On June 16, 2014, Cynk Technology (CYNK) traded at 6 cents a share. Today it traded as high as 21.95 per share. This is an increase of 36,483%. Not bad for a three week investment. Even if you sold the stock at the close of the day at 13.90, the gain would be 23,067%. To put this in perspective, if you had invested $600 in the stock any time in late May or early June, your investment would be worth $139,000.
But that isn't the interesting thing about this company. Here are more details:
1. It had a market cap of almost $6 billion at the high, and at the close, a market cap of $4 billion.
2. The company is based in Belize. In case you aren't aware, Belize is a Central American country that is less than one tenth the size of Costa Rica by population.
3. The company reportedly has only one employee, the CEO. His former occupation was a Fisheries Officer for the Belize Government, who owns 72% of the shares. 72% of $4 billion is $2.88 billion. (Forbes, don't forget to add him to your billionaires list.)
4. The company was originally incorporated in Nevada under the name IntroBuzz.
5. The company has no revenues.
6. The company has no assets.
7. The company actually has a social network site, IntroBiz.com, which allows you to connect up with famous people for a price.
Is this the sign of a market bubble and are we now due for a correction? Well, last year on August 27, I wrote about a stock that was up 250,000% in one day! The Dow Jones Industrial Average was at 15,000 at that time. Now the Dow is around 17,000. Go figure.
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