Cynk has only $39 in assets and almost $52,000 in liabilities, according to its most recent quarterly filing available on OTCMarkets.com.
The company has lost money for several quarters and has no income, according to annual income statements available on Yahoo Finance.
Bubbles come and go, but this company’s valuation defies logic.
It is not clear what has driven the company’s shares to unfathomable heights – but a pump and dump scheme could be the culprit.
Pump and dumps schemes work when brokers work to sell a penny stock - at six cents per share and trading over the counter, Cynk was a penny stock - to unsuspecting investors in order to drive the stock price up.
Straw buyers also take positions in the stock, and sell their shares at a predetermined price where they realize a huge profit. Once they sell, the stock goes back down again and everyone else loses their shirt.