I've been critical of allegedly steroid-pumping baseball player turned options trader turn TheStreet.com pundit Lenny Dykstra for awhile. I recently asked "Do you really want to take options trading advice from a guy who got his job as an investment guru at least in part because he sent Jim Cramer's sister a signed poster?"
Now Forbes is making a startling accusation: "Yet a close look at Dykstra's portfolio raises doubts about whether the baseball All-Star turned TheStreet.com (NASDAQ: TSCM) guru has been picking many of those stocks or relying on a seasoned stand-in."
The juicy dirt comes from a lawsuit filed against the former slugger by Doubldown Media, a publisher that had been collaborating with Dykstra on a newslettter: "At Dykstra's insistence, Doubledown began negotiations to pay Richard Suttmeier, a stock analyst, to provide Dykstra with research assistance for the Dykstra Report and who, upon information and belief learned subsequently, provided Dykstra lists of recommended stocks daily."
Suttmeier is a former writer for TheStreet.com's RealMoney site, and is an analyst with RightSide Advisors. According to the article, "FORBES compared Dykstra's buy recommendations as they appeared on TheStreet.com from Apr. 1 through May 1 with those in Suttmeier's weekly Sector Report during the same month and before. Among Dykstra's 17 buys, 11 had appeared days earlier in Suttmeier's newsletter."
This has all the makings of a big scandal for Dykstra and TheStreet.com which, it could be alleged, used a famous baseball player as a puppet to draw in traffic while many of the ideas came from someone else.
Lenny Dykstra: may have been busted by Forbes
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Reader Comments (Page 1 of 1)
6-12-2008 @ 10:57PM
T said...
So what?
Lenny decides which picks he puts his name on... lot's of these guys use paid research. Sounds like some of the good old boys from the financial press getting resentful and defending their turf.
6-13-2008 @ 10:42AM
bill said...
My issue with the Dykestra column is his methodology of selling his winners and letting his losers run. Exactly the opposite of all successful trading strategies.