Everybody Loves A Good Scam – Morning Linkfest (July 11)

by Aaron Levitt | July 11, 2014 9:15 am

Hey Buddy? How’d you like to make a cool 25,000% on your investment? I know this awesome penny stock with one employee, large losses, no revenue and no assets. You would be crazy to sink your life savings into such a stock, right? Well, that’s just what plenty of investors did. Cynk Technology (CYNK[1]) — which trades on the over-the-counter market — has caught retail investors’ fever and has risen from about 6 cents to $21 before settling down to $13. There’s absolutely no rhyme or reason for the surge, but it’s a great example of the dangers in the market. Here’s Tim Worstall at Forbes with a recap of the stock’s price madness[2].

The Wall Street Journal’s Digits (Scott Austin and Jeff Elder): Just what does CYNK do (or not do)[3]?

MSN Money (Jean Eaglesham): Is CYNK a classic pump-and-dump? A look at the FBI’s Operation Pennypincher and the biggest sting yet[4].

Market Watch (Catey Hill): Speaking of criminals … would you let one pick your stocks? Meet the Oracle of San Quentin[5].

Beyondbrics (Jude Webber): Eat Fresh, Buy Local. Global multinationals are losing out to home town players in emerging markets[6].

Bloomberg View (Barry Ritholtz): Well, that market correction is finally here. Get out the life boats[7].

Rick Ferri Blog (Rick Ferri): How to under-perform the market in 93 easy steps[8].

Reuters (Kate Holton and Martinne Geller): Joe Camel gets a new home. Reynolds American (RAI[9]) and Lorillard (LO[10]) get gobbled-up. And it’s not even Merger Monday[11]!

Greentech Media (Nick Lombardi): How Connecticut is leading the world of green and renewable energy finance. Its model could change just how we fund projects[12].

Pando Daily (Paul Carr): Just once around the block, please. Uber’s background checks aren’t working quite so well[13].

Aaron Levitt is an investment journalist living in Ohio. With nearly two decades of experience, his work appears in several high-profile publications in both print and on the web. Also likes a good Reuben sandwich. Follow his picks and pans on Twitter at @AaronLevitt[14].

Penny Stocks[15]

Endnotes:

  1. CYNK: /stock-quotes/CYNK-stock-quote/
  2. recap of the stock’s price madness: http://www.forbes.com/sites/timworstall/2014/07/11/the-mystery-of-cynk-technology-no-assets-no-turnover-and-a-4-5-billion-valuation/?partner=yahootix
  3. (or not do): http://blogs.wsj.com/digits/2014/07/10/a-social-network-with-no-members-but-a-4-billion-valuation/
  4. biggest sting yet: http://money.msn.com/investment-advice/inside-the-fbis-big-penny-stock-bust
  5. Meet the Oracle of San Quentin: http://www.marketwatch.com/story/murderer-turned-stock-picker-is-oracle-of-san-quentin-2014-07-10?link=sfmw
  6. players in emerging markets: http://blogs.ft.com/beyond-brics/2014/07/10/em-local-dynamos-eat-multinationals-lunch/
  7. Get out the life boats: http://www.bloombergview.com/articles/2014-07-10/has-the-market-correction-started
  8. 93 easy steps: http://www.rickferri.com/blog/economics/93-ways-to-underperform-the-market/
  9. RAI: /stock-quotes/RAI-stock-quote/
  10. LO: /stock-quotes/LO-stock-quote/
  11. Merger Monday: http://www.reuters.com/article/2014/07/11/us-imperial-tobacco-reynolds-idUSKBN0FG0DI20140711?feedType=RSS
  12. how we fund projects: http://www.greentechmedia.com/articles/read/connecticut-is-becoming-very-influential-in-the-energy-efficiency-industry
  13. aren’t working quite so well: http://pando.com/2014/07/10/uber-driver-kidnaps-rider-takes-him-on-high-speed-case-new-background-checks-working-great/
  14. @AaronLevitt: https://twitter.com/AaronLevitt
  15. Penny Stocks: https://investorplace.com/stock-types/penny-stocks/

Source URL: https://investorplace.com/2014/07/cynk-penny-stock-scam/

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