Mysterious Cynk plunges 80% as trading pause ends

The stock had previously soared 23,000% before regulators hit the brakes.

By MSN Money Partner Jul 25, 2014 11:51AM
Credit: © Introbiz.com
Caption: A screenshot of Introbiz.comBy Tomi Kilgore, MarketWatch

Cynk Technology (CYNK) shares fell 82 percent Friday after they became free to trade for the first time in two weeks.


Given the stock's meteoric rise, prior to the 10-session halt by the Securities and Exchange Commission -- despite no reported sales or assets -- it's no surprise to see it get spanked at the open. The stock dropped 64 percent to $5, then plunged as much as 86 percent at the intraday low of $2.01.


Technically speaking, there was some minor congestion in the shares' chart prior to the halt between $5 and $3 that could provide some support. And as technicians often say, the strongest support for any stock is at zero.


The SEC halted trading of the social network's (pictured) stock July 11 because of "potentially manipulative transactions" and concerns regarding the "accuracy and adequacy of information in the marketplace." The stock, which traded over-the-counter, closed at $13.90 on July 10 after soaring about 23,000 percent since June 16.


Among some other hot OTC stocks that faced similar SEC scrutiny, GrowLife (PHOT) shares tumbled 58 percent to 21 cents when their halt was lifted on April 25, and have since fallen another 57 percent to 9 cents early Friday. Prior to the halt, the stock had more than tripled year-to-date.


Shares of Advanced Cannabis Solutions (CANN), which had run up more than 9-fold year-to-date until it was halted as of March 27 at $29.99, opened with a 38 percent tumble on April 10 to $18.50. The stock has fallen another 75 percent since to $4.66.


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11Comments
Jul 25, 2014 2:37PM
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This is what happens when you have too much cheap easy money chasing yield. Thank you Federal Reserve for turning the stock market into a carnival side show.

It’s 2014, do you know where your retirement fund is?

Jul 25, 2014 12:03PM
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One man internet ad and social enterprise with no assets.  FB anyone?
Jul 25, 2014 12:09PM
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The perfect short.  I imagine they will let out it was a complete fraud with fabricated numbers and such. We will see more and more of these as folks begin to see the bubble begin to let air out.  This is just the type of issue shorts have been waiting forever for. 
Jul 25, 2014 2:56PM
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I'm putting my money in tulip bulbs- at least you can eat them.
Jul 25, 2014 3:50PM
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That's all that's left to us since we don't actually make anything in this country anymore; useless non-products.
Jul 25, 2014 3:57PM
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Maybe it was an INSIDER IN CONgress
Jul 25, 2014 4:59PM
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Mysterious sink? What a coincidence!
Jul 25, 2014 4:22PM
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I really wish I had known how to short this.
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