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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Hohum's picture

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

max2205's picture

Dime a dozen

 

Zillow no earnings 5 bill market cap

Talk about undervalued!

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.

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...

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.

disabledvet's picture

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

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.

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. 

Rainman's picture

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

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.

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.

Miggy's picture

Part Time.

 

John 3:16

SoilMyselfRotten's picture

The next momo stock?

Gene Parmesan's picture

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

Cthonic's picture

Probably pronounced 'cynic'.

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...

TideFighter's picture

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

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.

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.

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)

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. 

Postal's picture

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

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.

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. 

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?  

medium giraffe's picture

Long pig-lipstick.

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.

yogibear's picture

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

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.

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.

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...
Suisse's picture

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

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.

 

 

yogibear's picture

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

hazenyc's picture

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

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

NOTaREALmerican's picture

Animal Spirits, FTW!!!

ebworthen's picture

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

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?

disabledvet's picture

The people buying it probably don't even know.

hedgeless_horseman's picture

 

 

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

CALPERS? 

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.

IANAE's picture

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

 

guessing ...sell stawks.

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.

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?