A ‘Social Networking’ Stock Has Exploded 25,000% In A Few Days, And It’s Not Even Clear If The Company Exists

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Social media allows us to stay in touch with friends, make new friends, and carry out business on the internet. We always look forward to the next app that makes the social media experience more pleasurable—and profitable. In the final analysis, it boils down to profits. Social media companies exist to make a profit. App designers create new apps in order to make a profit. Even the consuming public is on it for a profit, though the currency of the profit may be measured in satisfaction, convenience, pleasure, and ego trips rather than dollars. There is another venue for the public to make profits out of social media; be among the lucky few that buy stock before its value skyrocket to Facebook levels.

Individuals wishing to make a killing on social media stock may be curious about CYNK Technology, a small social media company. Between June 17 and July 3, a three week period, the stock value skyrocketed from $0.10 to $14.71 a share, a 25,000 percent increase in value, giving the company a share valuation of $4.29 billion. Have those individuals already missed the boat? They may think that $14.71 a share is a lot cheaper than Facebook shares and may look forward to continued growth. Maybe there still is time to buy into CYNK Technology?

Internet-based companies can explode in value with new technologies. It is possible to buy into a social media company before it explodes in values. The question is whether CYNK may be a good investment for the little guy wanting to capitalize on social media share growth. What is driving the explosive growth in CYNK share valuation? Company filings indicate it had no revenues in 2011, 2012, or 2013. Furthermore, it had a 2013 operating loss of $1.5 million. CYNK trade over-the-counter, meaning it is not subject to the stricter regulations of the Stock Exchange. It lists its address in Belize but is registered in Nevada. It has only one employee who wears all the executive hats in the company and company filings indicate that individual has no contractual relations with the company. It would be tempting to conclude CYNK is an example of an internet market bubble, but it may be fraudulent action going on. The old axiom remains true, if it is too good to be true, odds are it is not true. Investment in young social media companies is best left to sophisticated investors with deep pockets who can screen the companies and can take huge losses if need be. As for you and me, we are better off measuring our profit in terms of satisfaction, convenience, pleasure, and ego trips rather than dollars.


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