Disney or CYNK…

Disney is up 86x in the last 30 years. Slow pokes. For you english majors let me translate….if you had invested $1 in Disney 30 years ago, it would be worth $86 today. I would dig up a quick CNBC clip for you if they had one in the last year.

If you had taken that one dollar in June of 2014 and had invested it in CYNK Technologies…you could buy The Los Angeles Clippers (one of their hats for sure).

The financial media has latched on to this story like my baby puppy latches on to my sweaty sock.

CNN Money has the money (no CNN pun intended) headline…’Tech stock soars 25,000%. No one knows why‘.

My pal Eddy Elfenbein has the best explanation of it all tonight in his free email:

Cynk has a paper value of $6 billion. The stock has rallied more in the last three weeks than Apple has since their IPO 34 years ago.

Beyond my mocking, there’s an important lesson here. Those of us who force rationalism and sobriety on the market are engaged in a constant war, and we’re not always winning. The suckers are out there. Who knows how garbage like Cynk gets going? Once people start buying it, the irrational exuberance mentality builds on itself. Soon people bid it up simply because they think the stock will go up, which in turn causes more people to buy…which in turn causes the stock to go up.

Remember, there are lots of finance professors today who tell us how efficient the market is, who say that the market is rational and that it’s impossible for an investor to beat the market over the long haul. Please. The market is made of humans, and it has all our virtues and vices. The rally in Cynk Technologies is a perfect example.


Every investor can own a $DIS in their lifetime but nobody catches a $CYNK. The returns are real, the myth is that you can catch it. This stock market boom led by social, mobile, local won’t end until there is a daily penny stock ‘woot’ or ‘buzzfeed’.

The best investors have turned off financial television. CNBC ratings prove that. And, if you call financial television ‘entertainment’ in the abundant content year of 2014, you are a liar, a fool and the sucker.

As for the future of financial ‘television’ …it is not here yet because the multiples in financial media are horrific. Venture capitalist don’t care. I can’t blame them, but that is the opportunity for the right idea and team.


  1. jon knight says:

    amazing. the slightest of dd would have showed that to be a crazy trade to take. amazing. but you know what is truly amazing? there are folks who made big returns if they got out yesterday. i’m sure they are saying “amazing” as well, with a completely different inflection in their voices…

    still. wow.

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