CYNK Social Media: The New Irrational Exuberance
Once more unto the breach.. CYNK - OTC penny stock, Belize based social media web site IntroBIZ, one employee, no sales, no assets, no revenue, no users, no sales, 0.39 cents in the bank.
June 17th, stock value is 0.06, overnight market cap shoots from $1B to $3B on 57K share volume, sudden spike to $2.25, for a gain of 3650%. Zero Hedge reported the bubble insanity here.
Click here for CNBC video report on CYNK, penny stock with multi billion dollar market cap and 0.39 cents in the bank!
Followed by a meteoric rise to almost $22, peaking July 10th @ $21.95 (36,000% gain) on volume of 386K with 292M shares outstanding. Total market cap was over $6 Billion, that's more than Dominoes Pizza, Blackberry and the NY Times.
We Nattered here, another CNBC video report here, below CNBC Video: SEC halts CYNK trading.
July 15th - Fed Head Yellen comments on the "New Irrational Exuberance":
“Valuation metrics in some sectors do appear substantially stretched—particularly those for smaller firms in the social media and biotechnology industries, despite a notable downturn in equity prices for such firms early in the year”
According to the SEC, there are eight micro cap/unregistered offerings red flags:
1. SEC trading suspensions (the SEC has suspended public trading of the security).
2. E-mail and fax spam recommending a stock.
3. Insiders own large amounts of stock.
4. False or exaggerated press releases.
5. "Guaranteed" high investment returns.
6. Unsolicited offers, including through social media.
7. Pressure to buy RIGHT NOW.
8. No net worth or income requirements (for the investor.)
The Nattering One muses... Really? Let's apply some common sense to that list above... Item 8, should be Item #1, and not for the investor, but specifically for the company in question.
Applied in the case of CYNK: one employee, no assets, no users, no customers, no sales, no revenue and 0.39 cents in the bank...
in under 30 days, from .06 cents to almost $22 and over $6 Billion in market cap. Irrational Exuberance, oh yes. More to come...
June 17th, stock value is 0.06, overnight market cap shoots from $1B to $3B on 57K share volume, sudden spike to $2.25, for a gain of 3650%. Zero Hedge reported the bubble insanity here.
Click here for CNBC video report on CYNK, penny stock with multi billion dollar market cap and 0.39 cents in the bank!
Followed by a meteoric rise to almost $22, peaking July 10th @ $21.95 (36,000% gain) on volume of 386K with 292M shares outstanding. Total market cap was over $6 Billion, that's more than Dominoes Pizza, Blackberry and the NY Times.
We Nattered here, another CNBC video report here, below CNBC Video: SEC halts CYNK trading.
July 15th - Fed Head Yellen comments on the "New Irrational Exuberance":
“Valuation metrics in some sectors do appear substantially stretched—particularly those for smaller firms in the social media and biotechnology industries, despite a notable downturn in equity prices for such firms early in the year”
According to the SEC, there are eight micro cap/unregistered offerings red flags:
1. SEC trading suspensions (the SEC has suspended public trading of the security).
2. E-mail and fax spam recommending a stock.
3. Insiders own large amounts of stock.
4. False or exaggerated press releases.
5. "Guaranteed" high investment returns.
6. Unsolicited offers, including through social media.
7. Pressure to buy RIGHT NOW.
8. No net worth or income requirements (for the investor.)
The Nattering One muses... Really? Let's apply some common sense to that list above... Item 8, should be Item #1, and not for the investor, but specifically for the company in question.
Applied in the case of CYNK: one employee, no assets, no users, no customers, no sales, no revenue and 0.39 cents in the bank...
in under 30 days, from .06 cents to almost $22 and over $6 Billion in market cap. Irrational Exuberance, oh yes. More to come...
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