Unlike Options Media Group Holdings, Inc. (OPMG) and Shaquille O’Neal who respond with cease & desist orders (see my response to Shaq, next week I’ll post my OPMG letter) to things they don’t like posted about them on the internet, I respond publicly because I don’t need lawyers to point out lies…this is why I am 100% transparent, not just in my trading but business too.
It’s the right way to be.
The difference being that when I write about Shaq and OPMG, I use the companies’ own SEC filings as my sources so if they want to say I’m lying, that means they are lying about themselves.
As I pointed out in my confessions post yesterday, I have little to no time to deal with positive or negative things posted about me, but because I know promoters looking to discredit me with try to spread these lies, it’s important that I confront these scumbags right now.
The first post filled with absolute lies is this post from a promoter whose disclaimer reads:
Pennystockalerts.com is often compensated to conduct investor relations marketing for the companies alerted and profiled. That is an absolute conflict of interest into our ability to be unbiased. Therefore any materials and information on this website or contained in emails sent from this site are purely commercial advertisements. The primary business of Pennystockalerts.com is to receive financial compensation for issuing alerts of profiled companies. Pennystockalerts.com is hired by companies or third parties to increase investor awareness.
Download a PDF version of this post.
Strike #1: I am ALWAYS unbiased as I only get paid by subscribers of my 4, NEVER by shareholders or insiders of my picks because that conflict of interest is the problem with penny stock promotion…this guy’s disclaimer is EXTREMELY relevant when writing about me because I expose his unethical business model so he likely has a massive chip on his shoulder…and being the promoter he is, he likes twisting stories around for his own benefit.
Strike #2, all the lies:
What’s the innocent angel of the penny stock industry promising this time? Give him a little time, patience, and money. He’ll give you…over $3 million? Unfortunately, Tim has really laid the BS on thick this time by charging about $2,000 for a crappy program that claims to make you millions of dollars in a few years.
in fact if you watch the video for this newsletter I specifically state this is how I’ve done in the past, not how I expect anyone else to do…the truth is most of you are too lazy and ignorant to make my strategy work for you perfectly. The good news is my few million are nowhere near best case scenario — as subscribers of my 4 can see I’m not a great trader at all so I wouldn’t be surprised if some diligent person actually does repeat my feat or does even better.is $2,000 per year (roughly $160/month) but I NEVER claim to make anyone millions…
As you can see from this chart of my HERE
And that’s just one of my trading accounts, so yes I haven’t turned thousands into millions the past few years (remember I’m mainly a short seller and it’s been a bull market), but this basic online discount broker account has grown nearly 20x, which is remarkable especially given how many projects I have and the fact that it took me 9 months to get over the $25,000 hump due to the ridiculous Pattern Day Trading Rule
When I searched the term “penny stock”, one of the most frequently searched and expensive keywords in the entire industry to advertise, Tim Syke’s site stocksscamalert.com is the very top listed sponsored result! He pays every time someone clicks on that. I’m in that position very often myself for the exact same keyword. I will tell you one thing, it is VERY expensive to advertise like that.
Actually I don’t pay anything,is not owned by me, I am just the guru, the promoter either knows this or purposely blocks it out and no, our advertising budget is not great, especially compared to stock promoters…the company that manages this newsletter just has better SEO experts.
Lie #3: This guy is such a crock. Here is almost the first thing he says in his video: I’ve also been ranked the number one trader out of 50,000-plus traders on www.Covestor.com the past three years in a row by trading penny stocks exclusively. That sounded too good to be true, but with the percentage gains Tim had promised I figured it could very well be true. It’s not. Take a look at the information I found on www.Covestor.com, a service where you can pay to have your brokerage account automatically mirror the trades that the investor your following executes. They have access to a brokerage account you setup specifically for this purpose, which has to be setup with Interactive Brokers, yet another service Timothy Sykes is often heard peddling. This guy is like the Paul Newman of penny stocks, he’ll put his name on anything. First of all Tim is definitely NOT ranked #1 right now. He is currently #6, NOT #1. His fund is called Contra Hype, and has returned 14.22% over the last 3 months.
Again this promoter is either too stupid or conniving to note that he’s only looking at the rankings for Covestor’s auto-trading…which time and again I’ve said doesn’t work well with my strategy because it’s just linked to one brokerage account atand the shares go fast, first-come, first-servce hence why it’s far better for me to teach this strategy to others than for lots of people to mirror what I do. When you call me a crock, perhaps you should do some actual research before you make such ignorant assumptions. See my account for a more accurate impression of what my strategy is capable of.
As I wrote in my comprehensive broker post, I now use nearly half a dozen brokers, if you want to judge how my accounts do, consider all the accounts which is where I get my advertised performance numbers from.
If you look up Covestor’s top personal track records, which are now out of 60,000+ traders, and this is linked to my account which has now gone from $12k to roughly $193k in 3.5 years, you can clearly see I am #1 and have been for the past 4 years:
Here is the shocking part. Tim founded this account so people could pay a fee to mirror his personal penny stock trading activities. Sounds an awful lot like the premise to. IF he’s really making the returns he brags about and claims you will make as well, then $2,000 is an amazing bargain for returns in the 50-200% range annually.
Oh my God this guy is lying through his teeth, my auto-trading doesn’t work well because it’s a short-biased strategy requiring manual borrowing of shares to short ahead of time….is longer term and long-biased, NOWHERE near similar, in fact quite opposite.
Covestor.com promotes mirroring Tim Sykes account pretty heavily, so it seems likely there are a lot of followers who execute his trades. What did THEY make? Over the same time period they made a total of…1.25%. Yes, you read that right. They made one and one quarter percent. Tim makes about 30%. The S&P 500 make about 30%, and anyone unfortunate to get mixed up with the ultimate scumbag made 1.25%. How come that isn’t in your little presentation, Tim
Congrats, you’ve proved what I’ve said for years now, Covestor’s auto-trading sucks with my strategy…and no they don’t promote it heavily nor do I until they work out all the kinks.
Lie #5: Tim Sykes IS a Penny Stock Promoter What shocked me is I received an email aboutfrom what Tim hates more than anything, a penny stock promoter. I actually like the promoter who got paid to advertise Tim’s crap, but why is a man whose claim to fame is the penny stock guy who hates promoters actually partnering up with those promoters…and even putting money in their pockets?! If I truly hated people who did something, I certainly wouldn’t be partnering up with them…and even more certainly, I would NOT be putting money in their pockets by paying them to advertise my service.
A stock promoter gets compensated to advertise a stock so the insiders can pump and dump and usually trades against their subscribers because they like making extra $ too. As I’ve stated, I do not get compensated on my picks and I NEVER trade against my subscribers (ie. if I put out a buy alert, I’m buying the stock, not selling or shorting it)
As for my working with stock promoters, hell yes! They have great email lists full of people who know nothing about penny stocks and I’m proud to be encouraging them to promote real products like mine instead of the usual pump & dump schemes…ANYONE can become an affiliate of mine, just signup here…it’s not just good business to use the stock promoters to help educate people the right way for once, it’s GREAT business….using a stock promoter’s list to find customers does not make me a stock promoter…I still will NEVER take compensation form insiders for picks, that conflict of interest is why stock promotion is so unethical/the kiss of death for these kinds of stocks.
Strike #3: The guy photoshopped one of my box ads and used his name instead of mine…he’s so unoriginal/poor, he can’t even come with his own ads!
Long story short, yes I’ve had amazing returns in the past and yes I think I will have them in the future, but most importantly because I see just how poorly I play most of these stocks, I know you can do a TON better…one of my PRO subscribers is up $50,000+ now in just a few months and I have countless other testimonials…I literally have thousands of people each day asking for personal attention and coaching so if you’re not sure about me, fine, go elsewhere…do let me know when you find another trading coach with such a track record and so many educational materials so you can learn their entire strategy, I’d love to see that happen.
For now, you have 2 options, you can either trade blind and hope to be lucky or study your ass off with someone willing to teach you for very cheap prices compared to what these lessons will cost you if you learn them the hard way…like I did for years. Your choice 🙂 And you also have the choice of what newsletter:is longer term, long biased… and are short-term short-biased, don’t let a penny stock promoter’s lies confuse you.
Another post I have great issues with is entitled “Has Timothy Sykes Become What He Hates?” whose author then proceeded to tweet it to my few haters, likely in an attempt to get retweets from them to blow up the issue…which is just sad.
Lie #6: If you have seen any of Tim’s instructional DVD series, you may have noticed his hatred toward penny promoters
Actually I NEED promoters I don’t hate them…there is a difference in that I teach you dumb suckers out there to understand what a promoter is, but if you want profit opportunities, you shouldn’t hate them, you should thank them for their unethical existence….I understand why the author of this article confused but it’s an important point.
Lie #7: Perhaps I am incorrect, but there seems to be a resemblance between my description of the alerts by Tim Sykes and the alerts from penny promoters.
Yes you are incorrect, promoters send out massive email campaigns to millions of people and coordinate efforts with market makers and company insiders to release news in order to get stock prices up to make their masters happy because that’s what they are paid to do…I simply send out my trades, alerts and research…I have roughly 1,300 subscribers, 1/3 of whom even open their emails. I don’t want to influence stocks I want my subscribers to learn why I’m making a trade…and if I teach correctly, many of my subscribers can anticipate my trades because it’s the same damn pattern over and over.
Lie #8: Some in thecommunity have blamed the recent decline of $TBBC on Tim’s sale of the stock. Though this cannot be proven with certainty as we do not know what would have happened if he did not sell, it would be agreed by most that some portion of the decline was a result of his sale.
I sold BRAINY BRANDS CO INC (TBBC) at $1.60ish and it was already dropping fast before I could even get executed so my exit prices are 1.62, 1.60, 1.59 and 1.57…this all happened BEFORE I even got executed let alone sent out any sell alert…within 10-20 minutes of my sell alert TBBC had fallen to the low 1.50s, roughly 5 cents/share from where my last execution took place and the “community” blamed me for the drop…people should blame themselves for not getting out sooner when it became clear the big rumored mailing over the weekend had not been sent out…1 day later in the 1.30s, my sell looked pretty good…yesterday when the stock touched $1/share my sell looked EXCELLENT…am I to blame for the fading volume when I sold (if I really do influence stocks, shouldn’t there have been a volume spike when I sold rather than roughly 1/2 the previous day’s volume) and this now 30%+ drop?…also the past 2 days had much greater selling volume on their morning panics than when I sold, why is that?
Long story short, penny stocks are volatile and all you can do is learn how to trade that volatility…unlike stock promoters I have nearly 300 video lessons forsubscribers in addition to 13 DVDs, all of which teach these patterns. I have not nor will I ever become a promoter who gets compensated to pump and dump stocks so I will never become “what I hate”.
I’ll probly have to get into lowly hypothetical trading eventually as my subscriber-base grows, but right now the volume on the stocks I trade are high enough for me to trade without influencing prices (for the record TBBC jumped an amazing 2 cents/share when I bought, LEXG was right around there too…LEXG later rose $9+/share making my 2 cents/share quite inconsequential and can also be written off given that I bought both due to technical breakouts and we don’t know how many other traders buy at these same key inflection points)
The good news is that perhaps thanks to ignorant and intentionally misleading posts like these, I might never have to worry about my subscriber base growing that big 🙂