Just like with every entry I post there is an exit posted, I felt I needed to do a blog followup & replace with what happened with Tim Sykes this week.   Here is an email I sent to Sykes in true form that closes my feelings on the subject of ZANE (Which is still not a good company fyi) & microcap trading, but more importantly his overall work against paid penny promoters that I have always said from day 1 on twitter I respected and won’t let one misunderstanding over the years go against my thoughts.  Here you go:

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My conscience got the best of me this weekend and I just had to sent you another email. 

Again, I appreciate your apology, because it’s rare to get one I hear from Sykes. 

I went back and researched this entire mess yesterday with ZANE and I watched your livestock show rerun last night where basically you got blasted by tons of haters.   

My conclusion is this about myself and others shorting ZANE:  myself, I was already short the stock ZANE and I just found out yesterday your posts do not show up on stocktwits, you wanted me to put the ZANE research out there for the stocktwitters because I was already short the stock.  Of course I did not know this at the time, but it now it makes perfect sense.  I automatically assumed since you never sent me research before by you flipping and going long was to squeeze me and several of my followers who were still short the stock, kind of nieve on my part.  As you said on your show, you follow my tweets but not every tweet, so I also have come to the conclusion that you had no knowledge of me or my followers short position.  So that being said…… 

When you flipped on ZANE long with just small shares, going from 19k shares short to 3k long, I think the people on stocktwits who read your article got very pissed off who shorted the stock.  I would say got over two dozen tweets and emails regarding your move on ZANE.  The hate generated was enourmous.  My guess my blog about having respect for you and losing that respect over this trade did not help but the core concept of what happened here remains. 

In my opinion, people became very confused on your flip from short to long on this low float trade, because you are ‘known’ as a penny stock killer.  My guess is there were even several of your own subcribers who were short the stock who did not realize you even went long, maybe not many, but a few.  However, the bottom line about the whole ZANE story is not much was won or loss during this whole ordeal. 

Sykes, we have been crossing paths for years, 95% of the time trading the same crap on the same side short.  Your stance against penny promoters must be RESPECTED.  Your research and information gathered on these penny stock scams over the years, by far, the best I have seen.  Your covestor numbers of verified trades speak for itself.  As you know a great trader always has full transparency, and this cannot be denied. 

Bottom line is, as a great trader, I go both long and short stocks, sometimes the same stock, on the same day.  However, if the market cap is tiny like below 100 mil, I try not to do this because I have found that the confusion never matches the satisfaction of money made.   Again, for me it’s never been about the money, but about the system, teaching about how to avoid crap stocks.  Your teachings and lessons about avoiding crap stocks CANNOT BE DENIED.    

Anyways Sykes, even though in ‘theory’ I have come to the conclusion nothing wrong was done with the ZANE trade, it just created mass confusion which is never good in the market.   As always, I may not agree with your marketing methods, but you do an outstanding job fighting in the dirty, dirty world of penny stocks over the YEARS and one day of market confusion does not change this.  Keep fighting the ‘good’ fight Tim - 

JW

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