Outliers of the efficient market theory

[peter1234]

LMAO. How did you find this?

from the VIC thread on good short ideas.

 

Being overvalued and being a good short is slightly different. It just might run up another 37x and then being valued at 26b...

;D

Just make sure price does not go in the wrong direction.

;D

 

[moustachio]

So the single owner has 70% of the shares. Can he really unload all his shares just based on an excited, unknowing 30% before the whole thing collapses exponentially?

 

Reminds me of a section from reminiscences of a stock operator. Seems like there should be some offshoot of the SEC that protects traders from manipulation like this.

 

I haven't looked over this stock at all and just looked through this thread. If it is going to be a pump and dump it would usually go down something like this:

1. Build up the appearance of the beginnings of operations.

2. Start issuing press releases about all kinds of exciting sounding partnerships and new products, etc.

3. Possibly start booking revenue, never mind that it is from a related party.

4. Hire a network of promoters that hype the stock beyond belief for a cut of the profits.

5. Issue "big news", and possibly create artificial volume by being on both sides of trades.

6. Sell into the buying frenzy.

[peter1234]

Doubled today, capitalization now $3.5b.

???

 

"I can calculate the movement of the stars, but not the madness of men"

Sir Isaac Newton

;)

[wachtwoord]

Doubled today, capitalization now $3.5b.

???

 

"I can calculate the movement of the stars, but not the madness of men"

Sir Isaac Newton

;)

 

And that's why shorting is dangerous. There must be money to pick up for people who know what they're doing here (in shorting that is) but I'll pass.

[mcliu]

$4.3B now LOL

[writser]

IB showing me 58.2K shares available to sell short... tempting.

 

Hah, that was a _very_ expensive lesson.

[Liberty]

http://www.businessinsider.com/a-closer-look-at-introbizcom-2014-7

 

The company's stock gained nearly 25,000% in just 16 trading days, giving it a market cap of over $4 billion. But as we noted, it's not clear if the company really exists, as financial statements indicate that it has no revenue, assets, or full-time employees.

[wachtwoord]

For educational purposes: anyone shorting this? Care to elaborate?

[yadayada]

I think the reason it is going so high is because of very bad liquidity. So if you have a take on that, then you can short? Maybe if you see signals that insiders are starting to dump hard.

[Liberty]

I think the reason it is going so high is because of very bad liquidity. So if you have a take on that, then you can short? Maybe if you see signals that insiders are starting to dump hard.

 

Nothing goes up 16,500% in less than a year just because of liquidity issues. Something seriously weird is going on here, and I pity anyone who has lost their kids college funds in the past few months shorting this...

[benhacker]

Borrow is unavailable at IB, with an indicated rate of 120% annualized to borrow.

 

Short squeeze kids... massive short squeeze.

 

Anyone who actually owns shares in this and isn't selling I would love to know why.

 

Ben

[yadayada]

Cynk Technology Corp., formerly Introbuzz, Inc., is a development stage-company. The Company intends to develop a social network business. Social networks are Web based services that allow individuals to post a profile and link their profile to other friends and organizations. The Company intends to develop a database of professional and other business persons, as well as other interested persons in providing and utilizing contacts.

I love how they also explain what a social network is haha. It is like this is some kind of time travel thing gone wrong. They travelled back from 2004 or something and by accident it is still valued at 5 billion$.

[bobp]

Maybe they're changing the name to Cynk .Com. Adding .com 15 years ago was enough to get a double or triple out of any non-existent company.

[fareastwarriors]

http://www.cnbc.com/id/101825780?trknav=homestack:topnews:6

 

Penny stock soars to $6B, and even the auditor is perplexed

[peter1234]

Here is a good summary in the WSJ

http://blogs.wsj.com/digits/2014/07/10/a-social-network-with-no-members-but-a-4-billion-valuation/

 

Here is a good article on Seeking Alpha explaining the scheme: trading between insiders, creating short squeeze

http://seekingalpha.com/article/2309115-cynk-technology-is-the-new-scheme-in-town

[wachtwoord]

Here is a good summary in the WSJ

http://blogs.wsj.com/digits/2014/07/10/a-social-network-with-no-members-but-a-4-billion-valuation/

 

Here is a good article on Seeking Alpha explaining the scheme: trading between insiders, creating short squeeze

http://seekingalpha.com/article/2309115-cynk-technology-is-the-new-scheme-in-town

 

Isn't this what the damn SEC is for? I hate out non-free market but stopping things like this should be one of the benefits (which i don't think outweigh the disadvantages). If the SEC can't even do something about this, why don't disband them altogether and save a ton of money?

[NeverLoseMoney]

CYNK halted: https://www.otcbb.com/dynamic/marketwatch/mwsubhome.stm

 

Halt Code U3: "Trading Halt - Extraordinary Event Halt

Trading is halted because FINRA has determined that an extraordinary event has occurred or is ongoing that has had a material effect on the market for the OTC Equity Security or the security underlying an OTC ADR or has caused or has the potential to cause major disruption to the marketplace or significant uncertainty in the settlement and clearance process."

[augustabound]

Business insider attempted to call the CEO and got, "Jason".  ;D

 

[wachtwoord]

http://static2.businessinsider.com/image/53c0457669bedd481078d753-758-570/javier-romero-2.png

 

Such a shame Nokia already hired a new CEO :(

[augustabound]

Mo money, mo problems.  8)

[Liberty]

More details on this mess: http://www.businessinsider.com/cynk-founding-2014-7