When the the first bottles of Medical Greens’ new medicinal cannabis product, T-Hydrocan™ RMC 40 hit the online shelves last week, the news had as much of an impact on the penny stock of SK3 Group, Inc. (SKTO) as was their 2013 annual report. With almost half of their sales, $25,051,486, written off as bad debts, aka allowance for doubtful accounts on the asset portion of a balance sheet, the slide of SKTO stock since it’s mid-March high of 0.044 continued thus wiping out any gains not booked since mid-January. Having been shoved off the top 20 OTC stock traded list and left to drown in it’s pool of red ticks, today offers a glimmer of hope for those who got bagged this week if they are smart enough to sell into the gap before the convertible note holders do.
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SKTO Stock Quote
Market Cap: 11.17M
Last: 0.016 ▼ -0.0004 (-2.44%)
Dollar Volume: $308,055
14-Day RSI: 30.62%
1st Resistance Point: 0.0178
1st Support Level: 0.0144
52Wk High: 0.0735
52Wk Low: 0.0023
It’s been over a year since we did a piece on SK3 Group’s SKTO and it seems that they should have quit while they were ahead when they announced that they had booked $5 million in Q1, 2013 profits. After looking at their alternative market filed annual report for the year ended December 31, 2013, if they can’t collect on the massive amount they are carrying as accounts receivable, they had better hurry up and close the deal with Alternative Energy Partners, Inc. (AEGY).
Filed on April 15th, SK3 Group reported $52,764,773 in total revenues for the 12 months ended December 31, 2013. However, nearly half of that amount, $25,051,486, was written off as bad debts expense which is what a lot of traders over the past 6 weeks have been forced to do with their holdings of SKTO stock.
On April 4, 2014, SK3 Group entered into a definitive Agreement and Plan of Merger with Alternative Energy Partners, Inc. so they can have their on-line billing and payment services to marijuana collectives. If and when the deal is closed, AEGY-SK3 Acquisition Corp., a newly formed Colorado corporation, will be the surviving entity in the merger.
AEGY stock, like SKTO shares, also had it’s better days at the very start of 2014, running from 0.0003 to as high as 0.119 at the end of January. Since then, like SKTO shares, AEGY stock has been on a bumpy, downhill road down to 0.003.
So, not only does SK3 Group or Medical Greens, however you decide to approach it, have a serious collection issue for their products that they are shipping and making available to these online sites like www.pharmajane.com, but now you have the additional issue of having another sub-penny stock getting shares issued to its shareholders if and when the deal is closed. Considering both have been subject to the gravitational pull of reality now that marijuana is as cliche as oil was 3 years ago, SKTO and AEGY are best left to be watched until the dust settles and the share structure can be better assessed for this AEGY-SK3 Acquisition Corp.
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About SKTO Stock
SK3 Group Inc., bka Medical Greens Inc., is a development stage healthcare logistics and fulfillment consultancy company focused on the delivery of alternative care and medicine. Medical Greens currently provides licensing, management, and logistic services for Medical Marijuana collectives throughout California.
Issued and Outstanding: 697,940,303
Last 5 Trading Sessions:
SKTO, along with PSID, TQLA and GRNE, have all had penny stock alerts issued on them overnight and are surely all due to see a gap up at the open. Bid sitting for a piece of the plays is likely where most new traders will be at, while bagholders of SKTO stock and AEGY might get a chance to get out a little higher while momentum riders of PSID, GRNE and TQLA can be looking to hand off their shares to newbies who should be preparing for their end of semester exams or still partying from Spring Break.
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