One of the benefits of watching the markets over an extended period of time is that everything old becomes new again. Bubbles spring up and get burst, promoters and talking heads tout stocks that become a flavor of the month before crashing, and different angles are used to try and grab the investing public's attention.
Back over 10 years ago a company called Warning Model Management started buzzing over news that they were going to be representing Paris Hilton, sending their stock on a wild ride. It was a classic penny stock ''Pump and Dump'' scheme in my opinion. Hilton was already represented at that time by the Ford Modeling agency, but that didn't matter as the stock for Warning Model Management went up over 1,000% with one individual reportedly pocketing over half a million dollars in profits: (NY POST STORY).
More recently sports drink maker Fuse Science caught fire in 2011 with news that Tiger Woods was putting Fuse Science ''on his bag''. He even did an interview about it that aired on CNBC:
Celebrity is a great thing, it can attract all kinds of novices to invest in a company as fans of the star buy in. Which brings me to RYU Apparel.
Last week on a social media site called Stockhouse, which is popular for Canadian listed companies, users started spamming the boards about RYU Apparel. One prolific user with the ID ''venturestockpicks'' went onto at least a dozen threads for different stocks with this message.
As noted before, the Paris Hilton news didn't lead to long term price appreciation for Warning Model Management, and notwithstanding Tiger's endorsement Fuse Science now trades for fractions of a single penny.
Will RYU Apparel be different? In my opinion, no.
If you check the filings for RYU at SEDAR you will see they have the usual ''Going Concern'' warning with respect to their ability to continue as a going concern. In reading over their filings you will see that the company has been securing financing by garnering cash from private placements of their shares.
Do note that my opinion is for the longer term. In the coming weeks perhaps RYU will spike higher. History certainly suggests that's possible. But I have to question how much pull the name Gwyneth Paltrow will have.
The actress is probably best known for the film Shakespeare In Love, which was made all the way back in the 90s. I'm old enough to remember it very well though, and I thought Ms Paltrow's performance was brilliant, I'm a fan. But not a big enough fan to invest in RYU.
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