Mysterious penny stock soars, and no one knows why

CYNK Technology has no revenue, no assets and only 1 employee. So why is it worth $4 billion?

By MSN Money Partner Jul 10, 2014 12:50PM
Credit: © Introbiz.com
Caption: A screenshot of Introbiz.comBy Everett Rosenfeld, CNBC

A social networking company with no revenue and no assets saw its stock soar to a market cap of well over $6 billion Thursday, only to fall back in the afternoon to $4 billion. 

The firm's meteoric rise is so unlikely that even its last auditor says it defies logic.

CYNK Technology (CYNK), which is based in Belize according to an SEC filing and only has one recorded employee, runs a social networking site (pictured) called IntroBiz. That site says it allows users to "both buy and sell the ability to socially connect to individuals such as celebrities, business owners, and talented IT professionals," but it is not clear how many registered users it has.

CYNK's stock was valued at less than a dime in June, and rocketed to nearly $20 at midday Thursday. By the afternoon, however, shares were down 5 percent to $13.97, placing the market value at around $4 billion.


CNBC could not reach the company. The phone number listed on CYNK's SEC filing was answered with a recording that said the number was unassigned.


"Who knows if insiders are trying to pump it to a high price?" CYNK's last auditor, Peter Messineo, said in a telephone interview Thursday with CNBC. "All I know is that I disassociate from this . . . You issue a report on something and then they pump and dump."


Messineo's  last review of the company was on Oct. 31, 2013. 


"I'm a one-person shop. I do my due diligence and then they go dark," he said.


This has not stopped many from criticizing Messineo online for his connection to CYNK.


As for CYNK, he said he barely recalled the company, and had to search through his files before summarizing what he knew.


"They were all but a shell company other than the plan for what they were going to do: Issuing some stocks and paying professional fees, they had some research and development -- they were trying to do something on the programming end, so something was going on," he said. "Nothing to generate revenue, nothing like contracts, nothing of that sort."


CYNK was created in 2008, and was orginally known as Introbuzz, according to a regulatory filingBased on a May 2012 SEC filing, CNBC reached the former chief executive of IntroBuzz, Ken Carter, and he said he is no longer involved in the enterprise.


"I used to run a company called Introbuzz, and I brought them to the stock market," he said. "I resigned from the company because of the players."


When asked to elaborate, Carter only said that there are "major players in this game," and explained that he wanted to talk to his lawyer before he could say more.


More from CNBC

145Comments
Jul 10, 2014 2:48PM
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How ironic that a story runs yesterday on MSN about the FBI running a year long sting on penny stocks and the scams involved with kick backs only to have the very thing reported actually happening. These penny stocks are shells for illegal activity for brokers to basically run a pyramid scam and rake in the cash before the game starts to collapse.
Jul 10, 2014 5:55PM
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Its just like the rest of the stock market all smoke and mirrors
only this one is a little more visible to the eye
Jul 10, 2014 6:08PM
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Where is the SEC? How many of these things we need to realize this market is rigged?
Jul 10, 2014 6:05PM
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More likely the former CEO didn't want to speak  because whichever cartel, he set this up for, would kill him for speaking.
Money laundering.
Jul 10, 2014 1:13PM
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Most likely a drug cartel trying to catch up with all the other cartels on Wall Street and get a little bit of action. No one outside of Wall Street has any cash left to buy their illegal drugs with. Crooks got to do what crooks got to do. 
Jul 10, 2014 1:33PM
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That's possible it  may well be, a "money laundering" scheme...??
Jul 10, 2014 2:05PM
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Pump and Dump scheme? I wish I knew how to short this...
Jul 10, 2014 6:58PM
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Wow people behind the scenes manipulating stocks and duping investors. I've never seen that before. Well not since yesterday and the day before and the day before and the day before .......................
Jul 10, 2014 6:13PM
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I am guessing that this stock will be down tomorrow..............waaay  down
Jul 10, 2014 4:18PM
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This is more than a "pump and dump" rally or feeding frenzy.....It's about $20 bucks per share...


From a dime....!!!!.......And 1 "employee".....And a Market cap of $6 Billion dollars...!!

Jul 10, 2014 2:04PM
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Sure I can write myself a $6 bln. check. In fact i can even write off the entire US Debt if my bank could only clear that check for me.  
Jul 10, 2014 6:10PM
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Where ever there is money there are crooks nearby.
Jul 10, 2014 7:44PM
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Stupid, I don't even think facebook should be worth a dime. But in the land of the naive anything is possible.
Jul 10, 2014 1:25PM
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Sweet Geezus, I didn't believe this could even happen...Belize, surrrrrrre!!
Jul 10, 2014 3:15PM
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The pumpy-dumpy is underway, for sure.

Jul 10, 2014 6:44PM
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Come one come all.........I've got a personal PC and NO ASSETS to speak of......I have a R & D department (Me) and might even be able to provide you with a 11-14% return on your investments...(No....REALLY) My stocks start out at ONLY 7.3 cents per share.......Come on my little lemmings.............GET SOME...... LOL!!!

Jul 10, 2014 6:56PM
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Maybe John McAfee knows what's going on.
Jul 10, 2014 3:09PM
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The article neglected to mention that the stocks rise began in middle June.
Maybe someone just likes the technology and started buying shares in sufficient quantities to attract attention from other penny stock traders enough to start a rally...?
I've seen this kind of rally in penny stocks many times... usually they only go up to maybe a dollar or two but it's the same kind of little feeding frenzy that gets the whole thing rolling.
Hopefully this won't result in a lot of people putting their savings into penny stocks.
Jul 10, 2014 6:41PM
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And, who said Belize was a scam area.
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