All of a sudden, Apple’s decision to buy Beats for $3.2 billion is looking pretty good, since absolutely nothing costs $4.9 billion. Cynk Technology Corp (OTCMKTS:CYNK) has been an over the counter penny stock with essentially no trade volume for most of the last year. And then, for no apparent reason, it rose from $0.06 per share to more than $2 in June and has gained 150% in trading today to reach $14.71 valuing the company at $4.9 billion even though it has no revenue, no assets, no product, and one employee (h/t Zero Hedge).
Cynk Technology Corp (OTCMKTS:CYNK) hopes to one day hire a web dev
For those who are curious, Cynk Technology Corp (CYNK) is a social media company whose plans included hiring a web developer and starting a website the last time it filed a quarterly report, last November. The company filed a Rule 15d-6 Suspension of Duty to File Reports back in April, so if you’re looking for a social media start-up with a bright future this doesn’t seem like the droid you’re looking for (and it’s been hard to find stocks to borrow for shorting, oh well).
Cynk Technology Corp (OTCMKTS:CYNK) looks like the king of all pump and dumps
What seems more likely is that this is an incredibly audacious pump and dump scheme. Weighting Machine has a good catalogue of some older Twitter hype from June when it first started taking off. Penny stock pump and dump schemes are nothing new, unfortunately, but it tells you something about the incredibly bullish market sentiment that a company that can just barely be said to exist can get pushed so high in a couple of weeks.
Carlson Capital's Black Diamond Arbitrage Partners fund added 1.3% net fees in the first quarter of 2021, according to a copy of the firm's March 2021 investor update, which ValueWalk has been able to review. Q1 2021 hedge fund letters, conferences and more At the end of the quarter, merger arbitrage investments represented 89% of Read More
It also shows how divorced some investors are from investing fundamentals. Whether you want to buy and hold penny stocks or implement complicated technical investing strategies, or really anything else, Cynk Technology Corp (CYNK) doesn’t pass even the most cursory due diligence. If there something more to this company you might call this a sign of a bubble, with stock prices floating free of earnings.
But considering the absurdity of the whole thing we may just have to chalk it up to pure stupidity. New York Magazine writer Kevin Roose summed the whole thing up pretty well: “Cynk is the Wall Street version of potato salad guy.”