SK3 Group Inc. (SKTO)

[nopancakemix]

Is SKTO Next to Get Halted?
Another shady stock was halted today.
The SEC pumped the breaks on the entire MJ sector with the PHOT halt, taking out the Jan 1 CO legalization momentum at the knees.

How can SKTO be reporting revenues that are 3-5x the company's market cap, revenues they have been only able to collect a mere 1% of? Either this company is vastly undervalued by the market or people just refuse to believe the numbers. Clearly option 1 is unlikely because in today's markets, share price is not beholder to fundamental metrics but is dictated by what people will pay.

So I'm thinking option 2 is the only answer; people just do not believe what SKTO is reporting.

I'm not here to bash. SKTO has been quite rewarding to me. I got in at .007 and sold a large portion at .04, realizing a healthy profit and paying for the leftover position. I was itching to sell at .07 but regrettably did not because we were all riding the momentum, hoping for that blue sky breakout.

A few weeks back I posted SKTO was on the chopping block in my portfolio. Instead I dumped CBIS which was a good move. SKTO is so low right now that I have no reason to sell. Even if I loose the entire position, I wouldn't be too upset considering it's paid for and then some. But I sure as heck would not be buying SKTO right now.

I think SKTO has a very good likelihood of being halted for two reasons;
1. The earnings numbers are just ridiculous. $30m in revenue and the company's market cap is $10m? They cannot even collect the revenue! How on earth are they going to show contracts and purchase orders to account for those numbers when the SEC comes knocking?

2. PharmaJanes is supposedly a medical MJ delivery service. That's illegal under federal law. Look I'm the first to say those laws are unjust, outdated and ridiculous but I don't make the laws, I just break them. PharmaJanes is equally as likely to be shutdown by the DEA as SKTO is likely to be halted by the SEC.

I'm sorry guys. I don't mean to pour salt on wounds as this is already a tough time for the MJ equities market but I'm not impressed at all by SKTO or SK3.