I have a love hate relationship with Sycamore Entertainment Group’s shares and it’s CEO Edward Sylvan.
I love Sycamore shares because it makes me a lot of money that helps me take care of my family.
I hate the company and it’s CEO for taking as long as it has to make Sycamore into the company I know it can be.
I am a momentum penny stock trader always chasing profits from trading price and volume action in shares of small little known public companies.
I have traded hundreds of symbols over the years and in all those years. I have never felt the need to write a guest blog post about any one of them, until now.
Sycamore Entertainment Group Inc is a tiny company involved in the movie business. They claim to be the marketer of movies to the theaters and to digital platforms like Netflix, Amazon and the others.
SEGI first showed up on my stock screener in late December 2017 because of a press release that the company had put out about a blockchain deal.
Without even giving it a second thought and with SEGI being a sub penny, I took a position for a few thousand dollars, so that I wouldn’t miss out the big action that was going on.
I love the sub pennies trades because of how well I can really leverage them. A few ticks and good some momentum and I can double or even triple my money before the end of a trading day.
That day, SEGI was up on a few hundred million shares and looked like it was headed much higher. I figured I’d hold until just before the close and then dump them so I wouldn’t get trapped on the wrong side of the selloff that usually happens in all these plays.
10 months later I’m still holding my original position in Sycamore. Here are some of the reasons why I chose to hang on:
Whenever I trade pennies. I go through a series of quick tests to determine when to dump my position and move on. First I’ll look at volume which is what pulled me into SEGI to begin with
Then I look at the 52 week high and low, the charts, and level 2, then ill head over to the my private trading forums and then to IHUB to check out what the boards posters and the pumpers getting the fills have to say.
In doing my initial due diligence, SEGI struck me as being a bit different. The IHUB board was more active than the usual boards I normally track.
I found that the messages on the board were less about the price action and more about Edward Sylvan the CEO.
On the forum info page there are pictures of Edward Sylvan at what looks like red carpet events and videos of him hanging out with A-list celebrities, the chat was also sprinkled with post of tweets from the Sycamore Twitter Feed written by the CEO himself all in real time.
It was like a party going on in there and Edward Sylvan was in the middle of it. I have never quite seen anything like it in all my years trading penny stocks.
Over the next few trading days of that run, I made a nice profit but for some reason and based on what I had seen that week, I chose not to dump the rest of my holdings.
In fact, over the past 10 months I have kept adding to my position taking profits whenever SEGI would go for a big run and then reloading on the pullbacks along the way,
This pattern of selling the runs and buying back the dips has become predictable. That’s why now, I always make sure to maintain a good position in SEGI.
The truth is, by just trading the SEGI pattern I have made back most of the losses I have taken trading pot and crypto stocks over the last year.
It’s like a no brainer. But it takes some patience. A rare trait in penny stock trading.
I also noticed that the weeks after the run when the volume dried up and the price volatility was gone.
The chatroom was still active and alive with people taking sides about whether Edward Sylvan had the ability to get the company going to new highs on the next run.
Posters were debating what the next price target might be and speculating as to when project news was most likely going to drop.
At this point I started doing deeper due diligence which I almost never do. This is where it started to get interesting.
A quick Google of Edward Sylvan and all sorts of interesting stuff comes up. It doesn’t take much to see that he is in fact connected to the movie business and he is trying to swing for the fences with SEGI.
The results that come up on Google are a mix of well populated social media profiles, with photos of him socializing with billionaires and millionaires in exotic location around the world, him hanging out with movie stars, and other people I did not recognize.
On the company website it mentions a film that they must have put into theaters named The Eye of the Storm. I checked on Amazon and there It was listed for rent and for sale. Not bad.
The site also has a bunch news releases dating back to 2010. It gave me a good idea what the company is all about.
All this got me thinking that he is connected to the media and to real whales and real movie projects. I came to the conclusion that maybe there is something more to all of this.
I also found some negative stuff on Google having to do with lawsuits against him and the company where people and other companies were claiming to be owed money. But after looking into them I wasn’t really too worried.
This is penny stock land after all and I have made money from stocks where the people behind them were down right criminals. So I figure compared to what other CEO’s have done, Edward being sued over owing some money was no real issue at all.
To me, lawsuits in some industries is just an occupational Hazard. Movies and Medicine are the two that always come to mind.
I also know a few people who work in the pharmaceutical business and they are always telling me that their company CEO is involved in some new lawsuit or another.
It did get me to believe that maybe his ambition was bigger than his bank account. A common trait of some of the richest people in the world when they were first starting out.
One thing is for certain. Edward Sylvan is out there shaking things up.
In going through the Sycamore press releases I noticed that Edward has tried and missed the boat on a good handful of projects.
The one thing I noticed in common is that they all seemed to be pretty big deals. How in the world did Edward Sylvan get them in the first place? and how in the world did he let them get away?
This is what lead me to the reason why I am still hanging onto this puppy to this day. What If one day he lands one of those big deals he is currently working on?
Why do I think this?
From IHUB I noticed that Edward Sylvan communicates mostly on Twitter (Donald Trump style) I also read that a few of the posters chat with him via Twitter on a regular basis.
I started following him and commented a few of his post. Within a week or so he responded to me and started following me back.
I have traded tons of penny stocks and I can’t think of any CEO”s that I chat with on a regular basis and who are so open and accessible.
So I took the liberty of sending him a direct twitter message. He responded instantly. Almost unheard of in the world of pink sheet stocks.
I wanted to find out more I started to send him messages asking him about some of those missed deadlines and opportunities, the lawsuits, and a whole list of other things including the audit delay, and the outlook for the share share structure.
The responses I got to were more than I expected and I have to say, It ticked a lot of the right boxes for me.
I have to say, Edward Sylvan is super knowledgeable about markets and trading. I learned more about how these stocks trade just from our chats.
The first thing I asked was about what deals are in the pipeline and where money going to come from.
He said that is was not able to comment on exactly he was working on but that the pipeline of deals is full and that money was coming from investors out of Asia.
I also asked about what is holding up the audit for what has been what a few years. He said that he is waiting on a few holdout note holders and they are reaching a settlement so that he can close the audit off and that funding to pay them off is ready pending an final agreement between all the parties.
He also said that he is committed to ensure that no more notes will converted. He is now using revenue from his partnership in SILAU LLC to pay SEGI corp expenses so that no more dilution is needed to cover operating expenses.
I did checked as best as I could and it seems like no new shares have been issued in going on 2 years, there was also no change in the authorized shares.
He also said that his consulting business also serves as a pipeline for Sycamore deals and that his SILAU LLC did over 6 figures in 2017 and revenue will double by the end of 2018 he claims some of that business will make its way to SEGI.
Next I asked about the lawsuits and a criminal fraud investigation I read about on IHUB, his response was that the lawsuits were frivolous and without merit and were actually dropped the post he said was put there by some hater 4 years ago.
He made the point that if there was any real criminal investigation against him. It would not take any competent authority 3 months to come to a conclusion and that IHUB post is now 4 years old. He said its all totally what is now referred to as fake news. Makes sense to me.
The one real lawsuit he said was the result of a funding commitment that failed to deliver the money causing Sycamore to breach it’s contract. He says, that he is planing to launch a lawsuit against the company for non performance in the future. He also made a point of mentioning that he recently raised $1.2 million for a film project but did not give any more details.
To me, Sycamore led by Edward Sylvan has tons more upside than downside at these prices. I’ll continue to add to my position and trade the runs. It’s done very well for me.
In chatting with him it’s clear that he has something up his sleeve but is keeping his cards close to his chest. He did take responsibility for some of the missed opportunities and deadlines but says it’s like the fish that got away. He claims to have a lot of lines in the water and that’s its not easy but that I should keep watching.
Some of the most interesting things he said had to do with the movie studios and and blue chip stocks and that the deck is stacked against all of us.
he said quote: “The big studios don’t want small movies and producers to have any control over their own distribution because it takes the power away from the studios”
“The major financial news networks and investment banks hate talking about or featuring anything to do with penny stocks because it’s takes money away from the big stocks that they talk about and promote all day long”.
He said when it comes to stocks the greedy news media and the big investment banks have it in for the CEO’s of penny stock companies and the investors and traders who trade the shares.
he said quote: “When we promote our companies they come after us like we’re criminals while CNBC and the other channels bring on CEO”s and Analysts to pump up stocks on national TV and no one ever says a word. That’s total BS”
He said. quote: “As the CEO of Sycamore I have a very important function and the shareholders who invest in Sycamore provide much needed capital into small business and create jobs, small business is the engine that runs America, yet when it comes to our stocks they want to swat us like flies”.
“So they scare people into not investing in companies like mine. Who took over? the shady stock promoters. It’s no wonder so many people lose money trading penny stocks It’s not your fault. I blame the pump and dump guys. That’s the real greed in this industry”
I have to say, I can’t argue with that.
To me Edward Sylvan is as much of a self promoter as he is a stock promoter and that serves this stock very well. Most legit sub pennies don’t have a chance in hell to get featured by a major news media outlet yet he has somehow managed to get into a few with more to come according to him. I think we need more guys like him in the market.
The real win will come if he manages to land a monster deal and the market and press get wind of it. Who knows where it will send SEGI’s stock price. All I know is I will be on board for what could be a wild ride.
That for me will be my Box office Blockbuster.
In the meantime I’ll keep trading the SEGI runs and chatting with Edward Sylvan.
I know that there are other shareholders out there that have held Sycamore shares a lot longer than I have. What is your experience with Edward Sylvan over that period? Have you made any money? Are you still holding waiting for the big one? or have you moved on? Leave a comment below. I’d love to hear from you and GLTA.