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Yes, My Business Is For Sale: Valuation $10-15 Million

Posted by Timothy Sykes on Mon 2nd of Feb, 2009 04:16:23 PM
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I get this question enough so it’s time I just address it once and for all…(well for now…based on my current numbers)

Considering my little online business built around PennyStocking has been steadily bringing in $50,000 - $80,000/month for the past 6 months now, I’m glad to say that if I were to sell a stake or all of it—don’t worry, I’ll never stop being directly involved—I’d expect this valuation because this thing is a profit machine….and it’s just the beginning.

And no, I’m not embarrassed to tell you how much I’m making because I think full transparency is ALWAYS A GOOD THING and not only is it SORELY LACKING in finance, brutal honesty is a key trading lesson as traders must be more honest with themselves about the losses/risks they take, the opportunity cost of trading, undisciplined trading, etc.

As for the specifics, we’d have to deal with those later, but I’d definitely have a continued role as the majority of my products have my name and I won’t let that go to somebody like a penny stock promoter—trust me, I’ve had six figure offers to sell out to the dark side, it ain’t gonna happen—all you’ve got as a trading coach/guru is customer testimonials and right now I’m extremely proud/happy that the vast majority of my customers/students are happy/profitable.

The going rate for most businesses of 10-15x income, so then my business would be worth $6-9 million at that rate, but….

…my income has been doubling and tripling month-over-month, not even year-over-year as TIMalerts was just introduced in June 2008…so we’re talking 700-1,000% year-over-year growth, the rate of course will hit a ceiling eventually but considering absolute crap—gurus who have crappy track records or refuse to share theirs—do tens of millions per year, and a trading fraud busted a few months ago for preying on senior citizens was doing hundreds of millions in revenue! (I haven’t even gone after senior citizens yet)…

No to mention that as my superior track record grows—as, if I stick to my core trading rules and patterns detailed in my PennyStocking and PennyStocking Part Deux DVDs, it inevitably will—my Covestor domination continues and the superior performance of my dvd students continues, the business becomes more valuable and sales will most likely take off….William O’Neill-style.

Not to mention, I’m getting huuuuge amounts of web 2.0/blog experience so when most blogs that are getting valuations at/bought out for ridiculous amounts are USUALLY LITTLE TO NO REVENUE LET ALONE PROFITS, aka huuuuugely money-losing “operations”, that knowledge/experience is worth a little something extra.

Not to mention we’re in a recession/depression so hype/manipulation will surge to the forefront of the stock market as desperate small companies use desperate measures to pump up their stocks to raise capital and online brokerage customers are poorer/more desperate themselves, forcing them into a gambling mood.

Oh yes, all the major trends are in my favor and I really don’t even want to sell, but I gotta admit I could use a budget for marketing/infrastructure. Soooo much BS to cut through, it’s gonna take millions in marketing/awareness to even really to begin putting a dent in a lot of the misinformation caused by crap like CNBC and Trader Monthly.

Worst case scenario is that there’s no rush–my track record, and those of my students, are gonna be siiiiiiick in 2, 3, 5, 10, 20 years and poor people everywhere will inevitably understand why it’s so much easier down here in the gutter for those with small account sizes and I’ll have reduced people purely gambling in scams like forex, GOOG/USO guessing games.

Oh yes, I’m talking about creating a massive Vegas-but-better-odds-with-enough-knowledge-and-research PennyStocking operation with events, multiple sites/online tools, brutally honest commentary, heck, maybe even a university…

If you’re interested, CONTACT ME

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  • mattie
    I will give u a nickel for it.
  • a nickel and $10 mil and we'll do business
  • Tanour
    Mattie,
    I am so surprised that Mr. Timo didn't reply back to you by saying something nasty like "Shove it".
    Good Job Timo
  • ati
    tim i admire your trading/moneymaking skills but...

    when u r making love to your wife do u think about making love to urself right?
  • Mike
    Tim:

    losing almost 10% in one week brings out the best in you doesnt it? You have to overshadow your losing streak with louder chest pumping?
  • losing 10% is part the game, which is why i cut losses quickly, makes no difference in the long run
  • LP
    Tim,

    Why do you think the going rate for businesses is a multiple of 10-15x income?
  • marketgirl
    tim
    in this market conditions you better be happy to settle for 1/1000 of that!
    your business is so much centered around you and its survival is not possible without you, so it is not going to work for anyone!
  • otss
    Are you aggressively looking to sell your business or are you just throwing it out there for those who might want to buy it?

    Basically, do you want to sell it, or are you just stating that at the right price you will sell it?
  • nystockguru
    Timmy,
    When are you going to sign a major network television contract? and if you making bank and have lots of growth potential - why not go public?
  • jose
    why dont you just ipo into the pink sheets, pump ur stock, and short it so you can bank
  • Max
    Tim, why not go public? List your company OTC and create your own hype!
  • Tim, I'm doing a series of posts, "So you want to be a stock trader". You will find the first article interesting and worthy of citing.

    Michael
  • Reaper
  • LOL
    TIM is funny, I like him.
  • otss
    Reaper, great content.
  • not aggressively looking to sell, just getting too many emails about this so instead of copy and pasting....
  • Buyer
    Hey Tim the biz wouldnt work without you, so not point of selling it for that amount.
    You can sell the biz model idea (which is already revealed) for a smaller amount!

    Cheers
    Pete
  • Seems someone is getting nervous, people sell business when they sense a decline coming. CYGTv 2.0
  • getting nervous? what do i have to be nervous about? i've been doing this for a decade suckas, if u got as many emails asking me about selling, u'd blog about it too, but u dont have any offers because u're not worthy
  • wtf dude!?
    wtf tim!? just by looking how many trades you fucked up one after the other recently, i think i know the reason why you are dying to sell the business. of course you can't continue this dvd-selling shit for the rest of your life. people already know your business doesn't worth a penny. so don' t pretend anymore. remember talking about crab companies? now you are one. well you are just a blog and like many other blogs will disappear in one day. go to a college and learn a career. game is getting the end for you stupid suckers.
  • LOL, i'll have plenty of streaks more than 3 bad trades...the key is controlling losses and focusing on longterm account growth, learn to trade instead of wasting my time
  • Robert
    Are these people really dogging you over three bad trades. I think they are hating because that's the only red in a sea of green. Shake dem haters off TIM!!!
  • mark
    This business has come to an end, the dream of shorting penny is only that, a dream.

    99% of the time, there is no shares to short
  • no mark, u're just not looking in the right places
  • Gordon
    $10-$15M? you're delusional.
  • gorodn, what would say for a business earning close to a million/year in its first year...and thats only getting more profitable each month
  • oexspecialist
    Getting past the hype and self back-slapping, you'd be well-advised to actually do some studying on business valuation. You would get nowhere near your out-of-thin-air valuation.

    Self-employed service businesses go for 1-3 times revenue, at best. Most buyers require a 5-10 year business history, not six months. You have to prove you have a going concern through all business environments.

    You're argument that "hey, if it works in a recession, it will always work!" doesn't carry water. Your business may very well suffer during the next bull market as traders find out that flipping penny stocks isn't worth more than just buying and holding a low-cost index fund.

    Anyway, I know you don't plan to sell so this is just pie in the sky dreaming. But your self-congratulatory delusions are hyper annoying.
  • mattie
    ok im in - i will give you that nickel and an I-O-U...you know im good for at least 10mil.
  • ok 1-3 times revenue in a few months/years will be $10-15 mil, u guys dont understand how confused people are out there, i could be up 10%/year and still bank, the extra 190% is just gravy
  • Mike
    Tim now you are just crazy talk. oexspecialist is giving you actually very sound advice. You seem fixated on $10-15 mill. Why not just sell your business for $1 mill today. Or heck just dont sell your business. If it is that "gravy" why end it?

    Businesses need to have predictable stable income. Yes you are on the right track but you need a track record. Just like all these crappy hedge funds that last an economic cycle and then go bust and get no respect from you - you need to prove you have longevity.

    You seem to be a personality that wants everything yesterday. You need a little more maturity to realize life just doesnt happen this way.
  • who cares about $1mil, that'll soon be monthly income...track record, guys, i have a friggin decade track record, wait til u see my 20 year
  • snodgrass
    statiscally speaking, if you really want to make money, just go long on tim's shorts
  • Great job in reaching the 40k mark TIM.... Well done
  • I hope you sell it, but the problem a VC would have here is that the biz model you have is entirely replicable. In fact, the TIM alerts is just like Dr Js InsideOptions, which I get delivered to me everyday (and is pretty good)....any potential investor WOULD never invest unless they could ascertain that you would run the business as before...it's like the Street.com - no one bought it b/c no one could make sure Cramer would be there forever - too much "founder" risk...
  • lost
    "who cares about $1mil, that’ll soon be monthly income…track record, guys, i have a friggin decade track record, wait til u see my 20 year"

    Of which on this website you have posted exactly one year of that supposed ten year track record? Oh hows that hedge fund you were running?

    10-15 million, what by that time you'll of released your 152nd dvd "Tims Choice - How What I eat for breakfast in the morning tells me what to trade for the day"

    Cutting Losses Short? This year?
    Average winner 498
    Average loser 1038

    Nice!

    your full of sh**, enjoy the ride..everyone wants to be part of the top 1% and doesn't want to know about the other 99% your going to get chopped to sh** this year and with it your customer base.
  • Mike
    Tim I hate to burst your bubble but the market values TheStreet.com at around $87 million right now.

    So you actually think this website is worth 1/6th to 1/8th valuation to TheStreet.com.

    The company also operates Stockpickr.com,BankingMyWay.com,MainStreet.com,.... In addition, it operates two subscription Web sites RealMoney, and RealMoney Silver.

    http://finance.yahoo.com/q/pr?s=TSCM

    I mean really Tim you think you are worth 1/8th of theStreet.com? I give you credit but what happens when you arent there? You need to hire a staff that can carry the content on the site if you decide to take a vacation, or have some sort of change of heart. No one in their right mind would pay that kind of money with you being the only draw. If you want to sell your business you are going to need to build a structure that doesnt depend solely on yourself.

    Unless you can provide me an example of a similar company that was sold that is strictly based on 1 person providing the sole draw, I dont see it.
  • sdj
    Mike, I hate to burst your bubble, but I don't think Tim's head is small enough to comprehend that.

    everyone short tim!!!
  • yes but thestreet.com isnt cutting edge, wait til u see what were gonna do over the next years, it'll blow your minds...i pity the street.com for they are becoming more obsolete every day since they're unwilling to embrace new technology
  • and dont worry i'll post my entire track record shortly, i'm 100% transparent just got about 50 projects on the table right now...as for my losses this year, u're taking a data sample of like 7 trades, why dont u add in all my 2008 trades and see what u come up with sport
  • lost
    haha 50 projects? by that you mean bashing out the same old rehashed tim posts about sticking it to the haters and being mr 'transparent'?

    If you really were serious about being true to your word and transparent, your 10 year track record would of been the number one priority.

    p.s HEDGE FUND
  • timo
    nah just sucking in the most number of dummies before i smack your faces once and for all...by projects i mean new DVDs and websites...and as for my hedge fund, its a 3% annual return over 4 years, doesnt real hurt my 200% year in 2008 and 200%+ average from 1999-2002...also waaaaay past performance isnt as important to me as recent which is why its hilarious that u guys try to bash me when i've been #1 on covestor, out of 15,000, for over a yea rnow...rip on someone who isnt doing great, or even sharing their results, like 99.9% of the industry
  • poor tim
    poor day dreamer tim, you seem to work really hard to try to forget your hedge fund.

    you are the #1 on covestor? who the fuck cares? who are your competitors there? a bunch of poor college students losing money because of the hypes and bullshits you spread?
  • timothysykes
    i've got 15000+ competitors on covestor and somehow my despised ltitle strategy is #1...and i got about 50 students in the top 100, dont hate, just join us and profit! my guess is youre some value investor wondering why C is trading at $3 LOL
  • >>my guess is youre some value investor wondering why C is trading at $3 LOL


    hahahha. C is indeed at 3.
  • Joe Chang
    Isn't TheLion.com traders site for sale? Heard it's worth $30M.
  • Huh
    Tim, were you drunk when you typed up this post?
  • LMFAO
    Thanks for the laugh Timmy, I needed that. (Wait for toys to be thrown from pram)
  • YouCallYourselfTraders
    “There is only one side of the market and it is not the bull side or the bear side, but the right side.” J.Livermore

    You're right TIM, 10 M -15 M (why not more 20 M). Those idiots do stock/market compare asset/value, academic stuff. Who the bloody hell care what they think. Put your limit for TIM at 10 or 15 or whatever you feel it's value and let the market hit it. If some OTCBB or pink or any stock for that matter goes to above fair value sometime, then why not yours company (or whatever you young people call it today).

    Gordon Gekko:'' It's all about bucks, kid. The rest is conversation. ''

    Regards
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Start Here

Who Is Timothy Sykes And Why Should I Care?

See Tim's full bio HERE. Tim turned a few thousand dollars into a few million by taking small gains time after time on hundreds of volatile penny stocks, discovering that his trading strategy, while consistently successful, works best for those with smaller accounts.

Determined to teach others this PennyStocking trading strategy (learn more HERE), he went back to his original $12,415 roots (already $58,000+ even though the stock market has crashed) to show everyone how to turn thousands into millions, even while having a life (somewhat) and making plenty of mistakes. Currently he is the #1 ranked trader out of 25,000+ on Covestor)

How Can I Consistently Make Money In The Stock Market?

Hard work, Determination and Know How.

Hard work to learn how the greatly misunderstood niche of penny stocks provides opportunities every now and then on which you should pounce.

Determination to seek those probable profits out and know how in order to actually profit from them.

Long story short, wait for stocks that are extremely volatile - for whatever reason - and then aim to take small profits (between 10 and 50% within a few hours, days or weeks) here and there, either from betting on higher or lower prices (yes, you can make $ betting on lower prices, it's called Shortstocking (learn more HERE).

Why Penny Stocks?

As Tim explains in several ALL-NEW instructional DVDs (see them HERE) and in over 2000+ blog posts, penny stocks are the most hyped and corrupt niche in the entire investment world. These two qualities make them the easiest to profit from (legally) because the vast majority of people who play penny stocks are suckers and all-around ignorant people. If you have any intelligence whatsoever, you have a clear advantage and it's like playing basketball against mental midgets.

Where Do You Find Stocks To Trade?

This is the #1 FAQ (see more HERE) and it is answered in THIS instructional DVD.

Of course, that's just a brief introduction - to receive a full education, there is Tim's book An American Hedge Fund which is the story of his remarkable rise and lessons learned.

To truly increase your odds at profit, Tim has designed an entire set of detailed instructional DVDs, covering all the variables that amount to over 24 hours of instruction (see them all HERE)!

TIM Trades

View All
Date Stock Buy Sell Net
Nov 19 AENY $2.80 $3.02 $1148
Nov 18 NLST $4.16 $4.40 $947
Nov 18 IMGG $1.42 $1.64 $2094
Nov 17 NLST $5.04 $5.59 $2195
Nov 13 VRMLQ $21.50 $22.97 $2901
Nov 11 EONC $2.61 $2.80 $687
Nov 10 EONC $2.74 $3.36 $9784
Nov 6 QXM $4.31 $4.80 $1936
Nov 4 COT $8.66 $8.88 $642
Nov 4 QXM $4.61 $4.89 $822
Oct 30 DDRX $25.70 $26.53 $812
Oct 29 CTDC $4.00 $4.42 $781
Oct 26 AWSL $3.24 $4.10 $2516
Oct 23 RODM $5.27 $5.23 $301
Oct 22 AMLM $2.69 $2.97 $820
Oct 22 USEG $6.12 $6.09 $85
Oct 20 CBOU $8.93 $9.06 $243
Oct 16 VRMLQ $16.79 $18.65 $2773
Oct 13 YONG $11.05 $11.66 $1202
Oct 13 NPHC $0.59 $0.71 $583
Oct 12 IMGG $0.60 $0.70 $682
Oct 9 ZAGG $5.50 $6.10 $2380
Oct 7 GVBP $0.03 $0.27 $702
Oct 1 NPHC $0.70 $0.85 $1482

Total: $98,094 (681%)