Todor Pichurov

SK3 Group, Inc. (OTCMKTS:SKTO) Shambles Back to Over a Cent

by Todor Pichurov September 3, 2013
6SKTO_chart.pngFriday saw SK3 Group, Inc. (OTCMKTS:SKTO, SKTO message board) pull itself out of sub-penny land and close the session just a smidgen over $0.01 per share. The movement was an extension of the late Thursday volume boost the stock caught - SKTO moved 14 million shares on Friday, or a little over three times its average.

The company originally came into the limelight riding the aftershocks of the February marijuana sector surge. Going from under a cent to intra-day spikes of $0.08 within two weeks may have been the order of the day this spring but it's not anymore as the price has slowly descended from $0.05 to under a cent in the last four months.

The last financial report from SKTO was made public just two weeks ago and it contained the following figures:

  • zero in cash
  • $18 million in receivables
  • $893 thousand in current liabilities
  • $13.4 million in revenues
  • $13.2 million in net income

Despite the sizable revenue and income numbers, the company is still cashless. Dilution may also be a point of interest for some traders. From mid-April to mid-August this year SKTO diluted its common stock by about 50%, going from 363 million to 592 million outstanding shares. Only 40 million of those shares were issued for acquisitions, with the remaining 190 million issued to clear convertible debt.

Some may also wonder why a company that is turning over ten million in quarterly net income happens to be unsteadily hovering around the $0.01 mark or why the same company is paying under $600 in rent expense and under $1 thousand in travel expenses for the same quarter but this is a question we cannot answer and we advise that you do your own due diligence on the matter.

714MJNA_chart.pngAt the end of the day, SKTO did the best job of maintaining its price levels after the Thursday hype-spike that rippled across the whole marijuana sector, as it managed to close green on Friday. Medical Marijuana, Inc. (OTCMKTS:MJNA) was less fortunate and dropped back 18%. Hemp, Inc. (OTCMKTS:HEMP) followed suit, slumping 32% after the spike.

Comments 0

Type the characters that you see in the box (5 characters).