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Wednesday, June 1, 2011

Has Timothy Sykes Become What He Hates?

For those who do not know of Timothy Sykes, he is a well known penny stock trader who has verified gains close to 2 million dollars. This track record gained him a following of traders that respect his stock picks, some even paying 49.95 monthly for his stock alerts. His followers are of course advised that these picks are not to be used to trade on, and are for learning purposes only. However, it seems that his alerts do tend to be purchased by large numbers of his followers. This can be seen by a large volume and price spike that followed the alert of $LEXG and more recently $TBBC.

If you have seen any of Tim's instructional DVD series, you may have noticed his hatred toward penny promoters. These promoters send out stock alerts to their email lists promoting the purchase of stocks they are compensated for. Those who receive these emails may buy the stock hoping to gain from them. These alerts of course manipulate the stock by creating large increases in volume and often a spike in share price.

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. It could be argued however, that the penny promoters know that they are influencing the stock price. A possibility is that the influence on the stock from one of Tim's alerts is just accidental. It may just be a resulting from the volume of followers Sykes has acquired over the years. However, I would not agree that he does not know of this effect. In one of Tim's DVD programs he discusses Jim Cramer's effect on stock prices and mentions that he may some day have a similar effect. For this reason I would like to think that he is not unaware of the effect on the stocks he alerts.

Perhaps Tim has his followers best interests in mind and that is the difference between him and a penny promoter. I have no statistic on the profitability of those who follow his alerts, but I can only assume that some of them make money. However, I would expect those who were most profitable following his alerts to be the ones first to purchase, as I would expect for a penny promotion campaign. (I am of course not considering those that use the alerts for education only and make their own picks.)

The volume increase caused by the alerts also has the reverse effect. When Sykes sells his shares of a company, those who purchased on his alert will likely sell when he does too. Thus, instead of a price spike, a sharp price decline results. Some in the Twitter community 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.

Even if Tim is looking out for his subscribers interests, what would surely set him apart from a promoter would be looking out for the good of the trading community as a whole. I would suggest that stock manipulation, whether for the good of your subscribers or not, is still manipulation, and poor practice in the investment community.

27 comments:

  1. Nice assumptions but in reality there rent enough shares to short to influence the price downward and when I buy, its liquid stocks like TBBC which rose an astound 1 cent/share in the first 15 minutes after my buy...eventually posts like this will force me into hypothetical trading but subscribers will do as they please...the key is to learn to adapt to any kind of influences on a stock but be warned that i trade based on reliable patterns so betting against me and u'll see exactly how well planned my strategy is :)

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  3. LOL i LOVE how traders blame me for TBBC's drop...guys i bought on the basis of a big mailer coming out over the weekend, rumors were all over the internet...no big mailer meant i got out ASAP...the big drop didnt come until 24 hours hours after i was gone, none my true subscribers got burnt, only dumbass speculators who deserve to lose...you should blame yourselves if you held, for u havent learned my trading lessons and now u see why my business is so good...your ignorance EXEMPLIFIES the kind of opportunity i have, thanks!

    I'll keep detailing every last bit of my strategy and all my trades openly, u guys continue ignoring my lessons, we'll see how we do, somehow i dont have to guess :)

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  4. And PS if u hate me, then just ignore me...pretty simple...I encourage more people to ignore me...not sure what u expect me to do, i'm not gonna give up my successful/proven strategy or my proven teaching, u are free to react however u want you piece of crap ingrates

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  7. lol, lexg was 3.5 million penny pump, it would have gone up if sykes took a shit on the ticker symbol in a youtube video he trolled all over the internet. i do not care about TS, i was reading this for fun, but this is pure shit, get real! THIS AUTHOR IS A HACK!

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  8. Your a business like any other Timothy. You encourage people to do their own DD, call them morons if they don't manipulate things like you do. This is here for people doing their own DD. All of a sudden you don't like it, instead you just ask people to ignore you. You are expecting them to pay almost $2000 for your crap DVDs, yet you don't think it fair that they research what they might be getting.

    You like to feel like the big man handing out your own misinformation but you can't handle it when the truth starts coming out about you.

    All I can say is "about time".

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  9. right on, anonymous. and great article. notice how Tim only attacks you on the points you make about TBBC. his arguments are so flawed, and it is SO endlessly frustrating watching him troll around the internet insulting everyone and touting himself and his system as being the best, most effective out there. i posted this comment on his site, but since i think it will be erased (sykes sure is transparent!).

    I actually applied for Sykes' trading challenge a few months back. I'm glad I didn't pay to do it.

    That guy really needs to grow up.

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  10. i do not understand why it has taken this long for so many people to realize what a lying, manipulating, far stretch from the truth Tim Sykes is. He will be so quick to call you out and call you every name in the book (like a little 5 year old seriously) if he doesn't agree with you. And now that EVERYONE is catching on finally to all his BS he just "wishes" everyone that doesnt like him would just go away and leave him alone. i cannot tell you how many times i wish Tim would go away but Nope he would keep showing up to call people names and act like a baby throwing a tantrum. Timothy "Baby" Sykes, it really is your turn to just go away. Instead of your $2000 waste of money video you should be selling videos titled "how to lose friends and become a bad influence to people" because that is truly the only thing you are an expert at bud.

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  12. I ask that nobody make false accusations in this comments section.

    Timothy Sykes has left a new comment on your post "Has Timothy Sykes Become What He Hates?":

    Whoever's blog this is needs to clean up your comments before I sue your ass for these lies.

    1.) Penny Stock Millionaire does have a 90-day money back guarantee and the HOSt COMPANY which is not mine, Wealth Insider Alliance does honor them...the return rate is very low given the amount of work, videos and research I put in.

    2.) I have NEVER shorted OPMG...I laid out my research days before I BOUGHT the breakout, just as I said I would...promoters and bagholders have problems with the fact that I exposed so many red flags but cant understand why unless I was a short

    You ingrates really make me want to become a promoter and not care about u, but I will not flip to the dark side no matter how ignorant your comments are. I am the ONLY one researching, posting videos, and trading openly day in day out, you should all be saying thank you instead of this crap I get...very sad

    Website owner, do take down the comment regarding how i dont hold up my moneyback guarantees, thats an outright lie spread by promoters to discredit me.

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  13. PS to the idiots who think I erase comments, my blog doesnt allow endless linking in comments so when u post, dont include multiple links, they get filtered out before i even see em...just one of the many kinds of truly moronic assumptions made by penny stock runts, welcome to my life, trying to teaching the dumbest people in the world, its a thankless job and the promoters only want to discredit me

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  14. Your morals and ethics are no better than the companies that you report on as being scams.

    You are as much of the problem with your deliberate misleading articles as those you accuse.

    You claim your intentions are to protect the small investor and yet I have seen you hurt them more with your poor dd and misleading articles than those that you claim are running a scam.

    Your intentions are to help no-one other than yourself. Or do you think we are all going to be blinded by your self appointed "super hero" crap.

    If your intentions were good, and you truly cared about the small investor, you would let a stock run. That would give the small investor a chance to get their money back and make a small profit. Then you could truly prove how smart an investor you are by timing when to go short. That way you would not be hurting those you claim to be protecting, and you would be maximizing your profits.

    Lets face it Timmy, what your doing doesn't even take skill or intelligence. With more than 99% of Penny Stock companies never making it to the big boards it doesn't take much to predict any rise in share price at some point will be matched with a fall. Makes your screaming scam look good doesn't it. Funny thing is you have been wrong a lot more than 1% of the time.

    I'll be back with the link for the gentleman that has been trying to get his money back !

    And I'm not a promoter as you claim. I'm a small investor that is sick of your tactics of rubbish everything because you have less than a 1% chance of being wrong, just so you can live on your crappy DVD sales

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  15. Have a look at the response of Tim Sykes in his recent blog post. The last 3 of 8 respond to this article. Has he fully disproved my article?

    http://www.timothysykes.com/2011/06/refuting-17-lies-about-my-being-a-penny-stock-promoter-a-scam/

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  17. I still do not know why Tim decided to short TBBC? I get out early even before Tim and believe that the stock price can not go under $2, but I was wrong. Tim really have some effects on the price of some penny stocks and sometime distort the true value of those stocks. In the specific TBBC case, the effect is stronger because of influencing of the whole market (DJ down more than 200 points). Is he a good investor, I am not sure. But I am the one who got some impact of Tim.

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  18. Tim even I will admit this last comment made no sense to me. What that DJ has to do with penny stocks I have no idea.

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  19. loving all these comments and sykes exposes. he deserves what's coming to him. karma.

    ahah, he banned me from commenting on his blog posts!

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  20. See my my latest response to Tim's accusation of lies here http://bit.ly/jlKjvs

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  21. I have followed Tim for awhile, and as an outsider, ( I dont subscribe because I can do it on my own without his service) I can say he provides an important service in leveling the playing field for the average investor. Love him or hate him, he opens a lot of eyes. BTW ..As a trader out here in Cali, I was hearing all about companies like LEXG before Tim was sounding the alarm...total BS companies need to get shorted/shut down before the poor mom and pop investors get burned and lose it all. Let Tim continue, maybe one day those BS mailers will stop fooling people

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  22. Guys, TS does not need me to defend him but as a lifetime sub I can tell you that you're way off base.

    This one is simple...$TBBC was a pump that didn't get pumped. When that happens there's only one way for a stock to go. Down. It's just a matter of when....so TS got out...

    Yes every once in a while TS buys will create a short term price spike. But the vast majority of his buys are on stocks that trade in the millions. What did $TBBC move, like 3 cents in an hour? His followers don't have the juice to move stocks the way you think they do...

    You can criticize TS legitimately if you choose, but I think you're off base here....

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  23. If those mailers stop fooling people Tim is out of business. His entire strategy is built around shorting those pumps. At least those pumps would stop fooling people though.

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  24. Great post, very informative. I think a lot of people will find this very useful.Keep post in coming future as well!!!

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  25. I enjoyed reading your articles. This is truly a great read for me.
    have bookmarked it and I am looking forward to reading new articles.

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  26. Here is a link to Wealth Insider Alliance's BBB ranking page. Timothy Sykes' website received an "F" rating by the BBB of New Mexico/SW Colorado. Just thought everyone on here might enjoy some facts with their coffee. PS Sykes is a turd.
    http://www.newmexicoandsouthwestcolorado.bbb.org/PrintReport.aspx?CompanyID=99130524%20Wealth

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  27. Wow. Was just searching for information about TS as I had just stumbled across his system online and wanted to check him out some before going further. It has to be said that I am incredibly shocked to find him or someone claiming to be him posting comments so harshly with 'texting' lingo instead of full sentences. While I can understand being upset if you believe you are accused falsely of things - there is a lot to be said for the way you respond to those things. Reading these comments just put a bad taste in my mouth. I'll be moving on and looking elsewhere.

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