Ruminations on the electronics industry from David Manners, Senior Components Editor on Electronics Weekly.
Cynk Or Swim
A company quoted on the OTC market with no assets, no revenues, no web-site, one employee and an accumulated loss of $1.5 million has seen its shares rise 24,000% from 16 cents on June 16th to $14 giving it a value of $4 billion.
The company, called Cynk, used to be called introbiz.com which was a social network which offered to put people in touch with celebs for $50 a shot.
The number of trades in Cynk shares is not that big and one explanation for this extraordinary valuation is that the stock has caught the attention of a momentum trade algorithm which buys stocks when they are going up – just because they’re going up,
It’s a funny old world.Tags: OTC market, shares rise, social network