SK3 Group, Inc. (PINK:SKTO) Slides by Half

After a decent start of the month, SK3 Group, Inc. (PINK:SKTO) is deflating, with six consecutive days of sales. After adding 450% in the middle of March, the ticker is trying to resist the sales and avoid slipping back into double-zeroes. Currently, SKTO trades around 3 cents, and with the lack of a new booster in the form of a promotional email or a press release, the slide may continue.

The latest message from the company is that SKTO has been busy contacting medical practices where it could potentially supply medical marijuana. The future will show how this would affect the balances of the company, but so far, SKTO has the following resources:

• $191 current assets

• $230, 960 total liabilities

• $344,808 net loss

SKTO hopes to remedy this situation by reportedly contacting hospices and similar medical practices, ensuring $30 million of contracts in 2013. The income should come from its newly acquired subsidiary, Medical Greens. As a constant negative, SKTO will meet even greater competition as medical marijuana companies actively build their distribution network in the states where therapeutic usage is allowed. 

But even if this does not materialize, the medical marijuana stocks are currently highly speculative, marking a revival in spring with paid promotions or just riding the general rise of the stock markets. A rising trend, however, may speak of a correction in the future, especially following emailed pumps. SKTO may still see another promotion, if its price is deemed low enough, as pumpers tend to pick up forgotten tickers.

The sector bellwether, Medical Marijuana, Inc. (OTC:MJNA) has also fallen on selling, sliding down a third in the past month to 25 cents. While the company was part of many mentions and promotions, it differs from the regular penny stock that dabbles in medical cannabis. MJNA holds larger long-term potential.

Neutra Corp. (OTC:NTRR) resembles SKTO more closely, since it switched to medical marijuana only in the past weeks, prompting a rapid appreciation of its stock. The ticker aimed to reach $5, but since then fell rapidly on selling, still priced far above the real potential of the company. While such tickers may yield pleasant surprises, don’t rely on that and make your own decision about the acceptable losses before committing your investment to fast-moving stars in what has come to be known as the dot-bong boom.