You wouldn’t buy a car that’s a known lemon. You wouldn’t visit a restaurant that has terrible reviews. You also probably wouldn’t want to sink your money into a house with a crumbling foundation.
So why would you, or anyone, invest in a company that has no assets and no revenue?
Many investors are willing to, evidently. Business Insider reported on the exploding stock price of CYNK Technology (OTC:CYNK), a social networking company that has seen its value rise by 25,000 percent in a matter of days. Its price is currently over $18 per share, which is even more than when BI started to look deeper into the company.
No one is really even sure what to make of CYNK Technology at this point, and nobody even knows if the company is legit or not. They have made a filing with the SEC, and filed its 10-Q paperwork back in September. Market analysis website Briefing has also dug a little deeper to see what CYNK is all about, and came away with some interesting tidbits. They also issued a warning to investors about the stock, which has hit a market cap of $4.3 billion.
The numbers show the company has no cash, no assets, and had no development employees as of its filing in September. What is known is that CYNK Technology officially incorporated in Nevada under the name Introbuzz in 2008. Briefing‘s warning to investors basically says this stock has all the tell-tale signs of being a stock market scam, although they don’t go that far because there has yet to be a reason found for the stock’s aggressive trading so far.