Wednesday, July 9, 2014

* CYNK - Is this the Most Egregious Capital Markets Scheme Ever?

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Original Post: 7-9-2014
CYNK is up 118.85%.  The Stock Quote Detail is included below.

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Update: 7-10-2014

Provided by Charles Schwab optionsXpress

Update: 7-11-2014
The stock has finally been halted.

Update: 7-25-2014
The stock has finally been opened.

Provided by Charles Schwab optionsXpress

As expected, the stock is down over 90% from its peak and 82% today.  It will go lower, eventually to near zero in my opinion.

Back to 7-11-2014 and the full story

Here is the SEC Release No. 72594 / July 11, 2014

Cynk Technology Corp., a development stage company, focuses on operating a social network. Its social network is based on showing the types of people the user is connected with and associated.

ZeroHedge brought  this to my attention via Twitter, so I dug a little deeper, basically b/c I couldn't believe what I read. But this seems to be true:

A 'social network' firm with 1 employee, $0 revenue, $0 in assets, six years old is now worth $6B (updated 7-10-2014) and is up ~30,000% (updated 7-10-2004) in two months. What?

7-10-2014: TechCrunch just caught on (albeit a day and a half late):
Tech Company With $39 In Assets Now Worth More Than $6B
Haven’t heard of CYNK? You are not alone. Despite having a valuation higher than Groupon’s, CYNK is an unknown. That’s because when it comes to being a real business, it isn’t. The ‘technology’ firm is in the midst of what appears to be a scheme to bounce its shares north, swindling those who buy into the company at inflated prices to the benefit of those orchestrating its rise.

Here's the stock chart.

Provided by Charles Schwab optionsXpress

We can see it is up ~16,000% to a market cap above $3B in less than two-months.
Update: One day later (7-10-2014) the stock is trading above $20 with a market cap > $6 billion.

Why is this weird (beyond the obvious)?

The company has:
* Revenue: $0
* Assets: $39 (no zeros omitted)
* 1 Employee
* Existed since 2008

With all due respect, what's going on here?

Full article from Seeking Alpha here:
CYNK Technology: Promoters Push Market Cap To $655 Million Despite $39 In Assets And No Revenue; 100% Downside

Note the date of that article is June 18th, 2014.

I called "Investor Relations" at 424.225.2783.  First attempt got a busy signal. Second attempt straight to voicemail.


I must be missing something, right? Help?

This is trade analysis, not a recommendation.

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1 comment:

  1. Ophir, I think this is a new twist on the pump and dump, specifically designed to lure retail shorts to their death. Look at this article from desperately seeking alpha, I think it traded down to 2 dollars around this time :

    which is deeply similar to this article about LOTE from a while back: