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Pure Madness: Revenueless, Assetless CYNK Soars Over $5Bn; Bigger Than GameStop, Cablevision, Jabil Circuit
Well that escalated quickly... CYNK Technologies - which we first exposed to the world here - has gone from dumb to dumber. "Traders" just bid CYNK at $18.50 $20.32 this morning (on less than 100,000 shares) meaning this asset-less, revenue-less shell of exuberance now has a market cap over $5.4 $5.9 billion.
This means our "price target", purely on fundamentals of course, was hit in less than a few hours:
CYNK finding a second wind. Let's do this: $5 billion market cap target
— zerohedge (@zerohedge) July 9, 2014
That leaves CYNK more "valuable" than all of the following companies...
Incidentally, owning 210 million shares, the CEO, and only employee, of CYNK, is now among the top 400 richest people on earth.
As a reminder, this idiocy is a glimpse of what the Fed's central planning has done to the S&P 500.
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Time for a string of stock-swap acquisitions, followed closely by a CLO-funded share buyback program.
What does CNYK plan to make? e-Tulips?
Nothing that tangible.
What does CNYK plan to make?
Suckers.
One every minute.
They gonna' hook you up with Miley Cyrus for $500.
E Fool-lips
Sadly...........no puts to buy.
Don't you remember what happens to "most - shorted" stocks? You need to know "the right" telephone number.
options don't start for 30 days, at which time the short interest will really propel this baby higher. MOAR
Wouldn't it be the oppostie? Like when everyone is running to buy a stock it jumps?
But then again I don't hope for common sense in this era of bizzaro-ness.
Once in a lifetime incredible margin opportunity!!!!!!!
Zero employee costs ....zero obammy health costs ......zero sales costs .....zero production costs!!!! Woohoo!
Do as the PhDs at the Federal Reserve do... Pile it on Higher and Deeper.
Let's beat Apple.
you'd be a fool to short this.
what I mean is not that it SHOULD be under a dollar per share. What I do mean is that if you had shorted this at $5 or $10 or $15 on solid fundamentals you would be 'right' but also burned.
what I mean is not that it SHOULD be under a dollar per share. What I do mean is that if you had shorted this at $5 or $10 or $15 on solid fundamentals you would be 'right' but also burned.
This has no similiarities to 1999 at all.
More on this company including a look at their website from BI...
http://www.businessinsider.com/a-closer-look-at-introbizcom-2014-7
Didn't Jesse Livermore get paid to do exacly this thing in his day? Plus que ca change, plus que c'est la meme chose.
Place your bets gentleman.
Great time to IPO your worthless company. Wall Street will be throwing money at you.
Peak insanity? It fucking has to be.
What the fuck could top this steaming pile of shit?
A Kenyan as POTUS?
Just tried to short 1000 shares at IB but got error "There are insufficient shares of CYNK to short". It is not on their shortable list either. No borrow through normal channels apparently.
Here is a good technique if you want to short a stock like this; buy it now and sell it out when its trading a few dollars higher.
That is called buying a Long Position.
Selling a Short Position is when you borrow Stock and sell it immediately on the open Market. Before, or, at the end of the contract expiry you buy back the Stock which you borrowed and replace it. I
f the price of the stock is Higher than when you initially sold it then you lose the difference between the prices. If the price of the stock is lower than the price when you initially sold it then the difference is a gain which you can pocket.
Put Options and Call Options are other ways to trade. Personally, if I believe that the price of a Stock is set to fall then I will buy a Put Option outright. Likewise if I believe that a Stock will rise in price then I will buy a Call Option.
But in this trading environment I refuse to buy anything to do with the Stock Market and the Bond Market at all. That is because the foundation of the Markets have become eroded with fraudulently issued currency. I have a total lack of confidence in the American Markets...the World Markets...as they are being directly manipulated by the Central Bank Cartels.
I place my principles over that of profits.
So for what reason are you trolling ZH? You obviously do not trade.
You should also watch the movie Trading Places and focus on what happens after the bathroom scene at the NYSE.
If you must know the vast majority of my trades are sell to open whether long or short since i trade mainly options, futures, futures options and spot forex as i see straight long or short shares of things to be a terrible use of capital and I like to mostly sell option premium on whatever i can find what I consider to be good premium, doesn't matter to me if that is in an equity, etf, etn, future (if I can find it in this "new normal" low vol environment that is) and right now 90% of my few dozen positions are short beta weighted SPY delta and vol is basically at all time lows sooo.... I'm not happy therefore I troll a bit because what else am i gonna do here? I'm not buying em here that's for damn sure.
Not even any tulips..
Calm down, fundamentals are meaningless in central planning.
The CYNK CEO needs to issue a press release vaguely referring to sustainability. Who needs assets, revenues, employees or products when you have sustainablility?
Disruptive
Game Changer
Revolutionary
Dangerously Close to Critical Mass
Scalable
Innovative
Carbon Nuetral
Empowering
Connect
Just slap a bunch of non-differentiating buzzwords in there and you're set.
Some kind of CIA shell corp to launder money thru.
Obama just made an announcement that Sanchez didn't make all that on his own. Then he scheduled a trip to Cali to meet Sanchez for a fund raising luncheon and some golf afterwards.
I would upmod this comment with great gobloads of upmods if that were possible. Thanks for the smile of the day.
Think of how rich the owner got in the last few weeks.
If I were he, I would be hitting every bid until I was out of shares ... and buying 6 diff kinds of currencies, gold bars, a speedboat and making a lot of phone calls.
He absolutely hit the jackpot. Marvelous to behold.
Too bad he can't sell his stock either ;)
Too bad he can't sell his stock either ;)
Looks like he's selling 200K shares today, that's $4 million. It won't make him a billionaire in cash, but not bad for a weeks "work".
Quantum Nucleonics
Totally new to the concept, but
per http://www.futurepundit.com/archives/000978.html , it sounds like some extraordinarily dangerous stuff.
Sounds perfect for our Air Force seeking to accelerate the last days.
I canT find this stock... Anybody got a link that works?
Even if you found it, it wouldn't be there...
It's a stock pickers market!
Cramer must be short
It's a money-laundering shell
You all miss the point. In our current ZIRP, the discounted future worth of even the first dollar of net income this company 'earns' will be infinite. So, to me, it is infinitely undervalued.
He should charge $1,000 per 10 minute interview and ring up speaking / interview income of about $50,000 and file no expenses against the income. This way, if rates rise to 1/100th of 1% (0.01%), and we use this as the cap rate for valuation, CYNK become worth $50,000 / .0001 = $500 million. Oh shit. It's even 10X overvalued at a discount rate of 0.01%!
TIME TO CALL HENRY BLODGETT AND MARY MEEKER!
For the love of god, will someone write me a put option!!!!!
They should give their EMPLOYEE a raise.
I was gonna short this garbage. Makes sense you can't.
yes thank goodness they are saving you from yourself
I usually double bag, but a 50 bagger? How long does that take?
this looks a like a venture capital project. in VC the concept is floated, to raise money, hire employees and build the product. when you buy into a VC you don't really own anything, you own a little bit of everything, so its an accounting nightmare. ironic that duke cunningham (rep CA) just got an early parole for taking kickbacks in a similar scam (pay attention obama) duke had an idea that the government needed to pdf all its documents maps and charts etc. he pushed for a government contract for a shadow firm to do the work, and then he took the kickback. when the firm was awarded the contract they had one employee, they didn't really exist, then some people started to question why the government needs to pay somebody this much money to pdf documents. (ironically he was caught after he sold his condo and bought a posh mansion in RSFE, very very upscale) duke did six years on an eight year sentence. he was very contrite yesterday (he is a vietnam era ace, shot down a bunch of NVA migs - VC?) the venture capital model is what bush delay and abramoff all worked through (the trillions that disappeared is what crashed the economy) with most of the fronts in the caribbean, including some online casinos. (great place to wash rinse and repeat) Belize is crawling with Chinese money. so this is likely wall street hot money, sent to China and repackaged along the VC lines, near those wonderful caribbean banks where a lot of wealthy US oligarchs hide their money, and the politicians hide a few bucks as well.
Jackpot!!!
http://www.zerohedge.com/news/2014-07-09/full-list-companies-audited-cyn...
This is easy, I think I'll do it s'more!
Now we go with the retirement money, and cashing out the equity line 2nd on the homestead. That should do it.
"Incidentally, owning 210 million shares, the CEO, and only employee, of CYNK, is now among the top 400 richest people on earth."
That assumes there's enough buyers for 210M shares at that price, which I really doubt. Kinda exposes the fallacies inherent in computing the value of stock assets.
Can someone take the time out of there busy day to explain what the volume (less than 100,000) has to do with anything?
if you can run the stock up on LOW volume you have the best of all possible worlds.
A high price with Low Volume indicates that the Stock is going to decline in price. It is indicative of a lack of demand.
A High Price with High Volume means that the Market Demand for the Stock is extremely strong and thus the Price Levels are sustainable and even set for an increase.
I do not understand your logic at all.
Please educate me...
if you have $2 worth of capital to boost the value of your own asset, you have doubled your return if you achieve the same thing using $1. hedge manager A wants to invest 100K in stock XYZ, he hopes to add 10% to the price of the stock through his actions. his aim is to control the float (using money he borrowed from the Fed perhaps). A boosts the value of XYZ using the least amount of capital required. its pretty easy really. high volume is an indication that buying pressure will soon exhaust itself, low volume indicates there is buying pressure in reserve.
this is why anecdotally adding stock to the float is a good thing, and not dilutive as the textbooks say. when there is more stock, buyers of size, large instititutions can join in, the fear is always that the holder of a stock of a small float company gets bad news and the door slams shut on them. the important thing to watch in these companies is the block trades. a block trade is done off the market, and therefore has little or no effect on the price of the stock. so A might need to unload his rather large holding in XYZ, which might take months, or would certainly drive the price lower, so he calls B, and a deal is made (usually for consideration).
when the price of something like gold drops, the supply drops as well. if gold goes to $1000 you won't be able to find any. that's the result of fed policy, credit is easy, and the more prices fall the more credit the fed pumps into the economy. those with access to that credit use it to buy hard assets.
In this case, one person owns nearly all the shares, and is unwilling or unable to sell or rent them, so the demand could be high but there are only 50,000 shares being traded back and forth.
Or a couple of insiders are trading the same 100 shares back and forth at higher and higher prices.
Maybe they actually own some important IP and one or more real companies are trying to buy them out.
Or maybe someone fat fingered and the sudden interest sucked in tons of penny stock day traders and it became a self-sustaining phenomenon.
There is no way to know what is really happening in this situation.
Should still be unionized!
CEO should start lending his shares. Continued shorting would drive the price up to $100 easy. Lend the shares with a 20% interest rate and he would make a bundle without selling a thing. Im sure Wall Street could short his whole position if they were allowed.
If 200 million shares were borrowed for short selling, who would buy the shares on the way down in order to sell them back to the shorters?
Is there any rule against lending out shares for shorting, and then buying up the shares and refusing to sell them in order to squeeze your own borrowers?
The price range for this one day is approx $10 - $20.
Neither the Exchange or SEC were able to reach a company spokesperson for comment.
Not to worry high frequency traders are on the job!
"It's a mad house, A mad house!!!!"
-George Taylor, Planet of the apes
The list of Congresscritters who are long this stock should be made public pronto. For all we know, the Fed is pumping this stock for the benefit of a couple of Goldman Sachs alums (and the Congressmen in their pockets) whose hedge fund is having a rough 1H14.
I want names
Corzine. In a few weeks they will announce that MF Global clients have been made whole so there is no need to prosecute the Never Honarable Jon Corzine.
.
aren't we the market?
This news can mean only one thing:
Buy more tulips!