SK3 Group Inc. (SKTO)

[StockWatcher]

SKTO is being manipulated by Market Makers and Brokers alike.
I have compiled some more data from FINRA REGSHO.
You are not going to believe what you see here. Also I have a 60 Minute Chart along with Price Calculations Sheets later in this Post so that you can see what the PPS would be based on $5M dollar increments in revenue. If anyone wants me to show you how this is done please send me a PM with your email and I will show you how to calculate the PPS.

http://regsho.finra.org/regsho-March.html
http://regsho.finra.org/regsho-Index.html

This image shows the increase in the last 2 days of trading.

SKTO Naked Short Information from Fails-To-Deliver from the FINRA Website.



It is amazing to me that they have increased their NAKED SHORT POSITION by 16.0% in just 2 days. YES! I SAID 2 DAYS.

To calculate the above numbers to see if SKTO meets the 4320 requirements, you multiply the O/S x .005 (one half of 1%) to see if the total Short Volume exceeds the .005 of the Total O/S.

It does in all cases above. Which means the Naked Short Shares are not being covered in the Time Frame required by FINRA Rules.

What does this mean to investors? It means the stock is heavily NAKED SHORTED, providing a FALSE AND MISLEADING STOCK PRICE.

Let me help you understand the difference between a Short Shares (Borrowed Shares) and Naked Short Shares.

When a Market Maker (MM) gets a request from you, (Mr. or Miss or Mrs. Investor) and that MM does not have any shares, he will borrow shares against someone else's account by checking with all the Brokerage Houses to see who has shares to borrow. One or several will respond but the query usually uses the first one the it finds. Or they can create a relationship with a specific Broker. Once a Broker offers shares to Borrow, you now have a Short Position against those shares (Short or Borrowed Shares) because they are borrowed shares, not owned. The MMs are required to cover those shares, buy them back within 3 Trading Days.

Naked Short Shares are an entirely different animal altogether. These shares do not exist. In other words the Market Maker is not bothering to "Borrow" shares, they are just filling your order with shares that do not exist. Hence the Term, "Naked Short Shares". Can the MMs just sell "FAKE" , "AIR" Shares? Yes, they do it every day. When those shares are not covered by the MM within 3 "consecutive" business days they become Fails-To-Deliver.

If other investors understood the magnitude of what this means in terms of Broker & Market Maker Manipulation of the Stock Price and what would happen if they were forced to cover, then you would see quite a rush of investors coming into this stock just for the potential of a short squeeze.


http://www.sec.gov/answers/nakedshortsale.htm

In a "naked" short sale, the seller does not borrow or arrange to borrow the securities in time to make delivery to the buyer within the standard three-day settlement period. As a result, the seller fails to deliver securities to the buyer when delivery is due; this is known as a "failure to deliver" or "fail."
For further information on short selling, naked short selling, and threshold securities, please see the Division of Trading and Markets' Key Points About Regulation SHO. Additional information relating to the SEC's activities relating to short selling can be found in the SEC Spotlight on Short Sales.
http://www.sec.gov/answers/shortsale.htm


CSTI (MM) says, here, I can give you all the AIR SHARES YOU WOULD LIKE! What? Are they real shares? (Snickers, with that nasty devious wicked smile, Suuurrre, their real.) All the while us little investors are just putting in our orders asking for shares and in reality the Stock Price should be appreciating, going up and up and up as more shares are pulled out of the Market. Heck we bought 2.8M shares at the end of the day but the stock only move up .01499!!!

YET.... 129,000 shares took it down from .0599 to .045... You ask, "How is that possible?"

2.8M to go up .015 and only 129k to go down the same amount??? The math does not add up does it?

That is what is called Stock Manipulation, by a MM who is suppose to follow the Rules, specifically Rule 4320.

Any type of serious major push and the stock will not only move it will become a runaway locomotive. And we have the Perfect Storm setting up now with a Pincher on the ADX, PPO and OBV.

First look at the Chart! Look at the ADX, the +DI and the -DI. I showed you the repeat pattern setting up the other day on the chart and someone else posted about .043 being support and I agree. It was MAJOR Support.

Take a look at the ADX +DI and -DI, pincher coming into play. This is what happened a few days ago and the stock took off from .035 to .08. With the amount of buying pressure I am hearing coming in and the amount of NAKED SHORT SHARES that will have to be covered, this could rocket to .1224 or even .15 all in one day.

SKTO 60 Minute Chart



Here is a question, why are Market Makers trying to hold the stock down! That is not their JOB!

The MARKET MAKERS JOB is to Make a Market for any given stock. NOT MANIPULATE THE STOCK THE DIRECTION THEY OR SHORTS WANT THE STOCK TO GO! THAT IS ILLEGAL!

But we watched CSTI Lock the STOCK ON THE BID AND ASK all day on Tuesday April 2, 2013.

Now look at these PPS Calculation Sheets I prepared to see where the stock price could be if the MMs were just trading the stock and not holding it down with all the Naked short Shares.

SKTO with $5M, $10M & $15M Revenue




SKTO with $20M & $25M Revenue



As you can see once we have filings and revenues you will have a good idea of where the SKTO Stock PPS should be.

What this shows you is that CSTI and maybe others are desperate to hold the stock down until news comes out. Well that again is not part of their Charter.

Please read the Rule 4320 here and see the complaint form you can fill out at the FINRA website to protect yourself.
The number stands for Fails-To-Deliver for 5 consecutive Days.

Fails-To-Deliver are Naked Short Shares.
http://www.sec.gov/answers/nakedshortsale.htm

See the following link for NAKED SHORT SALE information from the SEC.
http://www.sec.gov/spotlight/keyregshoissues.htm


Market Activity — Regulation SHO/Rule 4320 List

http://www.sec.gov/rules/other/nasdaqllcf1a4_5/nasdaqllcamendrules4000.pdf

A security will be placed on the threshold list if it has a significant fail to deliver position for at least 5 business days. The threshold qualifications are different for SEC reporting issuers and non-SEC reporting issuers (see definitions). Reporting companies are governed by Reg SHO and non-reporting companies are governed by Rule 4320.

Threshold Definitions
Regulation SHO defines threshold securities as any equity security of an issuer that is registered under Section 12, or that is required to file reports pursuant to Section 15(d) and where, for five consecutive settlement days:

there are aggregate fails to deliver at a registered clearing agency of 10,000 shares or more per security; AND the level of fails is equal to at least one-half of one percent of the issuer's total shares outstanding FINRA Rule 4320 defines threshold securities as any equity security of an issuer that is not an SEC reporting security and, for five consecutive settlement days, has:

aggregate fails to deliver at a registered clearing agency of 10,000 shares or more; AND
a reported last sale during normal market hours (9:30 a.m. to 4 p.m., ET) for the security on that settlement day that would value the aggregate fail to deliver position at $50,000 or more.