As nearly everyone now knows and as detailed in my book , my hedge fund’s downfall came because of one position, Cygnus eTransactions Group, Inc. (Other OTC:CYGT.PK ), a provider of online ticketing solutions, a company’s technology with which I fell in love with and got my heart broken.
I initially put about 10% of my then $1.2 million hedge fu
nd in this stock, but the position grew when my confidence rose after they signed deals with Expedia, Harrahs, Hershey and AAA. Well, the Expedia and Harrahs deals bombed, the stock tanked to the 7 cent range, my hedge fund closed, people mocked me for being so stupid and here we are today with me announcing I’m going back to my $12k roots.
CYGT didn’t want to be left out of the publicity party today so they also issued a big PR, announcing a new CEO who was the former head
of ticketing at Disney and Six Flags. Yup, you read correctly – a big-time ticketing guy just became CEO of a 7 cent stock (of which me, my family, friends and not-so-happy hedge fund investors are still suck with, in total about 2 million shares, mostly restricted).
We’ll have to wait and see if this guy can turn this company around, but he’s only 39 years old, so I gotta believe he sees CYGT’s incredible technology as a career maker (as I did). So, let’s see how this plays out, it might take a while, but I have a feeling I now have a serious chance at vindication.
Disclosure: Timothy Sykes, his family, his friends, his hedge fund investors all have shares in CYGT.
Please note that due to factors including low market capitalization and/or insufficient public float, we consider this stock to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.
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