Abandoned Tech Company Now Worth $5 Billion

[Iron]

http://mashable.com/2014/07/10/cynk/?ut ... -main-link

You'd have thought investors would know better after the 2000 dot com bubble.

[steven1976]

I think the last para gives it away Jeff. Its a pump and dump by the look of it. Worthless, just a few shares been passed around at 20$ to create a price. Few hard sales and then dumped into a dollar.

[Iron]

Trading has been suspended - I wonder why!

http://www.cnbc.com/id/101826786

I wonder if this is the only company in history with a multi-billion dollar market valuation that has just one employee!

[Iron]

I was just reading about pump and dump on Wikipedia:

'A more modern spin on this attack is known as hack, pump and dump.In this form, a person purchases penny stocks in advance and then uses compromised brokerage accounts to purchase large quantities of that stock. The net result is a price increase, which is often pushed further by day traders seeing a quick advance in a stock. The holder of the stock then sells his stock at a premium.'

I'm sure that kind of thing would never happen on Betfair though...

Jeff

[Zenyatta]

I was just reading about pump and dump on Wikipedia:

'A more modern spin on this attack is known as hack, pump and dump.In this form, a person purchases penny stocks in advance and then uses compromised brokerage accounts to purchase large quantities of that stock. The net result is a price increase, which is often pushed further by day traders seeing a quick advance in a stock. The holder of the stock then sells his stock at a premium.'

I'm sure that kind of thing would never happen on Betfair though...

Jeff

No cynicism intended right Jeff? It goes on on Betfair all the time; in fact if gambling markets were regulated the same way the financial markets were, I'm pretty sure half the people trading on Betfair would be under arrest.

The analogue to 'pump and dump' goes on all the time in the lower grade UK horse racing markets. You can routinely see big price spikes (pumps) and then the sudden arbitrary retracements (dumps) as prices are deliberately pushed back and forth.