New World A-Comin'

[Monksdream]

If anything, CYNGN (CYN) serves as a prime example of how social media pumpers pounce on a recent IPO that made a pricing bottom. In the brief search I've done of the company's website I also came across a web article from the Benzinga people. The webpage will include irritating pop up ads from Robinhood.

https://www.benzinga.com/money/cyngn-stock/

I particularly liked the description of the company as "non revenue producing." So how did the company get started? Probably from venture capital investors who also funded the underwriting of the IPO, which was on October 21. These investors will own the majority of the outstanding shares, minus what is currently owned by the retail participants and the institutional participants.

Apparently the pump began last week due to a promotion by Jeff Brown, one of these self appointed technology gurus who makes a living, probably a darned good one, selling retail participants his paid subscription newsletter. I decided to subscribe to his freebie email which will always include a video of his latest pitch.

The man is slick, to say the least. He reminds of this Billy Mays character (I think he OD'd on cocaine) who pitched a product called Oxyclean on TV, among other products before he died.

Don't allow yourself to be misled. In no way does this company enjoy what is known as a first mover advantage as it pertains to the AI software it wants to sell to manufacturing companies and warehouse operators. Plenty of competition from much larger and better capitalized firms such as Fortune 500 companies like Rockwell Automation (ROK) which has been in the business much longer.

That said, it is all about the recent hype and the challenge facing the social media participants to keep the momentum going. What is interesting to observe, in my view, is the degree of trading volume it took to move the share price a whole dollar.

And with that said, I will repeat a thought I made about Mullen Auto, that traders believe it is easier for a $2 stock that is being heavily pumped to double in price compared a stock priced much higher in a comparable time period of a few trading sessions or less.

Welcome to the game