We see stories all the time about apps and websites selling for ridiculous prices even though they don't have any real way to make money. Remember when Facebook bought Instagram for $1 billion? The sales sound ridiculous, but usually the companies being bought bring something else to the table like proprietary technology or a great business model.
That's not the case with Cynk. This one-time penny stock's price has risen over 24,000 percent in the last few weeks and no one is sure why. It only has employee, over $1 million in losses and doesn't have many users.
Yet the company has raised $60,300 from issuing stock, and now has 291 million shares worth around $5.9 billion based on the price today of $20.19. (The company’s tiny number of traded shares mean there’s not actually anywhere near that much money at stake.)
But, before you jump on the bandwagon and start purchasing stock, make sure you know more about the company because it sounds too good to be true. The original creator is a Las Vegas promoter named Kenneth Carter who claimed to create software that connects fans and celebrities. But, the only evidence of this software is a website that seems to get little traffic.
Carter isn't even with the company anymore, and it has since changed hands twice! It is now run by a guy named Javier Moreno in Belize!
The company didn't pick up steam until a few weeks ago when a bunch of similar looking tweets flooded Twitter talking about the big jump in stock prices. The stock value then jumped from under 10 cents to over $14 in a few weeks!
Penny stocks are known for their extreme ups and downs, so be careful before falling for stocks like this that look too good to be true.