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Market Top? Meet The $1 Billion Company With Zero Revenues

Tyler Durden's picture




 

Submitted by Tim Price via Sovereign Man blog,

Lord Overstone said it best. “No warning can save people determined to grow suddenly rich.”

Case in point - CYNK Technology Corp, a listed company that as of this morning has a market capitalization in excess of $1 BILLION.

According to official filings, the social media development company had one employee, no website, no revenue, no product, and no assets.

What has effectively united this company with prudent investors is today’s central banker.

Andy Haldane, the chief economist for the Bank of England, conceded last week that ultra-accommodative monetary policy had “aided and abetted risk-taking” by investors.

But to the central bank, it was worth using higher asset prices to stimulate the economy:

“That is how [monetary policy] is meant to work. That’s why we did it.”

Central bankers, of course, will not be held accountable when the crash finally hits, even if the accumulated dry tinder of the boom was almost entirely of their own creation.

Last week the Bank for International Settlements, the central banker for central banks, issued an altogether more circumspect analysis of the world’s current financial situation, in their annual report.

It concluded with an entirely welcome sense of caution against monetary policy’s “diminished effectiveness and side effects.”

Translation: ZIRP (Zero Interest Rate Policy – and in the case of the European Central Bank, which has taken rates negative, NIRP) is no longer working – if it ever did.

Hyper-aggressive monetary policy has side effects. Getting out of this mess is not going to be easy, and it’s going to be messy.

In an interview with fund manager John Hussman, Professor Robert Shiller summed up the situation in the markets right now:

“I am definitely concerned. When was [the cyclically adjusted P/E ratio or CAPE] higher than it is now? I can tell you: 1929, 2000 and 2007.”

And Hussman:

“The central thesis among investors at present is that they have no other choice but to hold stocks, given the alternative of zero short-term interest rates and long-term interest rates well below the level of recent decades…”

 

“Investment decisions driven primarily by the question ‘What other choice do I have?’ are likely to prove regrettable. What we now have is a market that has been driven to one of the four most extreme points of overvaluation in history. We know how three of them ended.”

If one chooses to invest at all, invest on the basis of valuation. Pay money. Take choice.

As an example of the sort of valuations currently available away from the herd, consider the following. You can buy the US S&P 500 index today with the following metrics:

Price / earnings: 18.2
Price / book: 2.76
Dividend yield: 1.89%

Meanwhile, Greg Fisher in his Halley Asian Prosperity Fund (which is currently closed) is buying quality businesses throughout Asia on far more attractive valuations:

Average price / earnings: 7
Average price / book: 0.8
Average dividend yield: 4.5%.

But the realistic prospect of growth is also on the table. The fund’s average historic return on equity stands at 15%.

The conclusion seems clear to us.

 

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Mon, 07/07/2014 - 14:53 | 4932530 Hohum
Hohum's picture

Stock market investing is for those who cannot create wealth.  Which, unfortunately, is most of us.

Mon, 07/07/2014 - 14:56 | 4932542 max2205
max2205's picture

Dime a dozen

 

Zillow no earnings 5 bill market cap

Talk about undervalued!

Mon, 07/07/2014 - 14:59 | 4932557 Pladizow
Pladizow's picture

“But the most absurd and preposterous of all, and which showed, more completely than any other, the utter madness of the people, was one started by an unknown adventurer, entitled “A company for carrying on a undertaking of great advantage, but no body to know what it is.” Were it not the fact stated by scores of credible witnesses, it would be impossible to believe that any person could have been duped by such a project. ……. Crowds of people beset his door, and when he shut up at three o’clock, he found that no less than 1000 shares had been subscribed for, and the deposits paid. He was philosopher enough to be contented with his venture, and set off the same evening for the continent. He was never heard of again.” - Charles Mackay writing about the South Sea Bubble in Extaordinary Popular Delusions and the Madness of Crowds. – 1841.

Mon, 07/07/2014 - 15:01 | 4932568 knukles
knukles's picture

Talk about stunning....
Here's a Progressive's take on money.
Mint all you want, just don't make any debt so then are we talking about and ......

http://www.opednews.com/Petition/Commemorate-President-Linc-by-Scott-Bak...

Mon, 07/07/2014 - 15:07 | 4932572 lordylord
lordylord's picture

Revenue isn't everything. Heck, the US government just collected $1 trillion in revenue this year. Although, they did have to point a gun at your head to get it! Now tell me that government isn't just a bunch of thugs.

Mon, 07/07/2014 - 15:12 | 4932616 disabledvet
disabledvet's picture

We did have to point a gun at someone else's head though.

Mon, 07/07/2014 - 15:32 | 4932722 Eirik Magnus Larssen
Eirik Magnus Larssen's picture

Simplistic. Police, fire and maintenance departments don't pay for themselves, yet benefit everyone. The same could be said of universal healthcare.

Mon, 07/07/2014 - 15:57 | 4932842 aardvarkk
aardvarkk's picture

Take your "universal" healthcare and stuff it up your ass.  And you can do the same with any FEDERAL police, fire and maintenance.  If I can't go down to a desk downtown and complain about how they're wasting money or how their employees are jackasses who should be fired, then they don't serve me.

There's a reason why the original federal government was strongly limited to a very few key functions.  And there's a reason why the federal government does a crappier and crappier job the bigger it gets and the more functions it takes on.

Mon, 07/07/2014 - 16:46 | 4933013 lordylord
lordylord's picture

Eirik Magnus Larssen hasn't answered so I will answer for him using the argument of his people:  Because the children

But in all seriousness, there is a reason that the government is not transparent.  And any idiot knows why that is...WASTE, INEFFICIENCY, and FRAUD.  Eirik Magnus Larssen just has his head up his self righteous ass.

Mon, 07/07/2014 - 20:48 | 4933852 Save_America1st
Save_America1st's picture

The conclusion?  Get outta the banking system and keep on stackin' the phyzz, bitchez!!!

Tue, 07/08/2014 - 01:15 | 4934480 Alhazred
Alhazred's picture

Buy physical and get it in your hands.

I use BGASC because they ship next day for wires. (I used to use APMEX but BGASC is lower price at the same service). JM bullion just sat on my money for 2 weeks.

Mon, 07/07/2014 - 16:07 | 4932843 deflator
deflator's picture

 How do we know, "how much" police, fire and maintenance departments benefit everyone? Enough that they should be the fastest growing class of millionaires with pay,  pensions, healthcare plans well above and beyond what private sector counterparts get?  There is zero accountability in the public sector while in the private sector someone is counting and comparing every single thing that you do. Public sector hierarchies incentivize doing less because the only way that you can lose your job is with a major fuckup--if you ain't doing anything, you ain't fuckin up.

Mon, 07/07/2014 - 20:35 | 4933795 Redneck Hippy
Redneck Hippy's picture

Geez, there aren't any milliionaire cops or firemen around here.  In fact, we have a volunteer fire dept that doesn't even get paid. 

You must be one of them Yankees.

Mon, 07/07/2014 - 17:10 | 4932978 CCanuck
CCanuck's picture

Lordylord,

We could only dream to attain the current government's level of Thuggary, in fact I insult the cruel vicious nature of the Gov calling it Thuggary.

Hugs & Kisses

Thugs of the World.

Mon, 07/07/2014 - 20:24 | 4933746 newbie vampire
newbie vampire's picture

Youse guys are always putting down the authorities. I have full faith and confidence in President Obama, Congress and the Federal Reserve.  I have so much confidence, I'm gonna vote for President Obama for a 3rd consecutive term.

And stop criticising Mr Yellen, she's working her guts out trying to capitalize all them bad borrowings and stick it into your 401k. 

Mon, 07/07/2014 - 15:01 | 4932567 Rainman
Rainman's picture

AMZN expects to shrink its P/E from 541 to 96 in the next 5 months ... strong buy !

Mon, 07/07/2014 - 15:14 | 4932627 disabledvet
disabledvet's picture

Well...compared to the overhead of Wal Mart it should is. They're sportin' a p/e of 5 probably on revenue of 400 billion...yet they still look like The Biggest Loser to me.

Tue, 07/08/2014 - 00:20 | 4934398 Rhetorical
Rhetorical's picture

Thats funny didnt know they were valued so high and didnt have revenue. Ive been using it to find a rental and I like it.

Tue, 07/08/2014 - 12:23 | 4933959 Miggy
Miggy's picture

Part Time.

 

John 3:16

Mon, 07/07/2014 - 14:53 | 4932531 SoilMyselfRotten
SoilMyselfRotten's picture

The next momo stock?

Mon, 07/07/2014 - 15:03 | 4932576 Gene Parmesan
Gene Parmesan's picture

If it's pronounced "sink" then I'd say somebody's playing a joke with this one.

Mon, 07/07/2014 - 15:09 | 4932603 Cthonic
Cthonic's picture

Probably pronounced 'cynic'.

Tue, 07/08/2014 - 05:08 | 4934625 StandardDeviant
StandardDeviant's picture

My thoughts exactly; what a great symbol for a social networking company!  But it appears to be for real.  Party like it's 1999...

Tue, 07/08/2014 - 03:00 | 4934564 Dr Benway
Mon, 07/07/2014 - 14:53 | 4932532 TideFighter
TideFighter's picture

one-eyed dog sock puppet comes to mind...

Mon, 07/07/2014 - 14:55 | 4932536 Agent P
Agent P's picture

"According to official filings, the social media development company had one employee, no website, no revenue, no product, and no assets."

That's it...I'm going public.

Mon, 07/07/2014 - 15:12 | 4932617 JohnG
JohnG's picture

 

 

I am too.  I am starting a company to investigate thinking about starting a social media strategy for making step two of the underpants gnome business model a reality. 

Should make billions, and I'll start it after I get back from the Bahamas.

Mon, 07/07/2014 - 21:10 | 4933939 rubiconsolutions
rubiconsolutions's picture

"That's it...I'm going public."

Me too. Stock symbol - IFU (I Fooled You.....or if you like I F***** You)

Mon, 07/07/2014 - 14:55 | 4932539 Quinvarius
Quinvarius's picture

No other choice but stocks?  People actually think that?  The only choice has been and remains gold.  Paper up or down tomorrow, it doesn't matter.  Extricate your wealth from this insane asylum before it disappears. 

Mon, 07/07/2014 - 15:02 | 4932571 Postal
Postal's picture

Gold is a barbaric relic that doesn’t provide a return. /sarc

Mon, 07/07/2014 - 15:22 | 4932667 Panafrican Funk...
Panafrican Funktron Robot's picture

And there you have the reason why people who actually follow Islam/other religions of wisdom (rather than using them as tools for political/economic ends) are so fond of gold, because it's a store of value that does not involve usury.  That's what investment returns ultimately are in a fractional reserve system, returns on debt.

Mon, 07/07/2014 - 15:06 | 4932585 TideFighter
TideFighter's picture

It does matter. Paper up, you liquidate (sell) and buy the things that you would have to trade gold for if it is TEOTWAWKI. If you have just held gold, you could be down 30% or more. A little gold is fine, but thinking you're going to amass "great wealth" in the transfer of gold to assets is just plain fucking stupid. A few 7.62's and some good ammo is more of a safety net. Some tillable gound with a hand water pump, long term food storage, maybe. Goldbugs will die before the liquidity runs dry. Don't be wishing for a black swan event too soon, there is no near future event whereas gold will be exchanged, on a exponential basis, for hard assets. Just ain't gonna happen. 

Mon, 07/07/2014 - 15:24 | 4932671 Panafrican Funk...
Panafrican Funktron Robot's picture

So what of the people who are well prepared, as you partially described, and have excess productive activity that they wish to store in something of stable value?  

Mon, 07/07/2014 - 16:10 | 4932890 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Gold is like storm windows.

Mon, 07/07/2014 - 14:57 | 4932549 medium giraffe
medium giraffe's picture

Long pig-lipstick.

Mon, 07/07/2014 - 15:17 | 4932644 disabledvet
disabledvet's picture

Said that six months ago actually. "And pigs indeed can fly." 25 billion for Jim Beam! 5 billion for a pig farm!

Somebody's more than just getting rich here.

Mon, 07/07/2014 - 16:53 | 4933049 Pig Circus
Pig Circus's picture

I resemble that remark.

Mon, 07/07/2014 - 15:03 | 4932574 yogibear
yogibear's picture

Now that's DOT COMing! Ponzi to the max!

Mon, 07/07/2014 - 15:27 | 4932700 toady
toady's picture

That's what I think every time I hear another one of these scams. 90% of that .com stuff was a guy with a 386 desktop.

Mon, 07/07/2014 - 15:03 | 4932577 starman
starman's picture

WWW.Sink.com There.

Mon, 07/07/2014 - 15:09 | 4932591 yogibear
yogibear's picture

Invent a catchy social media name and IPO it. Like pets.com did in the 90's. History repeats.

Plenty of fiat drunken fund managers out there to buy.

Mon, 07/07/2014 - 15:07 | 4932594 jubber
jubber's picture
CYNK Technology: Promoters Push Market Cap To $655 Million Despite $39 In Assets And No Revenue; 100% Downside http://seekingalpha.com/article/2274553-cynk-technology-promoters-push-m...
Tue, 07/08/2014 - 01:05 | 4934466 Suisse
Suisse's picture

Penny stock pump and dump. Just like what happens with most of the alternative cryptocurrencies. 

Mon, 07/07/2014 - 15:08 | 4932599 IANAE
IANAE's picture

This is an awesome find... someone should widely distribute this to the MSM.

In case anyone thinks this Belizian start-up has a tech heavy b/s with no revenues, listed assets (via Yahoo Finance) at 12/2012 were $49K (yesss, that's a K ) of which $45K was cash, and which eroded to $0 (zero) as of 12/2013.

 

 

Mon, 07/07/2014 - 15:11 | 4932612 yogibear
yogibear's picture

Still chance to do it in the US market. IPOs are hot.

Mon, 07/07/2014 - 15:09 | 4932602 Itchy and Scratchy
Itchy and Scratchy's picture

Dividend play!

Mon, 07/07/2014 - 15:13 | 4932622 hazenyc
hazenyc's picture

ahem, CYNK is currently worth $1.5Billion. It's $500M more valuable today than yesterday. 

Mon, 07/07/2014 - 15:14 | 4932624 Duc888
Duc888's picture

 

 

"CYNK Technology Corp, a listed company that as of this morning has a market capitalization in excess of $1 BILLION."

 

I love it.

 

"In case anyone thinks this Belizian start-up has a tech heavy b/s with no revenues, listed assets (via Yahoo Finance) at 12/2012 were $49K (yesss, that's a K ) of which $45K was cash, and which eroded to $0 (zero) as of 12/2013."

 

 

So your saying now is the time to buy the fucking dip?

/sarcasm

Mon, 07/07/2014 - 15:13 | 4932625 NOTaREALmerican
NOTaREALmerican's picture

Animal Spirits, FTW!!!

Mon, 07/07/2014 - 15:33 | 4932733 ebworthen
ebworthen's picture

BTFATH!  To the moon!  DOW 20,000 by Christmas 2015!

Mon, 07/07/2014 - 15:15 | 4932636 IANAE
IANAE's picture

Would also be interesting to have someone of a regulatory persuasion look into this one...how does a zero asset/zero revenue stock get bid up 47% in one day, and what do the bidders think they're buying?

Mon, 07/07/2014 - 15:19 | 4932649 disabledvet
disabledvet's picture

The people buying it probably don't even know.

Mon, 07/07/2014 - 15:25 | 4932678 hedgeless_horseman
hedgeless_horseman's picture

 

 

The people buying investing in it probably don't even know.

CALPERS? 

Mon, 07/07/2014 - 15:25 | 4932682 Amish Hacker
Amish Hacker's picture

My question is, what does the (one) employee do? Just stunning. If you were looking for a horse on its way to the glue factory, a "social media company" with no website would probably be it.

Mon, 07/07/2014 - 15:45 | 4932790 IANAE
IANAE's picture

My question is, what does the (one) employee do?

 

guessing ...sell stawks.

Mon, 07/07/2014 - 17:03 | 4933012 CCanuck
CCanuck's picture

Do you know how hard it is making stawks, Fuck You I worked hard getting CYNK off the ground.

 

Hugs from the Cancer Ward,

Jamie, (I'm richer than you) Dimond

 

P.S  Pay no attention to DeweycheatemHowe comment below, he is a tinfoil'n truther ya know.

Tue, 07/08/2014 - 07:56 | 4934778 Global Observer
Global Observer's picture

Not sure what role regulators have here. Are you suspecting that the company is lying about its revnue ($ 0) or assets ($ 39) or some insider trading going on? Or are you suspecting some institutions with fiduciary obligations are investing in OTC stocks?

It looks more like a handful of guys holding most of the shares are trading with each other pushing the prices up until they can offload some of them to greedy idiots who are suckers for such play. With such fundamentals as this company only players involved can be greedy gamblers. Let them gamble. What do the rest have to lose?

Mon, 07/07/2014 - 15:21 | 4932662 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Can you say money launderer for wall street. They got nowhere else to go with the money except recycle it through shell company fronts like this to keep it inflated. You can't pull the money out at this point, the whole deck of cards will collapse.

Mon, 07/07/2014 - 15:22 | 4932663 buzzsaw99
buzzsaw99's picture

Greg Fisher in his Halley Asian Prosperity Fund (which is currently closed)...

dammit i want to buy some! fuck fuck fuckedy fuck!!

Mon, 07/07/2014 - 15:26 | 4932690 ebworthen
ebworthen's picture

Can I still get some Pets.com stock?

Mon, 07/07/2014 - 17:38 | 4933223 bluskyes
bluskyes's picture

How about some "Value America" NAS VUSA

Value: It's in our name.

Mon, 07/07/2014 - 15:26 | 4932692 Dolus
Dolus's picture

Aww! That's nothing there are biotechs that have a 10 billion marketcap with negative cash flow. 

Mon, 07/07/2014 - 15:31 | 4932719 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

http://www.otcmarkets.com/stock/CYNK/profile

Incorporated In: NV, USA Year of Inc. 2008 Employees Not Available Company Officers/Contacts Howard Berkowitz President Brian Blaszczak Consultant Company Directors Not Available Company Notes
  • Formerly=Introbuzz until 7-2013
Service Providers

Accounting/Auditing Firm

Not Available

Legal Counsel Harold P. Gewerter, Esq. Ltd.
5536 S. Fort Apache Rd.
Suite 102
Las Vegas, NV, 89148
United States

...

 

Looks like this company got it's start in the gambling capital of the US. What could possibly go wrong here....

 

Mon, 07/07/2014 - 15:49 | 4932805 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

And upon further inspection

http://site.introbiz.com/

No wonder he needs a billion dollars to offset such low networking costs like $50 to talk directly to Tom Cruise. Scientologists certainly don't come that cheap and don't rub elbows with peons with no money.

Mon, 07/07/2014 - 15:56 | 4932836 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

And even upon further digging that $50 only buys you contact information to his booking agent, etc. What a scam....

I need to change my last name to make it sound more jewish then claim I am connected to hollywood celebs and start a social networking company selling information anyone with a pea sized brain and google (even in the EU!) could find...

Mon, 07/07/2014 - 16:56 | 4933057 IANAE
IANAE's picture

Better call Saul...

Mon, 07/07/2014 - 17:15 | 4933128 Matt
Matt's picture

Introbizz and introbuzz are the same company?

bIZZ and bUzz.

Mon, 07/07/2014 - 18:05 | 4933311 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

RTFW (read the fucking website), especially the small print on the bottom that says copyright 2014 CYNK Technologies Corp.

Mon, 07/07/2014 - 15:37 | 4932750 syntaxterror
syntaxterror's picture

This means TWTR is worth at least $500 billion.

Mon, 07/07/2014 - 15:37 | 4932753 kchrisc
kchrisc's picture

The one employee of CYNK Technology Corp (CYNK.PK) is:

Mr. Marlon Luis Sanchez is Chief Executive Officer, President, Secretary, Chief Financial Officer and a director of Cynk Technology Corp. ( formerly Introbuzz). Mr. Sanchez elected as a member of the Board of Directors on April 17, 2013. On April 18, 2013 he was appointed as Chief Executive Officer, President, Secretary, Chief Financial Officer and a director of Introbuzz, Inc. From 2002 to present, Mr. Sanchez has been a Partner in Sanchez Medical Services, which provides comprehensive medical services to the Southern California market. Mr. Sanchez's responsibilities include direct oversight of administrative operations. Sanchez Medical Services also has a division dedicated to the ever growing Medical Tourism Industry. Mr. Sanchez is the primary spokesperson for the Medical Tourism Industry council in Tijuana,Mexico. Mr. Sanchez is a graduate of San Diego State University with a degree in Business Administration Marketing. Mr. Sanchez has not held directorship during the past five years in any other publicly traded company.

 

President, CEO, CFO, Secretary, Treasurer &
CAO Marlon Luis Sanchez
Corporate headquarters Las Vegas, Nevada
Mon, 07/07/2014 - 15:51 | 4932806 all-priced-in
all-priced-in's picture

Is he the guy that invented the "Dirty Sanchez" ?

 

 

 

 

 

 

 

 

 

 

 

Mon, 07/07/2014 - 17:02 | 4933045 CCanuck
CCanuck's picture

Thanks for the "Dirty Sanchez"nasal wash, orange juice does a great job on my sinus....

 

 

Note to self: Do not drink and read at the hedge...

Mon, 07/07/2014 - 15:42 | 4932774 pakled
pakled's picture

"According to official filings, the social media development company had one employee, no website, no revenue, no product, and no assets."

 

Nice work if you can get it.

Mon, 07/07/2014 - 15:49 | 4932800 hegemony
hegemony's picture

35 thousand shares traded today and up over 50%..... just wait till the real volume comes in. I'm going to be rich. As long as the seec gets paid there fees they allow shit like this to go on forever

Mon, 07/07/2014 - 16:12 | 4932902 Chuck Knoblauch
Chuck Knoblauch's picture

Good article.

Keep them coming.

This company is not the only exception.

Mon, 07/07/2014 - 16:13 | 4932911 Homunculus
Homunculus's picture

It's going to be epic on the downside too!

 

http://seekingalpha.com/article/2274553-cynk-technology-promoters-push-m...

 

 

Mon, 07/07/2014 - 17:17 | 4933136 Matt
Matt's picture

Downside is way less potential than upside. It is already up 10,000% but it can only go down 100%.

Mon, 07/07/2014 - 17:00 | 4933073 Comrade de Chaos
Comrade de Chaos's picture

WOW, this smells fishy - 

a) Used to be, "intraBiz' - http://www.sec.gov/Archives/edgar/data/1540160/000000000012008723/filena...

 

b) Meet the new CEO - 

http://investing.businessweek.com/research/stocks/people/person.asp?pers...

 

c) Who poses as a doctor in here - 

https://www.facebook.com/pages/Sanchez-Medical-Services/550787804939532

 

 

f SEC is asleep at the wheel again ... 

Mon, 07/07/2014 - 18:01 | 4933287 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Somebody got their information crossed since there seems to be more than one introbuzz.

http://www.bizapedia.com/nv/INTROBUZZ.html

Probably why they changed their name to CYNK. There was another introbuzz out of Nevada tied to Blaque Technologies. Not uncommon for businesses with the same name and slightly different spelling getting registered at the same time then subsequent problems later on or older businesses no longer active not filing the proper paperwork to let the state know they are no longer an active business causing problems. But Bloomberg is the pinnacle of accurate and factual unbiased financial journalism.

The one tied to Blaque Technologies is related to that SEC filing here.

http://www.sec.gov/Archives/edgar/data/1540160/000000000012008723/filena...

They are both different companies. Only one is left.

This is what happens when you have multiple companies with the same or similiar names get crossed.

It took me all of a minute using a search engine not named google to sort all this out and I don't even get paid to do this. Bloomberg really has no excuse since they get paid to do this and the peanut gallery (myself included) doesn't.

Mon, 07/07/2014 - 17:34 | 4933213 bluskyes
bluskyes's picture

This is the social media company, whose job is creating social media buzz about itself.

The stock market is one big computerized circle jerk - without the circle.

Mon, 07/07/2014 - 18:11 | 4933324 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

http://www.hotstocked.com/article/87282/cynk-technology-corp-otcmkts-cyn...

Someone else is paying attention....

A couple of weeks ago, CYNK Technology Corp (OTCMKTS:CYNK, CYNK message board) absolutely exploded onto the penny stock scene. Some people on Twitter started talking about the company and, as a result investors traded more than $400 thousand worth of shares in six and a half hours. At the same time, the ticker jumped from its previous close of $0.06 and surged all the way to a mind-bending $2.25.

At that point, CYNK's market cap hovered around $660 million and when we covered the violent climb, we mentioned that the company doesn't really have what it takes to justify that sort of valuation. We weren't the only ones sharing this opinion. A Seeking Alpha article appeared a few hours after our coverage and its author (who disclosed a short position) also agreed that CYNK, with its $39 in total assets, doesn't deserve its market cap.

Plenty of people expected to see the stock tumbling down to the sub-dollar levels, but surprisingly or not, it managed to hang on. What's more, on June 23, it jumped once again and added another 90% to its value. This was followed by a crash, but the significant dollar volumes meant that a lot of people were paying attention.

That, apparently, was enough for yet another jump and yet another crash. On Monday, CYNK surged up the charts and gained a whopping 111%. It hit an all-time high of a mind-boggling $6.75 and finished the day at $6.25. Yesterday, however, it annihilated 51.36% of its value which means that it currently stands at $3.04 per share.

As you can see, the performance is absurdly inconsistent and yet, judging by the buzz around the social networks and discussion boards, some people believe that this is about to change. Is this really the case, though?

We're about to find out. But while we're waiting, we might as well take a look at the company once more and see if anything has changed.

The market cap has. Even after yesterday's crash, it stands at a ridiculous $1.2 billion. At the same time, CYNK's latest financial report is still the one covering the quarter ended March 31 and it still says that the Belize-based company has $39 in total assets.

On the bright side, their website is now working (which wasn't the case when we covered them previously). On June 27, CYNK announced that their IntroBiz portal is now back up and running and that it's been moved to a new server which is better suited to cope with the expected traffic flow. This means that we can open the website and see what CYNK's business plan is.

The home page is full of pictures of celebrities and when you click on each one of them, CYNK invite you to buy contact information. More specifically, "emails and phone numbers to the artist's talent agent, publicist, legal representative, etc.".

Considering the widespread use of Google Inc (NASDAQ:GOOG)'s powerful search engine nowadays, this revenue generation plan seems a bit strange, but, in any case, it might just work and CYNK might just be able to show us something more significant in their future reports. Until that happens, careful research and consideration of all the risks (judging by the wild swings, there's a lot of them) is absolutely essential.

Half an hour after today's opening bell, CYNK is another 10% down.

...

Apparently this guy is thinking the same things I am and I just stumbled on this article now using a search engine not named google aka duckduckgo. The only difference is I don't see this business model working at all and someone is doing something that rhymes with hump and we are on the p part, d comes next.

 

Mon, 07/07/2014 - 18:41 | 4933338 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

And voila.

http://www.hotstocked.com/article/86382/cynk-technology-corp-otcmkts-cyn...

According to the Q1 report, CYNK is a social network company, but they have yet to hire a web designer who would asses and fine tune their current website (the address of which is not mentioned anywhere). This is going to be a bit difficult considering the figures found in the aforementioned report. Here's what CYNK had on March 31:

  • total assets: $39 in cash
  • total liabilities: $51,611
  • NO revenue since inception
  • quarterly net loss: $6,241

You can see that the financials aren't really suited to a company whose current market cap stands at around $655 million. And that's not the only thing that could depress CYNK's share price.

If you read through the filings carefully, you'll see that back in August 2012, the company sold 1,086,000 free trading shares at $0.05 per share. You'll also see that in June 2013, CYNK effectuated a 75 for 1 forward split.

This means that right now, thirty unnamed investors hold 81,450,000 unrestricted shares for which they paid just $54,300. As you can see, there isn't a whole lot that could urge the said investors to cling on to their holdings.

...

I'm sure there is nothing fishy going on here and doesn't require the SEC to look into it....

I'm sure those 30 unnamed investors didn't collude to punk the HFT algos using Twitter to pump this turd for starters.

 

Mon, 07/07/2014 - 18:42 | 4933431 firestarter_916
firestarter_916's picture

Any on here including the Admin for ZH know how the hell to stop the stupid scripts from running in the background. It's to the point where I can't even use my laptop because that script runnings non stop and takes up enourmous amounts of space and processor capicity.  I think it's shockwave but I disabled it and somehow ZH resurrects it. Damn!

Mon, 07/07/2014 - 18:43 | 4933435 firestarter_916
firestarter_916's picture

Any on here including the Admin for ZH know how the hell to stop the stupid scripts from running in the background. It's to the point where I can't even use my laptop because that script runnings non stop and takes up enourmous amounts of space and processor capicity.  I think it's shockwave but I disabled it and somehow ZH resurrects it. Damn!

Mon, 07/07/2014 - 21:05 | 4933920 Palladin
Palladin's picture

Long time FireFox/AdBlock user, but got spammed here on Z/H the other day. Sent the report to AdBlock and they fixed the problem.

Take a look at the report that was generated by AdBlock and the offending series of ads.

It's really astonishing to see all the crap that is going on behind the scenes on this, or for matter any web page.

https://reports.adblockplus.org/be97d056-641a-476e-9b2f-20643ddd41a8#tab...

Along with AdBlock you might want to consider Ghostery to block trackers.

Mon, 07/07/2014 - 23:48 | 4934351 the0ther
the0ther's picture

The ultimate defense is a hosts file that immediately blocks those requests.

Wed, 07/09/2014 - 17:33 | 4941032 FiatFapper
FiatFapper's picture

Don't use AdBlock, it now whiltelists ads defeating the whole purpose; there's a fork called AdBlock Edge that blocks all ads.

Also, use ghostery for FF.

hth

Mon, 07/07/2014 - 19:11 | 4933540 optioneer
optioneer's picture

Not to worry - the stock gets a 35% on the Motley Fool Guru Analysis.

RELATIVE STRENGTH: [PASS] 

The investor must look at the relative strength of the company in question. Companies whose relative strength is 90 or above (that is, the company outperforms 90% or more of the market for the past year), are considered attractive. Companies whose price has been rising much quicker than the market tend to keep rising. CYNK, with a relative strength of 99, satisfies this test. 

Read more: http://www.nasdaq.com/symbol/cynk/guru-analysis/fool#ixzz36pLgV3gJ

Mon, 07/07/2014 - 20:45 | 4933831 FredFlintstone
FredFlintstone's picture

Funny, never could stand those Motley Fools.

Mon, 07/07/2014 - 19:44 | 4933628 Sun and Moon
Sun and Moon's picture

May not have revenues, but it has a great ticker symbol. Is CYNK pronounced "SINK"?

Mon, 07/07/2014 - 19:50 | 4933638 bigrooster
bigrooster's picture

It is in Vegas!  This is just fucking insane.  The best part is "The Company intends..."  Is that all it takes to go public!  Fuck all of us wasting time commenting here on ZH idiots for not thinking of this.

 

CYNK Technology Corp Formerly known as Introbuzz. Cynk Technology Corp., formerly Introbuzz, Inc., is a development stage-company. The Company intends to develop a social network business. Social networks are Web based services that allow individuals to post a profile and link their profile to other friends and organizations. The Company intends to develop a database of professional and other business persons, as well as other interested persons in providing and utilizing contacts. As of November 14, 2012, the Company had not generated any revenue. https://thomson.cache.wallst.com/img/dottedLine.gif); background-position: 0% 100%; background-repeat: repeat-x;">Shares Outstanding https://thomson.cache.wallst.com/img/dottedLine.gif); background-position: 0% 100%; background-repeat: repeat-x;">291.4M https://thomson.cache.wallst.com/img/dottedLine.gif); background-position: 0% 100%; background-repeat: repeat-x;">Institutional Ownership https://thomson.cache.wallst.com/img/dottedLine.gif); background-position: 0% 100%; background-repeat: repeat-x;">--% https://thomson.cache.wallst.com/img/dottedLine.gif); background-position: 0% 100%; background-repeat: repeat-x;">Market Cap https://thomson.cache.wallst.com/img/dottedLine.gif); background-position: 0% 100%; background-repeat: repeat-x;">1.0B https://thomson.cache.wallst.com/img/dottedLine.gif); background-position: 0% 100%; background-repeat: repeat-x;">Last Stock Split None https://thomson.cache.wallst.com/img/dottedLine.gif); background-position: 0% 100%; background-repeat: repeat-x;">None Marlon Luis Sanchez President, Chief Executive, Chief Financial Officer & Secretary Address: Suite 500 3960 Howard Hughes Parkway,LAS VEGAS,NEVADA 89169
Mon, 07/07/2014 - 20:24 | 4933751 Lmo Mutton
Lmo Mutton's picture

Sweet.  Maybe I can finally swing a deal to sell that CKYS I got brutally raped on.

Mon, 07/07/2014 - 20:46 | 4933834 FredFlintstone
FredFlintstone's picture

The wolf of wall street is at it again.

Mon, 07/07/2014 - 20:58 | 4933894 SweetDoug
SweetDoug's picture

Stunned…

 

https://ca.finance.yahoo.com/q?s=CYNK

 

Up 1.45 bucks today!?

 

Run for the hills.

 

•?•
V-V

Mon, 07/07/2014 - 21:55 | 4934030 Palladin
Palladin's picture

This type of move is becoming commonplace in Wall Street lately. Take a look at NEWL. It traded 100 million shares today with a range of $0.10-$0.20, that's right 10 cents to 20 cents. It had been trading at $0.50 but fell to a dime today. But that's not all. In the last year it had 4, count em 4 reverse splits. And the float?? With all the reverse splits, less than 3Million shares. So today, this stock traded the equivalent of 30 times the float. Today.

Consider this.

If you bought 100,000 shares of this stock on October 15, 2013 for $0.08 it would have cost you  $8,000.00

How many shares do you think you would have 8 months later on June 19, 2014 ?

With the 4 reverse splits, (3 x 15 x 10 x 50 = 22,500) your 100,000 shares would be equal to 4.44 split adjusted shares on June 19, 2014 and at a closing price of $0.50 your $8,000.00 would now be worth $2.22

Put another way, the last price on June 19, 2014 of $0.50 split adjusted (0.50/22500) is $0.000022 per share, The trading volume of 11,414,6000 shares represents a nominal trading dollar value of $251.10 split adjusted.

Fortunately somebody over at Nasdaq put some new batteries in one of their calculators and figured this out  and halted trading in the stock. But after a few days it's open again.

http://finance.yahoo.com/q/hp?s=NEWL+Historical+Prices

Last week, CAMT traded an average of 100K shares per day. Today 7/7/14 the stock of CAMT traded 20 Million shares at 5.02 1.82 (56.87%) on some lame news. All you will hear from the MSM, the SEC and all the other clueless reporters would be something like this. "Investors piled into CAMT today, on heavy volume." No one mentions it's 200 times the normal volume. You just have to ask yourself how any sane person can justify these volumes and percentage price moves, that is unless you factor in the HFT Tractor Beam. CAMT's float? 13Million shares, so it traded the equivalent of 150% of the float. Today.

http://finance.yahoo.com/q/hp?a=&b=&c=&d=6&e=8&f=2014&g=d&s=camt&ql=1

 

.

Tue, 07/08/2014 - 00:34 | 4934418 nathan1234
nathan1234's picture

CYNK or Swim !

More like Drown

Tue, 07/08/2014 - 01:48 | 4934511 luftmensch
luftmensch's picture

CYNK is a simple penny stock pump and dump using paid promoters. In a way you can't blame them, even Amazon at 150b cap hardly has profits, why wouldn't someone else want to get in on the game..

Tue, 07/08/2014 - 07:58 | 4934784 o2sd
o2sd's picture

When my wife suggested I should use my knowledge to create my own securities fraud, I told her that doing the securities fraud is the easy part, it's not going to jail that is the hard part. For that, you need connections.

 

Wed, 07/09/2014 - 11:01 | 4939519 prudent1nvestor
prudent1nvestor's picture

CYNK IS UP 100% since this acrticle was posted!

Thu, 07/10/2014 - 12:07 | 4943624 the grateful un...
the grateful unemployed's picture

the Chinese are all over Belize

Thu, 07/10/2014 - 12:20 | 4943682 BobTheSlob
BobTheSlob's picture

LOL...so not only has the company value gone full retard, what they "sell" is full throttle retard:

Company Overview
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. The company intends to serve seekers, who want to meet people; mavens, who know a lot of people; and targets, who are people that other people want to meet.

Do NOT follow this link or you will be banned from the site!