In June the company was worth 6 cents a share, which rapidly rose 25,000 percent to over $14 a share by July 10th of 2014. (Source)
Even Apple Inc's stocks (in comparison) have risen a whopping 18,000%...but that's since it went public in 1980. So naturally, every financial analyst was up in arms about this company CYNK; calling it a "pump and dump" scheme that by the time the SEC got involved (and halted sharing) was up to 6 billion dollars. Geez! After investigating the shady company's financials it has been disclosed that there are no assets, no revenue, and only 1 employee. Furthermore, the stock is only exchanged over the counter on an unregulated exchange site. When authorities went to investigate the single owner and shareholder of the company (Javier Romero, located in Belize), they discovered his poverty-ridden family in Belize, who say he knows nothing about the company and owns nothing. (Source)
After all the hype from analysts and the media, CYNK stock continued to rise until the SEC called a halt. Then, naturally, shares began to sell like hot cakes. "Even if a company is on the up-and-up, a trading halt will absolutely wreck its shares. CYNK fell from $13.90 to $2.50 within 30 minutes after the market opened." (Source) So again, we have another Penny Stock company that gets away with ultimately grand theft. Someone walked away with 6 billion dollars, and no one knows who.
Apparently this happens all the time, which makes me a little wary of our stock market and the legitimacy of taking a company public. Who wants to play on a field where cheaters are making fouls that the reps let them get away with? This is not reassuring news for a legitimate company planning to earn its 6 billion dollars.
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