“You Blew It Up! Damn You! Damn You All To Hell!” The Penny Stock Version
For all of you who haven’t read my book An American Hedge Fund or watched my PennyStocking instructional DVD Package, back in March, I wrote about CYGT being the stock, the sole reason, as to why my hedge fund lost 35ish% over 2 years in 2006 and 2007 (see blog post HERE).
Tough, tough, tough, tough, tough lesson, but it made me more cynical, conservative, an infinitely better teacher and even more determined to stick to my core trading strategy, a strategy that has yet to produce a huge loss, especially when I stay true to its quick loss cutting principles.
Anyway, that bankruptcy filing was pretty much the end of the story for me and the 1 million+ shares of CYGT I’ve still got–maybe I’ll frame the stock certificates as a reminder of how corrupt/bad/lying/failing (not personal just business) ALL these tiny companies are–but the other day came the nail in the coffin as the company was auctioned off (read filing HERE).
Perhaps it’s telling that the buyer was V3 Enterprise Solutions, LLC, a mystery company that shares the same address with V3 Capital, a firm that stresses “growth in shareholder value” (laughable) and PARC Management, LLC, the very same guys who took over some Six Flags properties a while back.
This line in the filing says it best: No distribution is expected for CYGT shareholders.
I’ll spell it out for ya: V3 stands for vultures, vultures, vultures, PARC wanted CYGT’s awesome software to help/save their failing parks and CYGT’s new management didn’t want to deal with the skeletons they inherited from CYGT’s old management (maybe they come aboard PARC?). Might as well write out “bankruptcy is painless” all over the CYGT headquarters as this was a perfect setup.
It’s not personal, it’s business.
And this my friends is how most of these Pink Sheet/OTCBB-listed pathetic excuses for companies end. If they’re lucky. Debtholders get pennies on the dollar, acquiring firms get assets on the cheap and common stockholders get nothing.
Start likin’ it!
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| Date | Stock | Buy | Sell | Net |
|---|---|---|---|---|
| Sept 4 | COIN | $5.70 | $6.21 | $745 |
| Sept 3 | COIN | $6.49 | $6.30 | $305 |
| Sept 3 | COINW | $2.75 | $2.85 | $180 |
| Sept 2 | TAYD | $7.51 | $8.13 | $545 |
| Aug 18 | FOUR | $2.80 | $2.66 | $342 |
| Aug 14 | APII | $2.66 | $3.30 | $1261 |
| Aug 12 | APII | $3.25 | $3.40 | $285 |
| Aug 7 | NOBL | $5.02 | $5.49 | $680 |
Total: $26,508 (
114%)
1Marc
July 20th, 2008 at 11:53 am
Wow… that’s eye opening. I guess investing in a new business model is no guarantee you’ll be rewarded for the success of the model. Separating people from assets must be very profitable if you’re good at it…
2thegearedinvestor(TIMBUCKS: $5)
July 20th, 2008 at 12:10 pm
Nice observations Tim,
Any thought on whether CVP is in a position to short after Friday?
3A
July 20th, 2008 at 2:55 pm
Tim,
That CYGT example reminds me a lot of GBR. It trades on the AMEX. Formerly known as Greenbriar Corp, from the late 80s/early 90s, this firm’s core business was “nursing home and retirement centers, primarily in Oregon, and an outlet mall real estate investment in North Texas.”
In 2005, they changed their name to Cabletel International (still trading under GBR ticker) with a core focus of cable television operations in the country of Bulgaria.
This past May, they changed their name to New Concept Energy with a core focus of engaging in the acquisition and exploration of oil and gas properties in the United States. LOL!
4A
July 20th, 2008 at 2:57 pm
The funny thing is that, until I started reading ur blogs earlier this year, I admit I was one of the suckers who actually used to believe in the stories behinds these microcaps/penny stock companies.
5timothysykes
July 20th, 2008 at 4:19 pm
new post:
http://www.timothysykes.com/ti.....-nyse-fre/
6timothysykes
July 20th, 2008 at 7:57 pm
i know enough to know i dont know everything, which is far more than i can say about the majority of those in this joke of an industry
7cash(TIMBUCKS: $106)
July 20th, 2008 at 11:58 pm
RIGHT Tim knows nothing just check out his large bank account you IDIOT.
8cash(TIMBUCKS: $106)
July 21st, 2008 at 12:05 am
I just can not believe these jackasses do not get it. Thanks for airing out the truth Tim. I just hope everyone realizes how lucky we are to have someone like Tim be an open book on this joke of an industry. he has a platform and he using it to educate what is not to like about that. he will be making us all a lot of money so keep paying attention.
9TheParadox(TIMBUCKS: $15)
August 4th, 2008 at 10:18 pm
Don’t feed the trolls, I saw what you did with USS, i got the alerts and stared at the chart while my funds where in transit to my account, and i watched in awe what would have made me about 1k - 2k over the next few days.
some people will be skeptics, but you were right, when everyone thought you were wrong.