Richard Suttmeier, a Wall Street vet accused by Forbes of doing baseball vet-turned-stockpicker Lenny Dykstra’s work for him, offers up a lengthy response, which we’re reprinting below. The short version: Sure, I help him screen stocks — but he makes the picks himself.
We’re not taking sides here, but the nice thing about Suttmeier’s response is that it conforms exactly to Forbes’ story, which wondered why so many Lenny’s picks (in his newsletter, not his column for TheStreet.com (TSCM)) also appeared in Suttmeier’s own newsletter. And it also wondered why Lenny allegedly asked a magazine publisher to help him pay Suttmeier a consulting fee. The only difference: Suttmeier says his assistance is above board and not unusual in any way, and Forbes suggests that it’s untoward in some way. You make the call.
Lenny Dykstra’s Stock Picks Are His Own
By, Richard Suttmeier, [email protected]
Lenny Dykstra makes his own stock picks! Sure I taught him how to read a chart, and my son Jason Suttmeier provides a Table of Technical Levels for a universe of about 100 stocks. That’s Lenny’s Roster. It’s Lenny who decides which stocks to put on the field of play. He knows how to pick great companies trading near 52-week lows. He uses moving averages to set his strategies. All that’s needed is a day of good news for a stock to give him a trading win.
My sector report is based upon fundamental ratings from Automated Stock Alerts (ASA), and value levels, pivots and risky levels, which are used to add to positions on weakness (value levels) and used to reduce positions on strength (risky levels). I pick stocks for Sector Report that trade near 52-week lows, which is a common thread with Lenny’s picks.
Lenny makes his own picks after reading tons of research notes from the most respected independent minds. He has become one of the best stock pickers after doing several years of homework. I can’t even explain how he uses his deep in the money call strategies.
Let me assure Forbes and any other financial blogger, that Lenny Dykstra makes his own stock picks, and bases his selections on the many newsletters he reads every day.
Sure I communicate with Lenny frequently. He’s my friend. Any similarity between Lenny’s picks and Richard Suttmeier’s Sector Report is that my report is one of Lenny’s many morning reads before he makes his own trading decisions.
With regard to Richard Suttmeier being a little-known strategist, I worked at major firms such as Bache in 1978 – 1981, where I became their first long bond trader. I formed the government bond division at LF Rothschild in 1981, and grew that business into primary dealer status with the New York Federal Reserve Open Market Desk in 1986. I formed a consulting firm Global Market Consultants in 1988 knowing that LF Rothschild would not be bailed out, as Bear Stearns was recently. I was US Treasury Strategist for Smith Barney 1991 to 1995 and Chief Strategist for the number one Municipal Bond Company in Florida , William R Hough in 1997 to 1999.. In 2003 to 2005 I was advisor to the Treasurer State of Ohio. I have been the President of the Society for the Investigation of Recurring Events (SIRE) since 2000.
I have appeared on financial TV shows since 1994 beginning as a substitute on CNBC for John Murphy in the segment called “Tech Talk.” In 2002 I had my own show called “Traders’ Club with Richard Suttmeier” on Yahoo Finance Vision, their most popular show. Remember those holiday talking stock shows on CNNfn? I was on for an hour on almost every one until CNNfn ceased operations.
It was after one of these CNNfn “Talking Stock” shows when Lenny Dykstra called me and said, “Hey Dude, can you teach me how to read a stock chart.” I did, and we have been friends ever since.