SKTO is likely to be suspended by the SEC. See all the reasons why in this post on Promotion Stock Secrets. This presents a nice low-risk shorting opportunity. However, due to the low stock price it is not yet a large enough opportunity to entice me.
Interactive Brokers has 4 million shares of SKTO to lend with a 1.25% APR borrow rate. That gets charged on collateral ($1.00 per share) so it is the equivalent of a 25% APR on the value of any short position. With a stock price of $0.05, to short 40,0000 shares requires $100,000 in cash and gets you a $2,000 position. Assuming that SKTO gets an SEC suspension within a couple weeks and drops 75% you cover for $500 and pay $42 for the borrow for one month and you make $1.46% on your $100k of capital used in one month. Very nice low risk trade for anyone who has tons of spare cash. That doesn’t describe me so I’m hoping SKTO stocks goes up a lot more. At $0.10 and above the short starts looking really nice.
Here is the chart of another scam company that was suspended by the SEC not long ago, Southridge Enterprises (SRGE):