I Got Stock Promotion Mailer CNTO After SEC Halted It
Backstory. I started the Tim Sykes Millionaire Challenge on January 27, 2014. To date I have read his book, watched countless hours of informative DVD material (given to students), participated in 6 live webinars and learned more in less than a month than I have in all the years I have been investing and trading in the stock market. I have NOT traded any penny stocks based off of Tim Sykes’ method yet as I am still educating myself. Here is an example of a small piece of my education.
Tim Sykes is famous for many things. He is famous for turning 12,415.00 Bar Mitzvah money into 3.5 million dollars playing the stock market. He is famous for being the king of short selling penny stocks and he is famous for highlighting (exposing) stock promotions/promotors.
That being said Tim was doing a webinar and during the webinar he said to his students that he was looking to short CNTO. He showed us the chart pattern and told us the reason he was doing so.
A day later I received an email stating that Tim had shorted 100,000 shares of CNTO at $2.08. Then shortly after (no longer than 24 hours) I got another email from Tim stating that CNTO was halted by the SEC and he was going to BANK.
What does that mean?
- If you know what shorting a stock is skip below and don’t click here.
- If you know what trading halts are then skip below and don’t click here.
- If you know what a penny stock is then skip below and don’t click here.
It means that Timothy Sykes is holding what appears to be a lotto ticket. Better said, when CNTO starts trading again it will either open at a really low price or tank as people who are long CNTO run to get their money back. All the short sellers of CNTO (especially Tim Sykes) will make BANK.
Let me break it down loosely using numbers.
Tim Sykes borrowed 100,000 CNTO shares at $2.08. Then sold them on the open market.
100,000 x $2.08 = $208,000.
He has to eventually give those shares of CNTO back to his broker. If CNTO re-opens at 50 cents a share he can buy them for $50,000.
100,000 x .50 = $50,000.
Then he can give back the shares he borrowed.
$208,000 – $50,000 = $158,000 PROFIT
Note there are fees to borrow shares but the bottom line is Tim Sykes will BANK when CNTO re-opens.
Ok that is all interesting and fun news and I am super happy for Tim being at the right penny stock at the right time (he can’t predict halts) but below is the best stock promotional mailer (and stock education) I have ever gotten in my life. Why? Because CNTO was halted 6 days before I received the mailer.
Now I don’t know John Myers (the name of the person on the cover) and I wish him no ill will. However, I thought it was a good story to share for the people who are reading this blog because the stock promotional mailer came to my home after the stock was halted.
Let’s be honest. The stock mailer is wonderfully designed and convincingly well put together. In fact, if I didn’t know what I know now I would have possibly bought some random shares at some random price to hopefully one day wake up a multi millionaire.
However, that isn’t how penny stocks work. AND… if you read everything on the flyer and I mean EVERYTHING (ESPECIALLY THE DISCLAIMER) you will
hopefully know how to make a more informed penny stock trading decision even if you never want to be a trading challenge student or Tim Sykes subscriber.
Anyway, below is the penny stock promotional mailer for CNTO that I received 6 days after CNTO was halted by the SEC. Please click each page to expand the size and read it carefully. Pay close attention to the DISCLAIMER. I even added an enlarged copy of the DISCLAIMER and highlighted my favorite DISCLAIMER part.
After the disclaimer you will find a link to the day I started my millionaire challenge journey and a video on the day Tim Sykes called CNTO.
UPDATE – on February 26th 2014 CNTO reopened after being halted for 2 weeks.
Tim Sykes covered at $1.22.
He made $70,000.
Click Here to Read When I Joined the Millionaire Challenge.
Click Here to Watch Tim Sykes Make a Call on CNTO a Day Before the SEC Halted the Stock.