Cynk Technology: The $4B Company No One's Heard Of

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July 11 (Bloomberg) -- Former SEC attorney Jacob Frenkel and Bloomberg's Julie Hyman discuss Cynk Technology being suspended from trading with Carol Massar on "Street Smart." (Source: Bloomberg)

Attorney and julie, i have to kick it off with you.

What is the latest?

They have been suspended from trading.

There is a lack of information about the company and what information is out there, there are some doubts about its accuracy and veracity.

That is one of the reasons we see the sec -- the other reason is there are questions about trading in the stock.

Whether there has been some sort of stock manipulation, the so-called home and dump.

We saw tweets that were identical promoting the stocks.

That is when we started to see more of a spike.

I have already accelerated.

That also got the attention of some people.

What is unusual here?

You do have these penny stocks that are volatile.

A couple of things are unusual about this.

The most notable is the size.

It got too at one point yesterday a $5.6 billion valuation.

Right now it stands at a $4 billion valuation.

The float of the company is so large.

There are show many shares -- so many shares outstanding.

I talked to a penny stock trading guy who makes his living doing that.

He noticed that in one of the filings it mentioned both a 1% 75 reverse stocks lit and a 75 -- stock split and a 75 for a stock split and it could dramatically increase the flow.

What happens when you call the company?

The you cannot -- you cannot call the company.

Either you get a message that is not returned, they are disconnected in a more recent filing with more otc markets -- there was a gentleman who was named as the current ceo.

In that doesn't actually exists.

Hopefully you can answer some of these questions.

It doesn't pan out to be anything.

They did a good job at whatever it is supposed to do.

Julie outlined all the red flags for the exact reasons the sec uses.

Him what is more in power is the power to this -- power to suspend trading stocks.

All the phenomena, all the dynamics that you identified, i was thinking here we are in world cup season that if you are roughly handing out red cards, it may be empty of players because there will be somebody handed out.

Red cards are the type of issues to which the sec responded appropriately.

It is now investigating and may bring in action very quickly.

The challenge for a regulator -- and i was involved in small-cap stocks back in the 1980's -- i have been working this area for a long time.

The challenge is those who engage in stock manipulation are so far ahead of the regulators.

Now with technology and the internet, now with the ability to manipulate stocks from all over the world, the ability to recover assets and really be very challenging to making the investors hold you -- investors hold area -- investors hold.

You don't learn about these things at the beginning.

It is only when the manipulation starts that those flares go off and the agency is able to respond.

Thank you so much for your insight.

Thank you julie hyman.

Stocks ending higher toward the

This text has been automatically generated. It may not be 100% accurate.


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