SK3 Group Inc. (SKTO)

[stervc]

Why the SKTO Name, Ticker, & CUSIP # Change…

There is much to understand the ”why” a name, ticker, and CUSIP # change of which I will try to explain some key reasons why. I’m just thinking that if SKTO had major news to announce while being interviewed on one of the upcoming Larry King shows, I think they would definitely want to break such announcement out under a name, ticker, and CUSIP # that’s more commensurate towards what they are doing operationally.

I’m not sure if SKTO is heavily shorted or naked shorted as I have not been compiling data to derive such. I won’t even get into any debates on whether or not shorting or naked shorting even exists for a penny stock. I think that the company is simply doing legitimate things with moving its operations as a company to the next few levels. This is basically normal protocol for moving forward with further confirming their legitimacy.

Bottom line, if they get the approval of their requested name, ticker, and CUSIP # change, they will be 100% considered very legit as it will take everything being fine with FINRA and everything being in good standing with the SEC too. This is a fact and anyone can research this for themselves.

Taking these steps will allow for SKTO to be traded fairly and properly in the future ”mainly” because there will be an ”official” “accounting of shares” forced to transpire from doing a name, ticker, and CUSIP# change. This will position the ”new” SKTO to trade fairly for any expected upcoming major volume from the lack of supply of SKTO shares from an anticipated huge demand. I’ll further elaborate below…

This is a revision of a post that I have made a few times in the past on stocks that were doing a name, CUSIP#, and ticker change that might be of some use here for SKTO. A while back I called the CUSIP Service Bureau at 212-438-6565 and had spoken to a few people. I finally had spoken to a guy by the name of Vinnie. Please forgive my redundancy for posting this if it has already been thoroughly discussed. Pay particular attention to what's in bold below. The above phone number is from the link below:
http://www.cusip.com/

Vinnie informed me that a CUSIP# change ”usually” comes with a name change, but not always. He stated that a name change will ”always” come with a CUSIP# change though. He told me that the ”name change” and the ”CUSIP# change” starts with the company's Transfer Agent (TA) coordinating electronically with the CUSIP Service Bureau by linking the company's name and address. Then the CUSIP Service Bureau Coordinates with the Depository Trust Company (DTC).

The DTC will serve as the overseer to coordinate with the regulatory authorities and/or agencies whomever as deemed necessary. Sometimes the TA will coordinate with the DTC too for certain confirmations or transactions as deemed necessary. The DTC makes sure there is proper share accountability for proper dissemination into our brokerage accounts. This is all done electronically.

After the company/TA receives their new CUSIP# from the CUSIP Service Bureau, the company/TA (& legal team) then coordinates with the NASDAQ Officials and SEC for the already coordinated amount of shares as the new inventory. The company/TA will then coordinate with the DTC to confirm the amount of shares and other key info.

After accountability is confirmed by the DTC, the DTC then authorizes the brokerage companies to change all old CUSIP numbers to the new CUSIP numbers electronically within our brokerage accounts. A CUSIP# change is not enough from what most believe throughout the investing/trading community to force a covering ”IF” there is any short or naked short positions.

Personally, I think some companies don't fully understand why it is important to do a ”name change” and ”CUSIP# change” if you are trying to force a covering of a shorted or naked shorted company. A ticker change wouldn't hurt either although the guy informed me that he is not knowledgeable about ticker changes as that coordination goes through FINRA, the SEC, and the company's legal team.

Vinnie, from the CUSIP Service Bureau, explained it to me as such... When stock 1234 changes its name and CUSP# to stock 5678, the shares of stock 5678 are given to them electronically by the TA to replace stock 1234. This is the key transaction. If only a CUSIP# change transpires then a lesser type of accountability takes place. The name change matching the address of the company is what actually forces an exchange of the "old inventory" of shares to the “new inventory” of shares. Without the name change, there is NOT a "movement of shares" from the TA that takes place. Here with SKTO, the share transaction between SKTO and Medical Greens is what will force a “movement of shares” which means that any short or naked short positions can’t be masked as it would if the transaction was done electronically alone.

Only one phase of the accountability process is required to take place to verify accountability when only a CUSIP# change transpires because of the lack of not having a creation of the ”new inventory” of shares by the company/TA. Therefore no movement of shares takes place. This is a simple misunderstanding by many companies, but if not considered, it could be the difference for any type of forced covering of any naked shorted positions (if they exist).

If there is NO DILUTION, a covering of the naked shorted positions should take place due to what's revealed during the accountability process between the DTC after getting the ”new inventory” of shares from the CUSIP Service Bureau if there is not only a CUSIP# change, but a name change too.

Because of the CUSIP# change, the MMs will be required to account for each of the old shares with the new shares. Because of the name change, it's important because it forces the DTC to play a more finite role by not only accounting for the old shares to equal the new shares ”electronically’, but forces them to match a ”new inventory” of shares that have been given to them from the CUSIP Service Bureau as the new official/approved inventory by way of the shares given from the company/TA.

Hopefully this information helps investors/traders to have a better understanding as to the importance of not just a CUSIP# change, but a name change too. That’s why I think SKTO doing a name, ticker, and CUSIP # change could hold more merit than meets the eye for now.

v/r
Sterling