There are companies who have a steady trading volume in most sessions, then there are companies like Smart Kids Group Inc. (OTC:SKGP) that have no trading activity on the stock market one day and a hype on the other. Exactly the case this week.
Not a single share traded last Friday; not a single share traded this Monday. On Tuesday, however, things are quite different. It is a day of a 28% increase in the share price, it is also a day of 673k shares exchanging hands, the session closing at $0.0018. Still in sub-penny levels, but SKGP has been there for a whole year now with only one attempt of getting back to $0.01 in June 2011.
So, why this sudden interest in Smart Kids Group Inc? Well, two reasons come to mind. On one hand, it is the announcement that day. On the other – the promotion that costs more 120 million shares, according to the disclaimer. Not a number to go overlooked, especially when dealing with a sub-penny stock. Opportunities for profits exits, but much of risk completes the investment picture.
Just one side of the picture. It is also important to mention that there is a certain lack of financial statements in place. For interested parties, it is not an easy task to understand how the company is doing this year, especially after March. There is a quarterly statement for the first 3 months, but that`s about it. Nothing in terms of financials ever since, even though the third quarter would be over soon. [BANNER]
All of the above are just parts of a complicated picture where, as mentioned, opportunities for profits go along just fine with high levels of risk. SKGP could be as much appealing to one type of investors as appalling to others.