In a new segment called “why didn’t I think of that” I focus on a company called Cynk. Stop me if you’ve read this, cause I’m a little late to the game, but Cynk is a social networking company that runs a website called IntroBiz. Introbiz is a place where you can buy and sell the ability to connect to the rich and famous. So that’s great. A little start up with pics of celebs and the ability to communicate. Sort of like my little venture.
So imagine my surprise when I read this Huffpost blog that basically said Cynk, within a week, went from a penny stock to worth some 22 bucks a share. A valuation of 17 million to 5 billion dollars in seven days. And, get this, the company has no assets and no earnings to speak of. Business Insider puts it this way:
The company’s stock, which the folks at ZeroHedge first alerted us to, has gone from $0.10 on June 17 to $14.71 as of Wednesday’s close. At its current stock price, the company’s market cap is $4.29 billion.
This is a gain of more than 24,000%. For some perspective, Apple, one of the most successful companies and stocks of the last generation, is up about 18,000% since it went public in 1980.
But there is, as you could imagine, a slight problem with CYNK: It’s not clear if there’s any value to it.
I don’t know if this is some kind of scheme (what fancy pants call “market manipulation”) a computer glitch or what. Either way this company based in Belize, incorporated in Nevada with a Florida phone number and no financials to speak of for this year is a worth more then a lot of companies that have been around for years. By the way, last year’s financials looked like this:
That’s an operating loss of a million in the first year. So to recap: a company which is worth, by some reports, six billion, has no real address, no real income and no real business and a website no one goes to.
Hmmmm. I must be doing something wrong.