Timothy Sykes - Stock Trader, Author, Entrepreneur

Timothy Sykes is a former hedge fund manager, star of the TV show 'Wall Street Warriors' and author of the book, 'An American Hedge Fund'

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Why Traders Should Ignore Corporate Mergers And The Financial Media Circus

Tags: ANALysts, CNBC, Financial Media Circus, Press
14 Apr 7:13pm
Posted by timothysykes
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Thanks to this high profile acquisition news of Blockbuster and Circuit City, the financial media circus is working overtime today. CNBC, Fox Biz, Reuters, WSJ, WWE, Marketwatch, AP, Minyanville, TheStreet.com, Portfolio, Bizjournals, Techticker, Motley Fool, SmartMoney.com, Barrons, Businessweek, RealMoney, Forbes, FT, CNNMoney, Briefing.com and of course the Richmond Times-Dispatch have each written articles about it. No joke, seriously, check out the Yahoo! Finance news list—it’s reminiscent of my media logo collage.

Within hours, we now have quotes from higher and lower-ups from both companies, competitors of both companies, industry observers, industry non-observers, economists, ANALysts, marketers, talking heads, journalists—everybody’s giving their useless opinion as to what this news means for consumers, competitors, investors, traders, the industry, other industries, society and the universe. Not to even mention all message board and blog buzz from those too unskilled to even gain entrance to the media circus (true gutter trash / waste of webspace)

Here’s my take: Bleh! All the coverage ruins it for me—once a merger/acquisition gets announced, both stocks are dead to me because a.) stock price volatility will be greatly reduced and become news/news-speculation not chart-pattern-based b.) people much smarter, richer and better informed than me are all over it and c.) so many people have so many different angles and expectations, it’s a truly efficient market hence unpredictable.

So please, do me a favor and spare any mention of any takeover/merger news FOREVER. On this site, we deal in opportunities where it’s possible to have an edge, to know more than others, focusing on getting the odds on our side. We don’t play classic Wall Street guessing games propagated by those attention seekers looking to drum up media hits despite being blatantly average, reinforced by their mundane journalist lives and meager paychecks.

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About

timothysykes

Timothy Sykes, author of the book, An American Hedge Fund, was born in Orange, Connecticut in 1981. He studied Philosophy and Business at Tulane University while turning his $12,415 Bar Mitzvah Gift money into a fully audited pre-tax sum of $1.65 million from 1999 to 2002 before founding his hedge fund, Cilantro Fund Management, LLC in 2003. He went on to graduate with a B.A. in Philosophy from Tulane in 2003. He is also the benefactor of a Tulane University Scholarship, The Timothy Sykes Day Trading Award for the Talented that is awarded annually to any deserving Tulane student, faculty, or alumni. In 2006, Timothy’s hedge fund was ranked the #1 Short-Bias Fund by Barclays for 2003-2006 and he was named to Trader Monthly’s 2006 ‘Top 30 under 30', a list recognizing the top 30 investment professionals under the age of 30.

After suffering a roughly 35% loss over two years, on October 1, 2007, Timothy closed his hedge fund and created a publishing company, BullShip Press, LLC to promote Freedom of Finance, the concept of a hedge fund manager’s right to discuss their business freely without risk of penalty or censorship. On November 1, 2007, Timothy unveiled TIM, short for Transparent Investment Management, announcing his intention to repeat his original feat of turning $12,415 into $1.65 million. This time around, Timothy would detail the step-by-step process on TimothySykes.com, becoming the first hedge fund manager to detail their strategies for all to see.

He recently debuted as a keynote speaker alongside industry legends Steve Nison and Larry McMillan and starred in the television documentary, Wall Street Warriors on MOJO. He now writes for AOL Finance and has been featured on Reuters, CNN, CNBC, FOX News, FOX Biusiness Network, Businessweek, Marketwatch, MSN Money, Yahoo! Finance, TheStreet.com, Forbes.com, Hedgefund.net, Hedgeco.net, Institutional Investor, Page Six, WallStrip, Gawker, Dealbreaker, Salon.com, The Los Angeles Times, The New York Post, The New York Times, The New York Times Magazine, The New York Observer, Trader Monthly, Dealbook, Alternative Universe and Absolute Return Magazine.

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