Yesterday's candlestick was bearish, so we can have a bit of consolidation over the short term. I can't wait to study the fundamentals !

(damn it, no fundamental data for SKNN on my "Fundamentals" service, I'll need to check it directly from the SEC filings. Not a problem)

4. Fundamental Analysis
4.1. Number of Shares Outstanding



Wow, I love this, not even one share sold over the last three quarters. The current market cap is 34,526,006*$2.7 = $93.22 M.

4.2. Liquidity



The company raised $2.52 M in March 20, 2006, through two private placements:

«Logicom, pursuant to the Share Exchange Agreement, effected two private placement transactions in which we sold a total of 3,000,000 units and raised an aggregate of $2,520,000.»

Since then it has been naturally spending the money, since it had $0 in revenues, as you can see on the declining working capital graph. Working capital in Q3 was already negative ($1.06 M), so I'm pretty sure SKNN is diluting shareholder value as speak.

It desperately needs money now, nevermind the perspectives.

4.3. Revenues

Revenues were $0 since inception in May 18, 2004.

4.4. Profits

The company lost ($3,539,481) since inception. Net loss in Q3 was ($677,099).

4.5. Recent News

You can read recent news here: SKNN summary

5. General Overview

SKNN is a new and very small company (when considering the assets on the balance sheet) with what seems to be a brilliant idea. That idea (which is patented) is currently valued by the market at $93.22 M.

They just signed a production agreement with Italy's Boemos:

Skins Footwear to be 'Made In Italy' by Preeminent Fashion Footwear Manufacturer Boemos

They say their product will hit US stores starting in January 2007.

I wish they had more colours, because I think the kids are the ones that probably will love the idea of changing their footwear colours the most.

So, considering the stock, here's how I see it: one needs to wait some more time. $93 M is a lot to pay for a concept, and also the company has negative working capital, so it may do a private placement or sell shares in the open market to pay for current expenses. Also, nobody knows how much will the product cost and how the revenue will be sliced between the retailers, the manufacturers and SKNN.

I feel I need more data, I need to see if the product starts selling well (there's the risk of being a flop, because it can be uncomfortable) and the specifics of the agreements. I don't mind paying a higher price for my shares, if I have more certainty.

For now I'm neutral on the stock, good luck to all holding