The Mysterious Rise and Fall of Penny Stock Cynk

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July 10 (Bloomberg) -- The financial world has become obsessed with Cynk Technology, a stock that sold for a few pennies for most of its existence before exploding more than 36,000 percent to give it a market value exceeding $6 billion. Tom Giles has more on "Bloomberg West." (Source: Bloomberg)

The ceo.

What is going on here?

It dropped 20-something percent right after we had a conversation on our show.

People are seemingly wising up, and yet this thing is worth $4 billion when the product is unknown.

Is there more to this company echo -- company?

It is astonishing, emily.

We have spent a lot of time try to figure out exactly what is going on with this company.

You go to the otc markets group website.

They say, buyer beware.

Questions about fraud, spamming people.

We tried to track down their headquarters in belize.

We spoke to someone in the office building who said, we know nothing about that suite number, that company.

We have not been able to track down the single employee listed.

No revenue, as you pointed out.

Huge mystery as to what is driving the stock.

It is certainly getting a lot of attention.

And people are taking a closer look.

We will certainly be paying more attention to a going forward.

There are reports, tom, that there was a barrage of tweets in june saying the stock was on the way out.

The stock was going up.

Stock was going up.

And that may have been was started driving this thing up.

We are in an environment where people are looking for what is the next big thing in tech?

What is the next big thing in social?

What is the next big thing in digital, on the web?

People are looking for places to invest.

Obviously there were a lot of people who got behind this.

As you said, this as a market value greater than amd or aol, several other big tech companies.

A lot of people bought into the hype on some level, thinking there was something there.

Seemingly out of the blue, it has come onto everyone's radar screen today.

I think it is a testament to the environment we are seeing and it is a technology sector where stocks are going up and up and up and everyone is wondering when they are coming down.

It is interesting when you talk about a bubble in valuations.

Is facebook overvalued?

Is twitter overvalued?

But here is a company as far as we know, no assets, no revenue.

Someone made a lot of money on this grid this is not a joke.

-- someone made a lot of money on this.

This is not a joke.

I shudder to think the people who will lose money on it.

We have not been able to verify any information other than what we saw in the filings.

We are trying to track down this company, what exactly they do.

You get on their website, they offer you information about how you can get in touch with the liberties and venture capital -- celebrities and venture capitalists.

It is something that people might find intriguing.

As you dig deeper, they are asking for information, to deposit funds into a paypal account.

There are aspects of the website that do not work properly.

The basic information that you would need, even if you were willing to give away your money for such a questionable venture.

Right.

Has the fcc said anything -- has the sec said anything?

Is their apparent fraud?

I can't speak to that question.

We have tried to reach out to the sec.

They are not commenting on the issue.

You have to think someone is taking a look at this given the rise in the stock and the potential that someone is going to lose a lot of money here.

All right, tom giles.

We will keep an eye on this.

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

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