Skins game getting hot

So ... Skins Inc. announces the hiring of a new CFO and the stock bumps up 15%?

The world of penny stocks never ceases to amaze, but SKNN.OB is compelling because of my small investment in Crocs. The latter Co has been bandied about by fans on message boards as a potential buyer of Skins. As footwear companies go, the two are in very different stages of growth. CROX is on fire and busy with acquisitions, sitting on major revenues and growth. Skins has yet to sell a shoe.

Yet, all the frustration of SKNN investors is melting away, yielding to optimism. The long-awaited World Shoe Association footwear conference is just a week away. I tend to believe that investors will be there to get their paws on the product (finally) and to send out the message. The victory flag will go right up.

I think that optimism has more to do with today's stock move than anything else. A bit similar to the move in CROX today. A huge day is a week away for Crocs, and the stock starts moving dramatically the week before, on a Monday.

I wrote a week or so ago that SKNN bottomed out at 76¢ in late May after investors lost patience and hope with another delay by the Co. It was the second such delay in less than a year. At today's closing price of $2.20, SKNN might seem a tad bit frothy; it's nearly tripled since that bottom!

Still, today's 15% gain came on the heaviest volume since July 12, and the short-term sellers were overwhelmed.

For speculative traders, is this a buy? What about potential longs? I wouldn't go deep with this stock until the Co can prove, as Crocs did last year, that its distribution channels were highly effective. I don't think it'll be another CROX. The style of the shoe is just not condusive to the masses, but it does have a very chic appeal, and probably was severely undervalued at below $1.

Any further run-up this week, though, would put shareholders-to-be in dangerous waters. A very small entry position might be worthwhile for those who can withstand the wild volatility yet to come. Otherwise, it's just entertainment with a sideline view.

Disclaimer: Pupule Paul has his toes in CROX, but has no position in SKNN.OB.