CYNK Technology Corp (OTCMKTS:CYNK) formerly known as Introbuzz, Inc. is a small scale development stage company started in 2008. They develop social business network for companies. Till November 2012 the company had not generated any revenues. This company had negative net assets and a non-functional website. In spite of all this the company revenue has grown nearly 25000%, with its stock price growing from $0.1 to $14.7 in 16 working days (June 17 to July 9).
Apple Inc. (NASDAQ:AAPL) stock price has grown 18000% since its debut back in 1980. Compared to that CYNK Technology Corp (OTCMKTS:CYNK) growth is a bomb. How would anyone justify this growth? After lot of blog updates and media intervention, SEC (US Securities and Exchange Commission) took notice of the situation and suspended trading on CYNK Stock effective from July 10. No one has any idea what triggered this growth to CYNK Stock. Former Federal Prosecutor, Joel M. Cohen and CNBC’s Herb Greenberg discussed on the after effect of SEC investigation and what awaits the investors.
Cohen said that they do not know any details about this yet. He said that SEC have a task force who will look into any kind of fraudulent activity by promoters or nominees that might have happened behind scenes to trigger this growth. SEC will collect evidence in order to file a manipulation case against any of the principal of CYNK Technology Corp (OTCMKTS:CYNK). Burning question is that what happens to investor’s money who invested in CYNK stock.
“Well, it usually does not end well for them, whether it was fraud or not there is a limit to what they can recover. First of all it’s the limit that you can recover if it was a fraud. Because typically those that engaged in the fraud if there was one, the money has moved very far away from the company. Even if it wasn’t a fraud it would be difficult,” Cohen elaborated that the hope for investors is very small in either case.
Seeing the unimaginable growth of CYNK Technology Corp (OTCMKTS:CYNK) stock, flag was raised in many blogs, CNBC reports and many other media. A 25000% growth in three weeks can easily be noticed by a person sitting in his room. But SEC jumped in very late into this issue and acted. Many people were concerned with very late response of SEC on this issue.
Greenberg said that as soon as the press got onto the issue SEC had a wake-up call and they have made a recent press release on nailing down some promoters of a company named Ammo Gear with activities very similar to CYNK. Greenberg said that when someone does a research on such small penny stock companies and if they don’t find any credible information on the company and people, then he thinks that might be work of dinky promoters. Investors had to be very careful and not just look for growing stock, but also about the background of the company that is having the growth.