• GoldCore
    07/30/2014 - 18:58
    “But long term...and economic law says, if you keep printing a lot of paper money, the value of the dollar and currency will go down, and things and most prices will go up and indeed gold always goes...

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!

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