SK3 Group, Inc. (PINK:SKTO) Rushes Ahead as New Medical Marijuana Star
Finally finding a vocation has proven a positive influence for the stock of SK3 Group, Inc. (OTC:SKTO). The company, formerly advertising itself as a diversified holding, and barely traded, shot up after it announced it will become a vehicle for a California-based medical marijuana company. 
While SKTO is an attractive mover, it comes with a new skull and bones warning from the OTC markets, imposed for aggressive spam campaigns that create disproportionate stock moves. Indeed, SKTO has not filed with the SEC since 2009, and as a pink sheet its latest report was in 2011. But this does not stop SKTO from bombastic promises, as it sent out a press release stating an expected revenue of $30 million in new contracts for medical marijuana. 
It is still unknown if throughout 2013 such revenues will be realized, and we are yet to see if SKTO can file timely reporting on the assets and other significant contributions from its new subsidiary, Medical Greens.
Without the bid for medical marijuana, SKTO claimed to afford logistics for the alternative health industry, but its scant financial information reveals an unconvincing picture:
- $191 current assets
- $230, 960 total liabilities
- $344,808 net loss
As we see, fundamentals have little to do with the stock doubling in price on Friday, and reaching still very accessible and underpriced 4 cents. Previous daily climbs, such as the one on the last promotional day, March 11th, reached 450% mid-trade. The sole pumper, Stock Analyzer, used mostly technical indicators for this ticker, having little other fundamental information, and ultimately SKTO ended up with a skull and bones warning.
SKTO is also coming a bit late to the medical marijuana game, as several tickers went up already over the past months. Caution is needed if one of those companies is selected, as some offer a more solid business prospect than others, and the industry has attracted many previously defunct penny stocks with promises of investor interest and quick gain. The firs three months of 2013 have been good to the stock of Medical Marijuana, Inc. (OTC:MJNA) and to an extent for Growlife, Inc. (OTC:PHOT). The latter, though, had a rougher ride and erased 50% of its gains in the past days. Joining the medical marijuana ride should be up to your discretion and your own estimation of how much losses you could afford.
