Tim Sykes Loses Battle with Pump and Dumpers on GVBP
or…. how I made $$$$, playing the Tim Sykes Effect
Yesterday Tim Shorted 15,000 shares of GVBP a penny stock with the cure for cancer that was a travel related company last month….
Tim did a great post on why this stock is total garbage and why he thought it was a excellent short.
Yesterday, he then shorted 15,000 shares of GVBP at 39 cents a share. I tried to short also, but my brokerage does not allow the shorting of OTC stocks.
“Shorted 15000 shares of GVBP at 39 cents/share…good starting stake directly into a huuuge morning spike, i’ll either take 10 cent/share profit if it drops or build my position as it rises…this is up on nothing but stock promotion so it should have a 50% drop or more within the next few days…question is when and that nobody knows…shares will become tougher to borrow, interactive brokers had them this time and since its such a low priced stock, the position is verrrry small in $ terms, goal is to make $1,000+ on a $6,000 position” - Timothy Sykes message
As Sykes often does he hit the Yahoo message boards and warns the people that the promoters are getting hyped up about the stock (which does not make them very happy). He then shorted more GVBP today….
“Shorted More GVBP at .53 right at the market open, total average cost is now 43 cents/share…this pump & scary, they’ve issued 3 press releases, all pretty meaningless/fluff, since the market close yesterday…methinks they’re getting desperate, but it is obviously risky to short directly into the pump…i’m currently down $2000ish and the main problem is that when it is the perfect time to short, there won’t be any shares available so i must risk pain for a potential large reward if/when this stock craters 50-75%…very very risky, but its worked dozens of times for me in the past and my research on this one means I have a very strong conviction that this is a pure pump & dump…win or lose, its gonna be a great lesson for all of you and a reminder to me to trade safer” - Timothy Sykes message
Unfortunately for Tim and his followers, the forces of evil (Paid Penny Stock Promoters) were too strong to combat, even for Tim Sykes, so he dumped his position at 62 cents a share.
“Covered 20,000 GVBP at 62ish cents/share…horrible, horrible $4,000ish loss…..” - Timothy Sykes message
This is where the Tim Sykes effect came in big time. I knew the battle he was fighting against the pumpers, and by him and his followers pulling out, not only would that cause the stock to go up more, it served as a buy signal for the gullible that the stock promoters have on the hook. So as soon as I got the “cover” message I bought 5,000 shares at 63 cents. As word got out, the stock started to take off ending strong at 80 cents to close the day. I am still holding shares as I believe this stock will surge tomorrow at the bell. The question is where is the top before GVBP crashes and burns?
In the chart below, the first red circle on the right is where Tim Sykes covered GVBP, the second red circle is where I jumped in:
Heres the Pump, When's the Dump?
The moral of the story is that it is not a question of whether Penny Stocks are real companies or not, (assume they are all steaming piles of crap) it is only the perception of the gullible and the stock gamblers that really matters.
Tim Sykes lost this battle but may ultimately win the war as he is moving $100k into his Interactive Brokers account so he can reshort GVBP at possibly $1.50 plus when it is finally set to crash and burn. I am scrambling to get money in my new Interactive Brokers account so I can join in on the shorting fun later this week. But for now I’ll enjoy the ride up and hopefully meet Tim Sykes for the ride back down.
!!!! Meet me for beers and also learn about pump and dumps from the master Tim Sykes at his Las Vegas Seminar !!!! 2 days until seminar pricing doubles.
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About the Author: I have plenty of sites that talk about making money on the web. I figured it's time to start a site that talks about saving money on the web. After all, a dollar saved is pretty much the same as a dollar earned.
Good post.
You took the words right out of my mouth, I was right with you but a few minuets behind with 12K @ .67 — yes in over night as well. Certainly hopping for a gap up in the AM again.
Have fun on the way up….and if I can get my IB funded quickly enough (Scott trade simply won’t let me short this) see ya on the way down!
MostlyLucid
It looks like Tim Sykes won the war on this one.
[...] week I did a post about how Timothy Sykes lost a battle and about $4k with his GVBP short when he got caught in a [...]
Is it just me, or does timothy sykes treat even his own members like crap? that chat post blog was horribly rude if that was his members section chatroom.
Ken,
That’s Tim’s shtick. The angry trading adviser.