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Lenny Dykstra Files Bankruptcy, Exemplifies Penny Stocks

Posted by Timothy Sykes on Thu 9th of Jul, 2009 08:15:07 AM

Oh yes, it’s finally true as you can see in THIS article:

Former major league center fielder and hustling enthusiast Lenny Dykstra has filed for Chapter 11 bankruptcy.

The filing, which was done on July 7, claims that Dykstra has no more than $50,000 in assets and between $10 and $50 million worth of liabilities.

I’m not a mathematician, but that doesn’t sound like a good combination.

Surprise, surprise–Remember when I wrote about Lenny HERE?

Or HERE?

I bring Lenny up for a third time so that you understand how crappy penny stocks are…because even though 99% of penny stocks similarly file bankruptcy, 100% of penny stocks similarly DENY DENY DENY that there’s anything wrong, just like Dykstra has for the past few months.

The lessons here: never trust people or companies with skeletons in their closet. They will lie to you. They will cheat you. They will do things you wouldn’t believe and you can’t be bitter…that’s just life.

Let’s take it a step further–if you sell instructional DVDs on ANYTHING, or write a premium newsletter on ANYTHING and yet you refuse to share your track record/credentials/don’t have tons of daily testimonials, you’re suspicious as hell and since I don’t have time to do research on all those who are suspicious, I’ll just assume you’re a fraud/have skeletons in your closet just like Lenny Dykstra and other bankrupt penny stocks.

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  • wallee
    The "big guys" make about as much money just sitting on their asses collecting the 2% management fee.
  • Nick
    Tim,

    As much as I think you are a bit on the cocky side, I respect your transparency greatly. You are a great example of a trader who sticks to what he knows, trades patterns to a T, and provides detailed information on his own performance to provide potential clients with a clear understanding of what is what.

    You may find this to be a stupid question, but I feel its worth asking: say you grew your (previous) hedge fund to 100MM, what effect would that have on your potential to move prices in these pump and dump schemes? Obviously economies of scale come into play, but don't you think you would have as much power as the pump and dumps to manipulate the markets(via less overall action in this niche)? Do you consider that unethical? I know it happens all the time, but do you feel its ok for anyone to do this? Lastly, what is the biggest microcap/small cap hedge fund out there? The only reason I ask is because you are very profitable and I don't understand why if anyone can pick-up your DVD's and do this, the big guys don't as well.

    Thanks!
  • Tim, it's all about PYMWYMI ... Put Your Money Where Your Mouth Is ... and that's what you continue to do.

    The Greek
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