Derf's Grotto

[CSykes]

Ahh.. posting here too..

Want a reply? I'll do one better.. how about a story!

I'll try a different approach in reply here since I already replied to you in the "Parking Lot". I feel like writing, your in luck!

Why I have no Conscience, an ex-Promoter Speaks Out

Written by Csykes

It was early 2006, I was deployed to Taji, Iraq with the 4th Infantry Division out of Fort Hood. Due to an injury sustained in combat during OIF 1, I was now sitting behind a desk working in Brigade HQ. I had an internet connection and a lot of money piling up from deployment pay. I decided to try my hand at penny stocks! Here was my very first post on a message board about a penny stock. http://www.superiorinvestor.net/stock-market-forums/postt2244.html

Like many first time penny stock adventure seekers I lost my ass in one pump after another but had just enough winners to keep the addiction going. By the end of 2006 I had racked up over $800K in total trades and ended the year with a $26K loss. I had all but evaporated every penny I made while deployed to Iraq. It was an expensive lesson, one in which I was determined to learn from.

By 2007 I had earned my bachelors degree in pennystockology. My tuition was $26K, the money I had lost in 2006. I was determined to make back my lost money. 2007 turned out to be a fairly flat year for me overall. What I did achieve in 2007 was a certain level of celebrity status. I had managed to pick a few stocks that did very well and my dry, sometimes sarcastic personality helped further my popularity on Ihub. By late 2007 I had read every book known to man about day trading, SEC regulations, penny stocks, stock promotion, marketing.. you name it.. I read it or studied it. Now I had my Masters degree in pennystockology and finally I was making more money than I was loosing. In June 2007, I formed Numarket Solutions, Inc.. I thought I would take my Masters degree in pennystockology and turn it into my own public company. I got a group of my buds together who owned IT companies and we decided to develop a web app for Veterinary clinics.
http://www.gobignetwork.com/profiles/Chad-Sykes3.aspx

I tried for 5 months to raise money. I contacted hundreds of VC's, Angels, subscribed to numerous sites like the one above. I probably spent a good $10K marketing the idea to no avail. My business aspiration were failing but my popularity on Ihub was increasing! By now, my membermarks had put me firmly in the top 50 on Ihub. It was December 2007 when I received the email from John Ayling, CEO of Leisure Direct, Inc. A few emails and phone calls later, John wanted to hire me to act as his IR contact. He wanted to pay me in order to use my popularity on Ihub. Since my Numarket project wasn't going anywhere I said yes.. and Numarket Solutions then became an IR company... (I was one of the few people on Ihub who disclosed compensation way before the IRP program ever started)

I spent the better part of 2008 working for several OTC companies as IR. My initial gig with LDTI (http://www.marketwire.com/press-release/Leisure-Direct-Inc-808340.html) landed me a referral to RVGD. I was hesitant to take RVGD on as a client because at that time I didn't really want to work with non-reporting companies. I weighed the risks and determined the popularity my company could gain by working with RVGD outweighed the risks associated with a sub penny pink. It was purely a business move on my part.

RVGD turned out to be both a blessing and a curse for my young company. I did get the exposure I was hoping for because shortly after becoming RVGD's IR (http://www.marketwire.com/press-release/Revenge-Designs-Inc-811932.html)and it's phenominal 1,600% run, I was approached un-solicited by EXPH and given referrals to both BDRR and SGGC. I was certainly on a role.. and things were looking really good! Then everything started to implode.

First, LDTI never paid me a dime, I lost $14,000 as a result and had to write it off (even promoters get screwed). RVGD's promissory note holder Steven Carnes and the CEO got into a pissing match with each other and Carnes called his note diluting the hell out of RVGD. SGGC's CEO's business plan failed when the price of oil dropped to a point he couldn't be profitable anymore. He couldn't raise capital efficiently because prior to my involvement he had a bad run with some promoters who haunted him (I didn't work long with SGGC). EXPH had to deal with a bad R/M in which his consultants basically dumped shares driving his price down into the toilet. When the economy started to slow and he needed to raise capital he couldn't do it effectively because of his poor share price. BDRR pretty much fell into that same category. Now, to add insult to injury, the financial markets collapsed and the OTC lost 70% of its liquidity.

At this point every single one of my clients stock price was tanking. I found myself the one and only guy staring face to face with all these pissed off shareholders. Even though I had nothing to do with any of the problems, and in some cases the companies themselves couldn't do anything about it either. I was burned at the stake by many. The majority of which didn't have the experience or knowledge to even understand what was happening, even if you tried to explain it to them.. which I tried. I quickly realized just how ignorant the majority of penny traders were. It was at this point I lost my conscious or any compassion I might have once had for the average penny trader. When you get death threats on your answering machine and hundreds of emails spewing hate and filth by people who didn't know the difference between common and preferred, it tends to irritate one.

So, with that said.. I decided I never wanted to work in a situation where I had to deal with penny stock traders again one on one. It was like trying to teach Quantum Physics to a group of Pre-K kids on Ritalin.. never again.

The ineptitude of people who post on these message boards astounds me. The experience level is also atrocious. I am self taught, no college, I worked my ass off to become self employed in this industry. Try IR'ing for 5 public companies at once!

I didn't let it hold me back though, I took my new knowledge of the industry and how many OTC companies never have a chance, not because of bad management or a bad business plan, but because the people who took them public took advantage of their inexperience. EXPH.. screwed by the company hired to take them public. RVGD.. screwed by the guy who took them public. SGGC.. screwed by promoters, failed business plan. BDRR.. screwed by financiers and promoters.

I'm quite happy to report that my new business is thriving. I took all these lessons and I'm now providing consulting on the going public process to private companies. I'm also providing executive level management support for publicly traded companies. I took my lemons and made lemonade..

So when I see someone like you whining about stock promoters.. all I can think is.. I hear the WHAAAAAmBulance coming..

If you want to have intelligent conversations with me your going to need to try a different approach. Right now I just see you as another inexperienced penny trader blaming everyone else for what is most likely a bad trading/investment strategy on your part.

I learned my lessons.. others can too. Wall Street is a place where only the strongest survive.. your not going to get strong until you take a few licks.