Cynk Technology Corp. (OTCMKTS:CYNK) Starts Crashing
On June 18 the stock of Cynk Technologies Corp. (OTCMKTS:CYNK) took the market by storm when it run from an opening price of $0.18 to a high of the day of $4.25 and closed at $2.25. In just one day CYNK had risen by the unbelievable 3650%.
Usually such jumps are only caused by a widespread pump campaign but weirdly enough this time there were no pump emails, no landing pages and no hard mailers flying around. The only artificial hype was created through twitter alerts.
Yesterday the pumped stock of Windstream Technolog (OTCBB:WSTI) picked up even more speed an climbed by 12% to reach $1.69 per share. At the moment is nearly 3% in the green at $1.74.
The performance of the stock becomes even more bizarre if you take a look at their latest financial results. At the end of March 31 CYNK reported exactly:
- $39 cash and total assets !!!
- $51 611 thousand total current liabilities
- ZERO revenues since inception
- $6241 net loss
That’s right – a company with total assets of 39 dollars commanded a market cap of more than $500 million. In addition to the dismal financials back in 2012 a little over 1 million shares were sold at just $0.05. Well, you might think, 1 million shares are actually a pretty small number. That may have been the case if it weren’t for the 75-for-1 forward split performed shortly after the shares were sold. The split turned that number into 81 million shares priced at $0.00066 each.
Despite the enormous red flags CYNK managed to not only keep its gains but to even surge higher. On Monday it opened at $2.10 and after six and a half hours of trading found itself at $4.10 per share. For a brief moment it even touched upon $5.40.
Unfortunately for all those who bought in at those grossly overpriced levels CYNK has now started crashing, hard. Yesterday it wiped 30% of its value and in early trading today it has slashed another 23% sitting at $2.26 at the moment. It should be obvious that apart from the artificial hype there is nothing preventing the stock from retracing its steps back to its previous 
price ranges of 6 cents per share. It is exactly for this reason why doing your due diligence before attempting any trades involving pennystocks is absolutely essential.
price ranges of 6 cents per share. It is exactly for this reason why doing your due diligence before attempting any trades involving pennystocks is absolutely essential. Yesterday the pumped stock of Windstream Technolog (OTCBB:WSTI) picked up even more speed an climbed by 12% to reach $1.69 per share. At the moment is nearly 3% in the green at $1.74.
