A funny thing happened in the stock market this week: Little-known company CYNK Technology (NASDAQOTH:CYNK) ran up to a high of $21 per share, an enormous gain from its $0.06 per share price in June. And then the SEC halted trading of the stock until July 25 at the earliest.
Why? It's unclear that a real business exists behind the ticker. With only one employee on record, and a $1.5 million loss on the books last year, CYNK Technology certainly doesn't seem to have earned its $5 billion valuation at yesterday's peak. Stock Advisor analyst Sara Hov and Rule Breakers analyst Simon Erickson talk about what powered such a huge run-up, and the biggest takeaway for investors from this story.
Sara Hov has no position in any stocks mentioned. Simon Erickson has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.