Here's proof another tech bubble is waiting to pop

in internet on 2014-07-10 10:08 (#3Q7)

If the tech market experienced a bit of a downturn not long ago, it would now seem it's on the rebound, and investors are looking for the next dot-com miracle. The proof? Stocks like this one.

Check out the CYNK stock, linked to a company called Introbiz. Registered in Belize, chartered in Nevada, one employee, totally opaque financial statements. Zero revenue, $1.5M in operating losses. No assets. And yet, the stock is up 25,000% from $0.10 to $14 per share in the last 16 days.

What does the site do? Looks like an ersatz social networking firm with a vague charter of connecting you to famous people. No idea how, who, or where. This is a bubble at its finest, and you know what they say about a fool and his money ...

Penny stocks are the wild west (Score: 2, Insightful)

by marqueeblink@pipedot.org on 2014-07-10 22:38 (#2EQ)

Pyramid schemes, pump 'n dump, perpetual motion schemes, and greater fool theory (as in, I'll sell to the greater fools coming in after me) abound.There's one called Global Digital Solutions that was briefly part of the NH race for US Senate, when it was discovered that one of the GOP candidates had accepted a stock grant to be on the "advisory board" of a company that had no products and no sales. Their web site is full of visionary pronouncements and press releases, though, as well as a couple amusing filings with the SEC.

Re: Penny stocks are the wild west (Score: 2, Insightful)

by zafiro17@pipedot.org on 2014-07-12 21:29 (#2FP)

Unfortunately, I'm receiving email about this crap every single day. "this stock is ready to blow!!!1111" and the like. I have one email account that is protected by zero spam filtering or equivalent, and the address is posted frequently to public places. Gives me a good idea of what it's like to surf the Internet without a condom on, so to speak.

This penny stock stuff is scum, but it's clearly making someone filthy rich, so it's here to stay.