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Undisputable Bubble Insanity: No Revenue, No Assets Company Up Over $1 Billion (+110%) Today On 57K Shares Traded

Posted on July 10th, 2014 at 16:12 by John Sinteur in category: batshitinsane -- Write a comment

[Quote]:

Just 2 days ago we highlighted the best example of the exuberance awash the markets currently – CYNK Technology Corp, the social media development company that had a market capitalization in excess of $1 billion, which according to official filings, had one employee, no website, no revenue, no product, and no assets. Fast forward 2 days – and some 57,000 shares traded (about 0.02% of its total shares outstanding) at around $10 and CYNK now has a market cap approaching $3 billion (and still no revenue, no product, and no assets)… Lord Overstone said it best. “No warning can save people determined to grow suddenly rich.”

[..]

Think we are exaggerating, here is the company’s own description from its 10-K (yes mysteriously it does actually have public filings):

we have not yet commenced our full scale business operations and we have not yet realized any revenues.

We have minimal operating history upon which an evaluation of our future prospects can be made. Based upon current plans, we expect to incur operating losses in future periods as we incurred significant expenses associated with the initial startup of our business. Further, we cannot guarantee that we will be successful in realizing revenues or in achieving or sustaining positive cash flow at any time in the future. Any such failure could result in the possible closure of our busiess or force us to seek additional capital through loans or additional sales of our equity securities to continue business operations.

  1. It’s a pump & dump scam, probably supported by lots of spam. Yawn.

  2. “A company for carrying on an undertaking of great advantage, but nobody to know what it is.”

  3. From Charles Mackay’s “Extraordinary Popular Delusions And The Madness Of Crowds”, describing the time of the South Sea Bubble in about 1720.

    The most remarkable [project] was “A company for carrying on an undertaking of great advantage, but nobody to know what it is”:

    [the prospectus stated] that the required capital was half a million, in five thousand shares of 100 pounds each, deposit 2 pounds per share. Each subscriber, paying his deposit, was entitled to 100 pounds per annum per share. How this immense profit was to be obtained, [the proposer] did not condescend to inform [the buyers] at that time, but promised that in a month full particulars should be duly announced, and a call made for the remaining 98 pounds of the subscription. Next morning, at nine o’clock, this great man opened an office in Cornhill. Crowds of people beset his door, and when he shut up at three o’clock, he found that no less than one thousand shares had been subscribed for, and the deposits paid. He was thus, in five hours, the winner of 2000 pounds. He was philosophical enough to be contented with his venture, and set off the same evening for the Continent. He was never heard of again.

    [filling in the background to the comment of my fellow commentor SueW.]

  4. These days one need not remove to the Continent. And one can do it again and again.

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