• GoldCore
    07/23/2014 - 07:21
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As The SEC Finally Gets Involved In CYNK, One Short Has A Big Problem

Tyler Durden's picture




 

It took the SEC only a week (after we first reported on it) to get involved with a company that does not exist, and whose stock rose nearly 30,000% in a few days, on a few thousand shares traded, hitting a nearly $6 billion market cap before it was finally halted for trading as we reported earlier. From the SEC:

However, even in its halt, CYNK ("don't be cynkal, be hopeful" perhaps Obama would say) continues to provide entertainment.

Case in point, this sad individual who on that bulletin board of epic retail investor comedy, Yahoo Finance, has explained their problem: it appears some brokers actually did allow shorting of CYNK, at a cost. A rather high and recurring cost it would appear.

Oops.

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Fri, 07/11/2014 - 09:23 | 4946781 Dubaibanker
Dubaibanker's picture

You're fucked mate!

Have a nice life, living in poverty!

Fri, 07/11/2014 - 09:30 | 4946809 Leonardo Fibonacci2
Leonardo Fibonacci2's picture

Yeah my advice is:  Home Depot has a sale on nail guns.....

Fri, 07/11/2014 - 09:33 | 4946815 90's Child
90's Child's picture

I'm glad I don't play stocks beside company 401K

I would have made my attempt to short it.

Shows what I know.

Long Au, Ag, Pb,

Fri, 07/11/2014 - 09:36 | 4946822 Keyser
Keyser's picture

You play with fire, you get burned... Shorting a penny stock using margin is a fools game... Som Nam Na... 

 

Fri, 07/11/2014 - 09:39 | 4946830 Gaius Frakkin' ...
Gaius Frakkin' Baltar's picture

A fool and his money...

Fri, 07/11/2014 - 09:45 | 4946842 NMFP
NMFP's picture

What money?

Fri, 07/11/2014 - 09:53 | 4946867 Keyser
Keyser's picture

Someone else's money... Hope he can pay the vig...

 

Fri, 07/11/2014 - 09:55 | 4946872 remain calm
remain calm's picture

The stock will be reported to have ZERO value. Yiou will get a 100% return on your money

Fri, 07/11/2014 - 09:58 | 4946879 American Dreams
American Dreams's picture

Hows tat old saying go "the only way to win is not to play" 

No more lies, no more lies

AD

Fri, 07/11/2014 - 10:06 | 4946903 fonzannoon
fonzannoon's picture

If CYNK represents the market than that sucker on Yahoo perfectly represents why the day it crashes, the shorts will never see a penny.

Fri, 07/11/2014 - 10:09 | 4946917 onewayticket2
onewayticket2's picture

Long Scottrade.  

Fri, 07/11/2014 - 10:10 | 4946920 Mark Carney
Mark Carney's picture

LOL ZH got honorable mention on bloomberg today for this!!!

 

Well done!

Fri, 07/11/2014 - 10:13 | 4946927 power steering
power steering's picture

Looks like a damn good position to me. Who charges interest on a credit balance? When it repoens it'll be at .01 cent.

Fri, 07/11/2014 - 10:31 | 4946982 fx
fx's picture

well, maybe not. and it could get worse. interest could be raised and if the broker can't locate stock to borrow, he may have to buy in. of course, with the stock halted, there can be no buy-in. meaning that the position could stay open with a god-knows-how-high borrowing cost. Imagine, the position carries on for a year or two and interest costs wipe out any profits - and those interest has to be paid instantly while the profits may show up much later.

Someone did sometghing he didn't know about properly - at least not when it comes to the risks involved. As they say, a sucker's born every minute.

Fri, 07/11/2014 - 14:04 | 4947737 kliguy38
kliguy38's picture

YOU CAN NOT make money shorting this market EVEN when it crashes. Get out of paper if you can't afford to lose the casino money. 

Fri, 07/11/2014 - 10:31 | 4946985 onewayticket2
onewayticket2's picture

right.  their customers are paying 12% ad infinitim....locked in.

Fri, 07/11/2014 - 11:13 | 4947115 Matt
Matt's picture

Is that 12% annual, calculated daily and compounded monthly? If so, that's probably not too bad.

Can a person sue the SEC for locking them into a loss?

Fri, 07/11/2014 - 11:25 | 4947159 Oxbo Rene
Oxbo Rene's picture

Call Yellon, tell her ya need a bail out ! ! !

Fri, 07/11/2014 - 12:11 | 4947305 BuddyEffed
BuddyEffed's picture

Cover your short with a lawsuit seeking damages.

Fri, 07/11/2014 - 14:13 | 4947770 CheapBastard
CheapBastard's picture

They chose Belize b/c Nigeria turned them down?

Fri, 07/11/2014 - 14:57 | 4947915 BuddyEffed
BuddyEffed's picture

If this CYNK thing was either a money laundering scheme or some funding channel for some black ops equivalent stuff, then I suspect no authorities will ever be able to find any of the parties involved.

Fri, 07/11/2014 - 11:13 | 4947116 Pairadimes
Pairadimes's picture

No one is allowed to beat the banksters at their own game. Any attempt to do so, legal or not, will be punished.

Fri, 07/11/2014 - 10:15 | 4946938 bobnoxy
bobnoxy's picture

The shorts already have their money. They sold the shares at whatever they were selling for. Unless the SEC cancels his sale due to fraud, maybe.

Fri, 07/11/2014 - 10:30 | 4946976 fonzannoon
fonzannoon's picture

Never thought I would plug S.A but here is a decent write up.

 

http://seekingalpha.com/article/2309115-cynk-technology-is-the-new-schem...

Fri, 07/11/2014 - 10:45 | 4947034 RaceToTheBottom
RaceToTheBottom's picture

Good link and article....

I am very glad that the US Stockmarket meets its role of providing capital for smaller companies to grow by..............  LOL

Fri, 07/11/2014 - 10:48 | 4947041 fonzannoon
fonzannoon's picture

don't forget hft's are there to provide liquiditeeee

Fri, 07/11/2014 - 13:57 | 4947708 Tom Terrific
Tom Terrific's picture

I hate fucking nosey websights that force you to sign in before you can read it, especially through google+

Fri, 07/11/2014 - 14:47 | 4947880 fonzannoon
fonzannoon's picture

sorry about that Tom. Forgot they make you do that.

Fri, 07/11/2014 - 15:26 | 4948000 Dens
Dens's picture

To see the text:

Right click - Save Page As - HTML - open her up

Fri, 07/11/2014 - 11:54 | 4947255 hairball48
hairball48's picture

Not true. division by 0 is not possible.

In this case our short seller will have a negative return

 

Fri, 07/11/2014 - 13:05 | 4947464 bobnoxy
bobnoxy's picture

I'm guessing you've never shorted a stock before?

Fri, 07/11/2014 - 18:27 | 4948537 algol_dog
algol_dog's picture

That's true. Better yet, if I recall right, no capital gains have to be paid on a issue that goes bust.

Fri, 07/11/2014 - 12:19 | 4947328 OceanX
OceanX's picture

Are soon out partying!

Fri, 07/11/2014 - 12:14 | 4947314 syntaxterror
syntaxterror's picture

Busting out the Thai. Nicely done.

Fri, 07/11/2014 - 12:47 | 4947400 lipskid
lipskid's picture

On what planet can you short a stock and not have a margin account?

Sat, 07/12/2014 - 11:24 | 4949821 Ski12568
Ski12568's picture

Scott Trade didn't even have shares to short. I call bullshit

Fri, 07/11/2014 - 09:40 | 4946832 Tall Tom
Tall Tom's picture

I hope that the price of Au, Ag, Pt, and Pd DECLINES...as well as the price of Pb Bullets.

 

I do not know about you but I like buying something when it is on sale.

 

Only people who want to sell it are cheerleaders for Price Increases.

Fri, 07/11/2014 - 11:58 | 4947247 FeralSerf
FeralSerf's picture

We have some good news and some bad news.

First the good news: Au, Ag, Pt, Pd and Pb have all declined substantially. The bad news is none of them are available for purchase.

This reminds one of the old Soviet Union. The good news is everything in the stores is very cheap and can be bought with worthless rubles. The bad news is there's nothing in the stores.

Sometimes some of these items might become available on the black market. If one includes the value of the incarceration and torture in the price paid for them, the price is not cheap. Police like to confiscate these items.

Thirty years ago, it was possible to buy gold items in the SU at bargain prices with US dollars. It the police caught you, you also got a free vacation in Siberia working in the gold mines.

Fri, 07/11/2014 - 14:17 | 4947783 CheapBastard
CheapBastard's picture

My doctor has a similar joke he likes to tell appropo the above:

 

We have some good news and some bad news.

 

The good news is all of you are now covered by Obamacare health care insurance.

 

 

The bad news is that no doctors are now accepting Obamacare health insurance.

Fri, 07/11/2014 - 14:49 | 4947889 fortune114
fortune114's picture

How about the doctor who phones one of his patients after reviewing his tests:

Doc: "The good news is: from the tests I concluded you have 24 hours to live."

Patient: "What? THAT'S THE GOOD NEWS?  What's the bad news????!!!"

Doc: "I've been trying to get a hold of you since yesterday morning!"

Fri, 07/11/2014 - 14:50 | 4947890 fortune114
fortune114's picture

-

Fri, 07/11/2014 - 13:19 | 4947518 Fivestringer
Fivestringer's picture

Why would go long on lead?

Fri, 07/11/2014 - 17:08 | 4948343 Overfed
Overfed's picture

Lead already encased in copper jackets in the shape of bullets.

Fri, 07/11/2014 - 09:35 | 4946821 Tall Tom
Tall Tom's picture

My advice is that you need to stop reading Yahoo Finance.

 

The next advice, which I offered yesterday on Zerohedge, is to NOT PARTICIPATE IN A FRAUD.

 

Principles before Profits

 

He deserves it.

Fri, 07/11/2014 - 09:40 | 4946831 negative rates
negative rates's picture

One mans fraud is another mans profit.

Fri, 07/11/2014 - 09:45 | 4946843 Tall Tom
Tall Tom's picture

I refuse to participate in any transaction where both parties do not win.

 

If I can provide my product for a price, if the purchaser can use my product, and if the purchaser is willing to pay the price, then we both win...regardless of how much I profit.

 

Imagine that...a fair trade...Something for something...Hey that is a novel concept. Hopefully it catches on.

Fri, 07/11/2014 - 10:05 | 4946899 johand inmywallet
johand inmywallet's picture

With honesty, no less!!

Fri, 07/11/2014 - 10:11 | 4946923 Dr. Kenneth Noi...
Dr. Kenneth Noisewater's picture

Not only ARE a sucker and his money soon parted, they SHOULD be.

Fairness is for commies.

Fri, 07/11/2014 - 10:42 | 4947024 tarsubil
tarsubil's picture

If you are fine with acquiring wealth through fraud, you must love our current system. 

Fri, 07/11/2014 - 11:10 | 4947107 tmosley
tmosley's picture

You don't need fraud to take money from suckers.

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