Has Timothy Sykes Turned to Scientology for His Stock Picks?

March 16th, 2010
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It has been a while since I have visted Timothy Sykes website and I was a bit shocked when I did a google search and the following image results came up:

Timothy Sykes Scientology?As you can see the image on the very end looks to be Timothy Sykes addressing a congregation of Scientologists. After closer inspection however it is clear to see it is a Photoshop fake. So if Timothy Sykes does not have the divine power of Alien life-forms to pick stocks for him how does he do it?

Timothy Sykes The King of Pump & Dump’s

I am not implying that Timothy Sykes promotes these garbage stocks, he merely identifies them. Most of the time he will short these stocks, occasionally he will ride them on the way up. If you want a more in depth statistical analysis of Tim’s trades check CXO’s blog a summary of his findings are shown below:

Notable characteristics of the balance of 295 trades are:

74% of the trades are profitable.

On a trade-weighted basis, the average net return per trade is 6.1%.

The standard deviation of trade returns is 13%.

On a dollar-weighted basis (derived from the trade data provided), the average net return per trade is about 4.0%. In other words, large trades tend to be less profitable than small trades.

The arithmetic (geometric) mean monthly net return of the underlying portfolio is 10.5% (10.3%).”

His final summary shown below:

” In summary, evidence from simple tests on available data supports a belief that Timothy Sykes can identify pump-and-dump patterns in real time with economically meaningful consistency, but scalability is multiply constrained such that his subscribers may not be able to mimic his trades reliably. Niche constraints may preclude exploitation by large traders, a large group of small traders and funds.”

I have yet to go over the numbers myself but the conclusion does seem reasonable. In the past I have reviewed:

Overall I was happy with the material presented in these DVD’s however they left me wanting to investigate Tim’s trading tactics more and see if  they could be applied to the Australian market. Over the coming weeks I will be watching and taking notes on all of Tim’s new DVD’s and see if I can turn this knowledge into a tradable system. I will be watching the following DVD’s

  • Shortstocking.
  • Tim Fundamentals I and II.
  • Learn level II.
  • TimTactics.
  • Best of Livestock.
  • Read SEC Filings.

It is a lot of material to get through but if the previous DVD’s are anything to go by I am sure they will be entertaining. I will leave my final judgement till I have gone over all the material.

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