A social networking company with no revenue and no assets is seeing its stock soaring—to a market cap of well over $4 billion. The firm’s meteoric rise is so unlikely, that even its last auditor says it defies logic.
CYNK Technology, which is based in Belize according to an SEC filing and only has one recorded employee, runs a social networking site called 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 has now rocketed to almost $15 on relatively low volume.
CNBC could not reach the company. The phone number listed on CYNK’s SEC filing was answered with a recording that said the number was unassigned.
“Who knows if insiders are trying to pump it to a high price?” CYNK’s last auditor, Peter Messineo, said in a telephone interview Thursday with CNBC. “All I know is that I disassociate from this. … You issue a report on something and then they pump and dump.”
Messineo, who said his last review of the company was on Oct. 31, 2013. added that he works in a “very s—y industry.”
“I’m a one-person shop. I do my due diligence and then they go dark,” he said.
This has not stopped many from criticizing Messineo online for his connection to CYNK.
As for CYNK, he said he barely recalled the company, and had to search through his files before summarizing what he knew.
“They were all but a shell company other than the plan for what they were going to do: Issuing some stocks and paying professional fees, they had some research and development—they were trying to do something on the programming end, so something was going on,” he said. “Nothing to generate revenue, nothing like contracts, nothing of that sort.”