CYNK Technology a penny stock has stunned the trading community when it rose more than 36,000% starting from less than a dime to $21 per share and then dropping to $13.90 per share when SEC stepped in and stopped it’s trading. CYNK is a social networking company based in Belize with only one employee and runs a social networking site IntroBiz. That site says it allows users to “both buy and sell the ability to socially connect to individuals such as celebrities, business owners, and talented IT professionals,” but it is not clear how many registered users it has. CYNK’s stock was valued at less than a dime in June, and rocketed to over $20 at one point Thursday morning.
CYNK Technology reached its peak at $21 per share on Thursday and had fallen to around $14 per share when trading in CYNK Technology was halted by SEC on Friday.
SEC is investigating now whether the market was being manipulated meanwhile the traders involved with the company are frozen and stuck. Penny stock trader Timothy Sykes has been caught short on the stocks.
Sykes said he has never lost money on aggregate after an SEC halt—although few stocks have spiked such a huge percentage as CYNK, which was less than a dime in June and stopped trading at $13.90. As for those who have lost large amounts of money on CYNK? Sykes said it should be a learning moment.