Read a short article the other day about a "company" called CYNK technology (ticker: CYNK). No revenue, no assets, 1 employee and market cap of $4 billion. Any buyers out there?
Link here: http://money.msn.com/top-stocks/post--mysterious-penny-stock-soars-and-…$
would you short?
I wouldn't touch it
Tim sykes and his people made a killing on this.
They actually do (did?) have some assets. $39 in cash lol. https://www.otciq.com/otciq/ajax/showFinancialReportById.pdf?id=122455
This got shut down by the SEC. It is a new ploy where the short seller is the victim, being that very few if any people other than insiders are, "long". Basically couple guys owned the majority of the float, made a couple of transactions to pump it up before releasing some info on the company to bring in the short interest. They then lent out shares to the first round of people who wanted to short it, before subsequently doing some more transactions between themselves to squeeze those people out feeding the appreciation. "But what if you have deep pockets and are willing to take the short term pain, $39 in assets, it has to drop.." Problem here is that these guys were charging short sellers out the ass to lend the shares, so either way they are making $... and then getting shut down.
Very interesting. I suspected something like this may have happened. Thanks for describing the mechanism involved here.
Damn... Unreal. Thanks for the info.
Looking at its stats on Google Finance, it has had bugger all volume. Highest volume trade on 10 June when it peaked at $0.20 was ~61k shares. That's a huge $12,200 spent on that trade.
On those types of paper thin volumes, you could get your mother-in-law to move an over-priced trade any time of the day to cause a price spike. Market orders were probably thin and you could get a group of friends to flip shares back and forth to create the illusion of liquidity.
I read this in the WSJ last week I thought trading was suspended on this?
way old news
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