Mysterious Cynk plunges 80% as trading pause ends
The stock had previously soared 23,000% before regulators hit the brakes.
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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