You may not know it but there’s a greater than zero chance that your 401k is invested in the following company: CYNK
CYNK “was founded as a web based social network that allows individuals to post a profile and link their profile to other friends and organizations.”
According to official filings it has 1 employee, no revenue, and no assets. Until June it was a stretch to call it a penny-stock. Today though it’s trading between $12-15 a share. It is at the time of this writing worth over $5 billion.
In case you are curious to what this looks like, here’s a quick chart of the stock.
What scares me is that someone is buying this stock, and while that person/algorithm may not lose his job, someone is going to get hurt once reality reasserts itself. When you have some commentators at ZeroHedge suggesting it would be immoral to short the stock, you know the situation is bizarre.
Update 7/11/2014: Trading has been suspended by the SEC. It is unlikely to resume. There are firms now holding around $5 billion of worthless stock in their portfolios. Those portfolios represent the sweat and hard work, money earned by real people that cannot be recovered. Let’s just hope that most of that $5 billion was instead owned by the idiots blowing up the current stock market bubble.
Update 7/15/2014: This trader lost his job by shorting the stock too early and getting burned on it the next day during a short squeeze. Of course he doesn’t blame himself; he blames the SEC even though, to quote the now unemployed trader, “My 10-year-old knew it was a scam. It was a complete joke.” Yet neither he – nor the investors who paid for his stupidity – are laughing.