Anyone have experience investing in these? Just wondering if we have any experienced pink sheet traders / watchers. Love to hear how the heck this became what it is. No judgments on any pump-and-dumpers from me; I just want to know.
http://americasmarkets.usatoday.com/2014/07/11/shares-of-tiny-facebook-rival-wannabe-halted/
A little known company that turned into a strange sensation on Wall Street winning a value of $4 billion over the last few weeks saw its shares get halted Friday.
Cynk Technology, a company that claims to be building “social network business” that trades on the lightly supervised Pink Sheet marketplace under the symbol CYNK, saw its shares get halted by the Financial Industry Regulation Authority. FINRA is a key securities oversight body.
The Securities and Exchange Commission also temporarily suspended the shares “because of concerns regarding the accuracy and adequacy of information in the marketplace and potentially manipulative transactions in CYNK’s common stock,” the SEC said in a statement.
Shares of the company have rocketed 24,000% in the past few weeks. FINRA did not give details on the reason for the trading halt.
Incorporated in Nevada, the development-stage firm lists an address in Belize and identifies just one employee in filings with Securities and Exchange Commission. It underwent a name change from Introbuzz, according to a quarterly report filed in November.
Sketching its strategy for competing with Facebook and LinkedIn Cynk said: “The company intends to develop a social network business and is currently seeking funding through the sale of its common stock to fund the preliminary stages of developing its website.”
What would it do with the website?
Cynk said it “plans to be a social network that is also based on showing the types of people you are connected with and are associated. However, it also based on the idea that people should, and will pay to get in touch with people you know. Furthermore, money or donations act as a convenient reason to get in touch with people who can benefit your career or enhance one’s life.”
How would that work?
“We believe that people will pay for introductions that are meaningful since it can save or create significant value to someone’s life such as to find the right executive, nanny, software developer — or even the right squash player,” Cynk said in the filing. “Instead of paying for lunch that neither party wants to eat, parties can get down to business knowing that their time has been valued.”
The company acknowledged that competing directly with LinkedIn probably wouldn’t succeed. But it said it believed “a social network that GENERATES REVENUE is a compelling reason to get people to join.”
Despite those plans, Cynk said it had nearly $1.6 million in accumulated deficits and negative working capital as of Sept. 30.
Cynk shares traded for 6 cents as recently as June 16. The stock rocketed in recent weeks, closing at $13.90 on Thursday before the trading halt was announced.
Financial website Seeking Alpha reported on June 18 that the surge began after “paid promotion companies simultaneously touted the company’s prospects in what appears to be a coordinated effort.” The website cited a series of identical tweets from different Twitter feeds that stated: “$CYNK NOW 2.75 +1427% keeps SURGING HIGHER!!! This could be EPIC!!!”