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Penny Stock Prophet Is An Unethical Promoter Who Only Picks Stocks He Gets Paid To Pick

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Judging by some recent emails, it’s come to my attention that several readers were under the impression PennyStockProphet.com was a real stock picker…sorry to burst your bubble, but he’s not, he’s just one of many sleaze bags who banks because people are too stupid.lazy to read his disclaimer/know how the penny stock gutter works!

PennyStocking Silver subscribers and TIMalert subscribers know I will NEVER take compensation to make a stock pick, and that’s why my disclaimer is clean…I only get paid by people who want to learn to trade penny stocks from my 4 newsletters and 10 instructional DVD packages…most of my picks come from exposing cretans like PSP because only the absolute worst companies ever get promoted–after all, why would anyone spend $ to promote a company to an email list when the money would do the underlying company far more good (hint: because the product any promoted company is the stock, not the company itself)

PennyStockProphet’s disclaimer on the other hand is not clean at all (although I’m sure he’s checked with his lawyers multiple times and it’s “legal”…the funny this is he makes it very obvious that his interests are not aligned with his readers/subscribers:

Hidden amongst tons of legal jargon meant to dissuade people from reading it all:

On occasion PSP receives compensation from a third party in relation to the profiled companies in the newsletters and e-mail alerts sent to our members. In such a case PSP will state at the bottom of e-mail alert and this disclaimer the exact form and amount of compensation. PSPS, its affiliates, associates, relatives and anyone associated with PSP in any manner reserves the right to either BUY or SELL shares in the profiled company’s stock, either BEFORE the date of the profile, DURING the date of the profile or at ANY time after the date of the profile. We may have an inherent conflict of interest by sending the newsletter at the same time we may own stock in the same company or even have been paid compensation at the time of the promotion. PSP reserves the right to sell shares at anytime, even during the time period in which we are profiling a company.

Do you think PSP does any independent research? LOL, of course not! every stock promoter I’ve ever talked with says they do research, but in reality, the only research they do is to make sure the company or the public-relations firm’s checks clear and the stock certificates of the shares they receive as compensation are valid.

See PSP admit his research comes from the people who pay him to email blast out to his “newsletter”

All information concerning the profiled companies is received directly from the companies, the company’s investor relation or public relations firms and/or outside research conducted by PSP.

Sure, sure, he’s got tons of marketing literature and email autoresponders to make you think he’s real, but read some PennyStockProphet reviews on Investimonials:

Why didn’t the long sales pitch put me off?

Normally when I see a long sales pitch I run for the hills. PSP (as they call themselves) make it look as if you can make over a million in a month. However once I signed up for the free newsletter (so they can spam you with adverts for the paid service) I noticed that they are getting paid to promote these stocks and this is what artificially makes the price go up. I am sure that the reviews on their website are true as some of the smart people get out quick after making some quick cash, while the rest sadly loose their money, as in the end this is just a disguised ponzi scheme that is not particularly well done. If you even look at there affiliate scheme you will notice that they claim earnings of many thousands while they contradict themselves elsewhere saying that they only have 500 members to keep the information useful, and stop any harm on the companies they promote.

Highly speculative. Not worth the risk.

In the search for the Holy Grail I tried this paid service when I first started trading. Typical rookie mistake looking for the fast track to millions. I tracked his picks for a while before actually shadowing him. I was surprised at first to see that some of his picks actually sky rocketed – that was before I understood the nature of pump and dumps.

My recommendation – stay away. If you won’t listen to me at least take this advice: if you are going to shadow trade this guy, get in quick and early, sell the minute you can turn a profit and DO NOT CHASE THESE STOCKS. Most of the time his picks will jump at the market open, but that is it. They will fade the rest of the day aonce his followers start the selloff. This is a scalper’s game. Take what you can get, and get the hell out because if you don’t you will lose a lot of money. Almost every pick this guy has made collapses within a few days.

Posted in Penny Stock Scandals, Stock Promoters

  • Benjamin Cahn

    for some reason i remember that you used to tout PSP as being legit and worth following? granted this was a very old post.

  • Jchen888888

    TIM!!! What do you think about this NWTT stock? iHubbers are pumping the hell out of it! I find it surious that the company just announced a merger with some company, but the company they merged with has no contact info at all!!!

    Please let me know what you think about this, seems kinda odd too me, ut maybe not? It’s sub-penny?!

  • http://www.test.timothysykes.com/news/16414-the-best-penny-stocks-you-should-know-about-now/ The Best Penny Stocks You Should Know About Now

    [...] Yup, Penny Stock Prophet is a paid / conflicted promoter [...]

  • Stevebaldwin

    Tim an email I got from PSP today, ha!!!!

    PSP Free Members,
    I’m enormously frustrated with our pick today. Obviously, I never expected CPSV to drop by 22% in a single day.
    This is not the kind of result I was expecting, nor the results I want for my members (or free subscribers.) This was absolutely a bad call by me, and I will take full responsibility.

    CPSV started off the day well, but then collapsed under selling pressure, and lost support around $0.30, and ultimately closed the day down at $0.24.
    I really did like CPSV for us, so this is hugely disappointing. I thought it was a perfect play for us at this time, and it didn’t pan out the way I hoped.
    I want you to know that I am going to strive to make this up to all PSP members.
    I’m going to try and find us a better opportunity that won’t experience such erratic trading. I’ll keep my eye out for a chart with a stronger trading history (less risky) and that looks oversold and ready for a bounce.
    Once again, I apologize, and will do everything I can to make this up to you.
    -James

  • http://www.test.timothysykes.com/2011/01/is-tim-sykes-a-penny-stock-promoter/ Is Tim Sykes A Penny Stock Promoter?

    [...] Silver subscribers and TIMalert subscribers know I NEVER take a dime from penny stocks like Penny Stock Prophet nor do I allow them to pay my marketing fees or get paid sometimes while making real picks other [...]

  • Moneyiscoming2me

    The federal government has specific information that has to be disclosed by companies that deal with third party companies and get paid by them.  I don’t think the governments intent was to discredit the company and how it operates.  It was meant to let the buyer know what is happening.  You’ll find a similar disclaimer on any affiliate program or distributor.  The majority of business distribute other people’s products, physical and intellectual.

  • Anonymous

    Penny Stock Prophet is a scam pump / dump operation, in spite of he and his pals spamming the search engines with glowing reports of their success. Just look at the one year chart of any stock James Connely has ever “recommended”. Can you say flatline? I wonder why the government doesn’t arrest this guy, or at least shut him down. Take a look at CPSV, Spencer Pharmaceutical, SPPH, NWTT…

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