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Dicon Pacific is still owned by HH Brown , not the same Dicon SPNG bought out....
I agree CDE will push $30 in coming days.eom
exactly - RICP will forever have the stench of JD all over it , it was born the child of a serial scammer , its core is wrought with fraud IMPO.
exactly my point , Gold miners are getting rid of hedges in large numbers , they dont want to hedge , they want to finance out of Gold hedges into traditional financing , they KNOW a gold hedge in a rising market is bad news for EPS and PPS.....
Not the good ones... Market will crush a hedger in an up market. Look at the CDE filing , those hedges destroyed a record quarter , we would have had well over $30 million profit w/o the hedges.... If Gold goes to $1500 or $2000 like some say , CDE will be crushed , we could see silver $25 , record production , and LOSE money because of the hedge....
I am LONG CDE stock and still hold a lot of 2010 call options , hoping it does well for sure , but the facts are, CDE hedged gold at super low levels and it is going to eat us alive until Gold goes back down to well under $1k (and you know silver will follow it) or we take the hedge out... The Market will crush a hedger in an up market..... That hedge sux and was total greed imo , CDE could have dilluted shares, took higher interest loan , we got $80million cash on the hedge , we just gave back $39million profit in one quarter.... ugly...
However, losses on derivatives based on the Palmarejo gold royalty obligations, the Franco-Nevada warrant, put and call options, the gold lease facility and forex contracts cost the company $35.7 million in income during the third quarter.
Losses on derivative instruments for the first nine months of this year were $49.6 million, while interest expense was $12 million related to the gold lease facility, royalty obligations and other short-term borrowings.
In spite of an all-time high in revenue of $89.8 million during the quarter, a 146% increase over the third-quarter 2008, Coeur reported a net loss of $17.3 million or negative 23-cents per share, compared to a net loss of $4.6 million or negative 7-cents/sh for the third quarter of 2008.
For the first nine months of this year, Coeur reported a net income of $384,000 and one-cent per share, compared to a loss of $4.7 million or negative 9-cents/sh for the same period a year ago.
Is silver's salvation upon us?
http://www.miningmx.com/news/gold_and_silver/is-silver-salvation-upon-us.htm
[miningmx.com] -- ADVANCES in technology, increasing focus on reducing human interaction with bacteria, and tracking goods and people are all good news for silver and the price of the industrial metal, which has lagged for so long, says Jessica Cross, CEO of VM Group.
Long regarded as the poor cousin of gold, the metal, which is mainly used in industrial applications as well as to make jewellery, has bright prospects, with off take in a spectrum of new products put at just below 350 million ounces by 2020 (see graph below), Cross argued in a presentation at the LBMA Conference earlier this month.
The silver price is currently trading around $17.30/oz, a level that it traded around in the first half of 2008 when it broke up to just shy of $21. These two spikes were unparalleled, certainly since 1985, with the metal touching slightly north of $8.50 just once since then.
Looking at the history of the silver market, Cross said about two thirds of the mined metal is a by product of other minerals like copper, gold and lead, making it difficult to determine a price at which silver production would fall in a natural supply and demand scenario. Being a by-product, the metal will come onto the market almost regardless what the price is for it.
One of the major users of silver, the photographic film sector, is being particularly hard hit as consumers turn to digital cameras. A graph of silver demand by the sector shows a steady decline since a peak above 200 million ounces in the early 1990s to well below 150 million ounces in 2009.
Another anchor on silver prices, which tend to take direction from the waxing and waning gold price, is that a lot of silver used in a range of applications – like photographic film, electronics and batteries -- tends to be recycled, bringing back about 400 million ounces a year of the metal to the market.
But the days of huge recycling could be drawing to an end, Cross said, pointing to a host of technological advances needing silver, including wound care, food hygiene and water, wood preservatives, textiles, solar panels and radio frequency identification tags.
this metal appears to be in the right place at the right time
“These new end uses for silver are set to pick up the demand slack left by the shrinking photographic industry,” she said. “But, unlike photographic film, these end uses do not generate vast amounts of recycled metal. In general... the metal is going to be taken off the market for good.”
Silver’s time has come, she said.
“The change is coming about as a result of silver’s unique properties as a biocide as well as is superior conductivity,” she said.
“The interesting thing is that many of the world’s worries and woes today are playing right into the hands of silver and this metal appears to be in the right place at the right time in a number of applications.”
Radio frequency identification tags, used in identity documents, passports and stock controls, are growing in use. China, for example is spending $6bn to install these devices in identity documents for all its citizens and in transport tickets, she said.
London-based metals consultancy VM Group estimates use of these tags will grow to more than 30 billion by 2020 from around seven billion now. Each tag contains about 10 milligrams of silver on average, absorbing nine million ounces of silver from the 2.3 million ounces currently.
Solar panels and mirrors could absorb another 50 million ounces by 2020 compared to 18 million ounces now. Wood preservative coatings could account for up to 100 million ounces a year as chromate copper arsenic, the existing wood preservative is phased out.
There were no estimates of the amount of silver that could be used in plasters and bandages, which use silver for its anti-bacterial properties. These properties also feed into the clothing and textile sector where body odours and bacteria are eliminated.
Silver is also used in water purification devices and to store food. It could take up around 95 million oz by 2020.
“Superimpose this good news on the tonnages of silver that have gone into the ETFs (silver-backed exchange-traded funds) and you have an underlying strength within this market to justify its current price strength,” Cross said.
The gold:silver ratio is expected to narrow. At current prices you can buy 64.4 ounces of silver for the price of a single ounce of gold.
“The current market conditions indicate that gold has become overpriced and silver has become underpriced, suggesting there will be a shift in assets from gold to silver,” said Jeffrey Lewis, who edits Silver-coin-investor.com.
“Since 1970, the ratio of the number of ounces of silver you could buy with one ounce of gold has run as high as 80:1 and as low as 20:1, with a mean of 54:1. Today's ratio is moderately higher than 54:1; in fact, the ratio is nearing 64:1, suggesting that there will be a correction in either the price of gold, or silver will advance to make up the deficit,” he said.
This article is a printout from Miningmx.com
Poor man's gold may be an investor's treasure
Silver's a severely undervalued 'investment opportunity of a lifetime'
http://www.marketwatch.com/story/poor-mans-gold-may-be-an-investors-treasure-2009-11-13?siteid=moren
TOKYO (MarketWatch) -- Silver's not so much a poor man's gold anymore and investors may soon realize that the white metal's the real treasure.
True, at $17 per ounce, silver is cheap -- trading around 60 times less than gold's record price of more than $1,100. But year to date, it's climbed 52% in value compared with gold's rise of around 25%, according to data from FactSet Research.
Silver is a precious metal, after all, one that has historically outperformed gold in a bull market and doubles as an industrial metal -- and supplies of it are depleting at a much more rapid pace.
"Silver is unique in terms of being both a monetary and an industrial metal," the Bullion Services Team at GoldCore said in a recent report, pointing out that it's severely undervalued. "Silver remains the investment opportunity of a lifetime."
Gold's prices have climbed nearly 11% in the last two months. In that same time span, silver's up by only 3.1%.
And "investors looking for returns continue to wager on higher gold prices, whether it be on concerns over equity or currency markets ... or to make quick short-term profits," according to CPM Group's latest Precious Metals Advisory.
But investors would be better served to turn their eye toward silver.
"Silver is highly correlated to the safe haven of gold and is, in effect, a leveraged sister of the precious yellow metal," according to GoldCore, an international bullion dealer. "Thus, informed investors use gold more for wealth preservation purposes and silver in order to make a return."
'Silver remains the investment opportunity of a lifetime.'
Bullion Services Team, GoldCore
That's particularly important to keep in mind as investors change the way they perceive the paper-asset markets.
As stocks, currencies, bonds and other paper assets have begun to disappoint investors, investor attitudes have been shifting, said Mark Leibovit, chief market strategist for VRTrader.com.
"What begins as a trickle ends as a tidal wave when the panic peaks [and] when public revulsion at the U.S. dollar begins, the tidal wave will become a tsunami," he said.
Under that scenario, "silver, far more volatile than gold, will benefit most," he said.
A split personality
Forced to pick just one, Chris Mayer, editor of Agora Financial's Capital and Crisis said he'd rather own gold. Others disagree.
"Silver does not have the same appeal as gold," said Mayer.
"What did India's central bank buy in record amounts ... [and] what did China double its reserves of this year? Gold," he said. "They aren't buying silver."
"It's not like comparing oil with [natural] gas, where you are comparing the energy equivalent of the two and there is some economic incentive when the gaps get very wide to switch to one or the other at the margin," said Mayer. "That doesn't exist with silver and gold."
And when the global industry remains mired in a slow growth pattern, the market's not going to see sky-high prices for a metal whose "lion share of demand comes from its industrial applications," said Jon Nadler, a senior analyst at Kitco Metals.
It's really silver's "precious side that is holding it up right now," said Ed Bugos, director of mining finance at Strategic Metals Research and Capital. "Its industrial side would be over valued" with the ratio of silver to other commodities having made new highs.
SLV 17.15, +0.23, +1.36%
181614121009FMAMJJASONThe investment figures for silver show this loud and clear.
"Silver's allure as an investment is evermore appealing as a hedge against fading fiat currencies that are getting inflated into oblivion," said Scott Wright, an analyst at financial-services company Zeal LLC.
This is "measurable via skyrocketing investment demand" for physical bullion and exchange-traded funds, he said, pointing out that the iShares Silver Trust (NYSE:SLV) has already increased its holdings by 29% in 2009.
From the start of this year through the end of October, total silver holdings in exchange-traded funds were up 36.3%, according to data from CPM Group.
The sale of silver coins and minted bars also offers a good gauge of demand.
Over at The Perth Mint, total silver ounces sold as coins and minted bars is five times higher in the 2008-2009 year compared with 2005-2006, according to data from the Mint, which is owned by the Government of Western Australia. During the same period, gold ounces sold as coins and minted bars have more than doubled.
U.S. Silver Eagle coin sales were up 72.6% in October from a month ago -- up 106.2% from October 2008, CPM Group data showed.
"Although fabrication demand is important, it is investment demand that tends to have a more dynamic effect on silver prices," said Chintan Parikh, a commodity analyst at CPM Group in New York.
"This is because of the larger dollar volumes of money that can be involved with investment demand, the speed and intensity with which investment demand trends can rise, fall and reverse course, and the ultimately total discretion that investors have over whether they wish to be involved in silver at all," he said.
Fame and fortune
But while some agree that benefits for silver's precious metal characteristics have outweighed the pluses from its industrial uses, that industrial label may soon turn out to be of lesser hardship.
"The industrial uses for silver are numerous and generate substantial additional demand for silver outside its precious metal usage," said Patrick Kerr, managing director at Amerifutures Commodities & Options.
True, silver's suffering from a falloff in demand from the photography world as consumers turn to the digital age, but industries are finding other uses for the versatile metal, including medical applications, and actually consuming supplies as they use them.
"Silver is consumed and gone forever in most applications," said Julian Phillips, an editor at SilverForecaster.com. On the other hand, "huge efforts are made to recover gold, so essentially it is not consumed."
Gold's much higher value prompts great efforts to recycle it. In fact, "all the gold mined in the world ever is still with us, but a huge amount of silver has been used in photography, mirrors and other industrial uses in the last 200 years," according to the GoldCore report. "The low price of silver makes recovery and recycling uneconomic."
So "industrial demand has been outstripping mining supply for most of the last 20 years, driving above-ground supply to historically low levels" and silver production has been flat in recent years, while demand has been increasing, the report said.
As a result, refined silver stocks are near an all-time low, with stocks dropping from around 2.2 billion ounces in 1990 to around 300 million ounces today, it said.
"At one time, silver was more expensive than gold, but that was in the days of Egypt's Pharaohs," said Phillips.
And while no one wants to say that will ever happen again, most analysts expect that silver prices will soon react to gold's recent gains.
Prices for silver could spike to $18.25 or even $20 between now and December, according to CPM Group.
GoldCore expects to see prices at well over the nominal high of $50 an ounce and, eventually, surpass the inflation-adjusted high of some $130 per ounce in the coming years.
"Ultimately, silver tends to exhibit its largest spurts in the latter stages of a major gold up legs," said Zeal's Wright. "Once speculators and investors start to get excited about this metal, it can really fly -- and fast."
I believe CDE has multiple Gold hedges , not only this one. I believe it comes down to how each company pays for and accounts for the hedges and how many ounces are actually delivered, i.e. the full CDE hedge for say 1000000 ounces of Gold could be accounted for at filing time were as ONLY the actual Gold the other party received is accounted for , Would have to ask an accountant with some knowledge on these royalty aka hedges , but I think it is combination of few things... either way , CDE EPS will continue to get crushed as Gold rises , sure it is non cash , But do you think Mr Mutual Fund cares? They want to see EPS and Low PE ratios , cash or non cash , that hedge is going to HURT us until we remove it , How many ounces did we hedge, how many have we delivered , How long will Gold rise... those are the questions we need to look at imo
It is an ugly Gold Hedge , who knows , hedger always losses in an up market and hedgee wins big time in up market....
Franco-Nevada Cleaning up on CDE Gold "Royalty"
Reports Record Quarterly Gold Revenue and Declares Dividend
TORONTO, Nov. 9 /CNW/ -- Franco-Nevada Corporation (TSX: FNV) today reported its financial results for the three and nine months ended September 30, 2009. All figures are in US dollars unless otherwise noted.
Palmarejo - Ramp up of production continues with Franco-Nevadarealizing Royalty Revenue of $7.5 million in the third quarter, whichexceeded the minimum royalty requirement. The Palmarejo royaltystream was acquired in January 2009 and the operation poured itsfirst dore in March, 2009. Coeur d'Alene Mines Corporation recentlyannounced a 40% increase in their gold reserves at Palmarejo, whichnow stand at more than one million ounces.
Royalty Revenue was $36.4 million in the third quarter of 2009, anincrease of 11% from $32.9 million in the second quarter of 2009 anda decrease of 9% from $39.9 million in the third quarter of 2008.- Q3 2009 vs. Q2 2009: The increase in Royalty Revenue wasattributable primarily to higher receipts from Palmarejo as itcontinues to ramp up production, higher oil and gas revenues dueto higher commodity prices and revenue from development ore atHollister.- Q3 2009 vs. Q3 2008: The decrease in Royalty Revenue wasattributable largely to lower oil and gas and PGM commodity pricesand lower production from the Company's Goldstrike NPI royaltyoffset by revenue from the newly acquired Gold Quarry andPalmarejo royalty interests.
The Company recorded $4.5 million in fair value gains associated withthe Palmarejo Gold Royalty Stream and another small royalty interestdue to an increase in forward gold prices. It is anticipated thatfluctuations in the fair value of the minimum royalty associated withthese royalty interests will become a recurring item on the Company'sstatement of operations. These gains are excluded from RoyaltyRevenue.
http://app.quotemedia.com/quotetools/newsStoryPopup.go?storyId=26288371&topic=CDE&symbology=null&cp=off&webmasterId=89753
Here is the SEC Filing:
SPNG received 0 shares , SPNG paid $0 dollars , it is ALL RM Enterprises a PRIVATELY held company.
SUBSCRIPTION AGREEMENT
IN WITNESS WHEREOF, the undersigned has caused this Agreement to be executed as of this ____ day of November, 2009.
Total Number of Shares Subscribed for: Five Million, Two Hundred Fifty Thousand Five Hundred Twenty-Five (5,250,525).
Total Purchase Price: $1,750,000
R.M. Enterprises International, Inc.
http://www.sec.gov/Archives/edgar/data/1201251/000114420409057095/v165164_ex10-2.htm
SPNG owns $0.00 of GetFugu > SPNG invested $0.00 into Getfugu - ALL of the PR was total fake out - total scam - TOTAL Lie.
R.M. Enterprises MADE the purchase / investment into GetFugu , SPNG flat out lied in PR and to the investing public about it to boost PPS and make them look to be more then they really are.
GETFUGU just paid r.m. 5.2 milion shares , not spng - spng got $0.00 - because spng paid $0.00 - SPNG is just a shell , a marketing shell controlled by a private firm R.M. Enterprises , it WILL implode and R.M. will just open a new shell , they have (5+) "Sponge" shells open and ready to move new busines into as each one implodes.... Those are the FACTS
SUBSCRIPTION AGREEMENT
IN WITNESS WHEREOF, the undersigned has caused this Agreement to be executed as of this ____ day of November, 2009.
Total Number of Shares Subscribed for: Five Million, Two Hundred Fifty Thousand Five Hundred Twenty-Five (5,250,525).
Total Purchase Price: $1,750,000
R.M. Enterprises International, Inc.
http://www.sec.gov/Archives/edgar/data/1201251/000114420409057095/v165164_ex10-2.htm
Anyone know how many ounces of Gold we have to supply to get rid of the hedge? aka Royalty? It is going to weigh VERY heavy on EPS if Gold continues to rise , could turn us to negative EPS and it is a non cash charge , really hurts when a non cash item can crush your EPS all the heck , how many ounces do we have left to supply ? How many have we already supplied? Anyone have any idea?
I remember a few folks on this board busting my chops when I complained about this hedge , my exact words were , EPS will suffer for long term until this is taken out , and once the "street" sees you lose money on gold hedges , as small or non cash as they are , they will make you pay dearly for it. IMO Gold Hedge was stupid and greedy - the should have sold shares or found high interest financing , now if Gold hits $2000 ounce , this non cash hit to earnings is really going to hurt us.....
I need to go find those orignal filings on the royalty , how many ounces was it for, and how many have we produced so far , can maybe try to figure out when we will get out of this mess.... ARG... I knew it , knew this hedge would hurt us long term.... $32million hit on one quarter... imagine if that was profit to the EPS , our stock would be flying today , huge EPS....
No , IMO the STUPID GREEDY Gold Hedge , aka as the "royalty" has reered its ugly head...... Why sell Gold at low levels last year when we ALL KNEW Gold prices would explode, if they took out an $80mil loan at 15% , we could have paid it back in 2-3 qtrs , look at this one quarter non cash loss on the hedge , UGLY IMO , When Gold hits $2000 this will double and triple , EPS will suffer big time imo
$32 million non-cash expense related to the Palmarejo gold production royalty, which was completed in January. U.S. GAAP requires that a portion of this royalty be treated as an embedded derivative subject to quarterly non-cash mark-to-market adjustments. The primary trigger for this adjustment was gold's impressive rise in price from the end of the second quarter to the end of the third.
watch out - last 2 stocks these guys profiled dumped hard days after receiving the newsletter in the mail. Be careful IMO
Interesting find : Taikone Technologies Pacific Inc.established in Sep. 27th 2004. Located at Suifengnian Industrial Park, Shatian Town, Dongguan City, near by Humen.
Taikone is a wholly owned foreign enterprise with stream-line business model that combines research, product development, and manufacturing in one location. Our company objective is to develop innovative products for both better living and improve environmental friendly. For the beginning of this venture, we have devoted major investments in imported equipments and technologies from the United States to enable us to produce highest quality products with highest efficiency… this is Taikone culture. Utilizing our patented processes, Taikone manufacturers products derived from “Hydrophilic Urethane Chemistry”. Which can be used in a wide variety area, such as medical products, sports product, cosmetic products, family products and cleansing products ect.
http://www.taikone.com/e_about.asp
most likely from molds universal refused , no doubt spng had to supply many samples of final product long before universal would green light the spongrboob sales , imo spng does not have the needed quality to put out a spongebob sponge , thus y we dont see one being sold in states , universal is not going to allow license on these ugly sponges to be sold as official licensed spongebob product , but u know those asians , they rip off reverse engineer , sell fakes by the millions , prob some of the molds that got rejected , were sold and now blackmarket - imo of course
IMO Pike got them from RME , SPNG been playing this illegal arms length gamne for long time imo , SPNG sells to RME @ 40% , then RME sells to Pike @ 60% discount , RME folks rake in cash , SPNG says o no we r only being financed by RME and can buy them bacl and or they will retire them , yeah right , , and all along this should have been filed , they r playing games, got caught, now u see the filings start to be filed , and of course the instant A/S raise to 3BILLION to cover it all , total scammy play IMO
They warned the public , now on grey/pinks , will never uplist ever , it is clearly noted as having open active SEC investigation, open active class action lawsuits , no filings, it is clearly now a matter of time and it is clearly trade at own risk , plus if they play games now they will go directly to jail , these filings , the forms 3,4,13 r a direct result of sec looking over operations , the raise of the a/s to 3 billion was result of same , the halt was made so everyone will know this is not some maybe investigation , this is real deal with evidence and facts, it is time to get out or risk losing it all , sec has warned you , imo , and yes , I believe we will see another halt before it is all over... plus some arrests , and then class action lawyers will suck every penny out of the insiders perosonaly and every penny from any hidden coffers, wanna bet u start to see some of the banners in ball parks come down when the folks dont get there monthly payments , have u seen any spng commercials lately? were is spongebob? lol , spongebob , that is over and done never to happen... this thing is all over but the day trading , .0001 / no bid next stop imo
lol sec is forcing the TRUTH out of this SCAM IMO. We are going to see a few BILLION shares on these forms before it is all over IMO , What a total farce the share counts given by company have been.... they been hiding transactions like these Pike deals for over a year IMO - The IRS is also going to pounce on these directors unless they have been claiming these shares they hold thru RME ownership as flow thru income by control persons , and u know they have been playing games with that as well.... imo
great post - good accurate outline of the process - this has been being investigated BY SEC for a long time - they dont make public disclosure of investigation AND then suspend trading unless they are POSITIVE and have loads of evidence the violations occured.... those are the FACTS....
Silver May Advance to $20 as Dollar Drops, Bank of America Says
Share Business ExchangeTwitterFacebook| Email | Print | A A A By Kim Kyoungwha
http://www.bloomberg.com/apps/news?pid=20601012&sid=aiZxK2TRfPR8
Oct. 29 (Bloomberg) -- Silver may jump to $20 an ounce next year supported by a weaker dollar and increased industrial and investment demand, according to Bank of America Merrill Lynch, which dubbed the metal “the golden child.”
Silver, which traded today at $16.28 an ounce, has doubled from last year’s low as the U.S. currency dropped and central banks cut interest rates, Michael Widmer and other strategists wrote in a report received yesterday. “Looking forward, exchange rates are set to support silver,” the report said.
Investors have raised precious-metal holdings, including gold and silver, to guard against a gain in inflation and declines in the dollar. Silver held in ETF Securities Ltd.’s exchange-traded commodity products rose to a record 21.199 million ounces as of Oct. 22, according to the company.
“We believe that a spike towards $20 an ounce is possible in 2010,” the strategists said. Still, “after the recent sharp price rises, we are cautious on silver in the near term.”
Silver for immediate delivery rose 0.7 percent to $16.265 an ounce at 9:12 a.m. in Singapore, taking this year’s gain to 43 percent. The metal, which last traded at more than $20 in March 2008, has declined about 10 percent from a 15-month high on Oct. 14.
Emerging-market governments will probably continue to diversify their reserves out of the dollar, weakening the U.S. currency and boosting the euro, said the report, which was dated Oct. 23. The dollar may end 2009 at $1.50 to the euro, it said, citing the bank’s currency strategists. Today’s rate was $1.4704.
Some silver and gold investors “increase their exposure to these precious metals for similar fundamental reasons, such as a weakening dollar or an increase in liquidity,” the report said. “Given that silver is cheaper than gold, market participants can substitute into the less expensive alternative.”
Gold for immediate delivery, which rose to a record $1,070.80 an ounce on Oct. 14, traded today at $1,032, more than 60 times more expensive than silver. Spot gold has climbed 17 percent this year.
To contact the reporter on this story: Kyoungwha Kim in Singapore at Kkim19@bloomberg.net
Last Updated: October 28, 2009 21:51 EDT
Someone is selling/SHORTING ERHE AS OF LATE?.eom
we are talking over $100 million in cold hard cash , over matter of one year , simple stuff IMO..... NO WAY they were going to profit that much , well , lol , unless you actually believed the false PR they spoon fed the lemmings?
NO NSS WITH SPNG! They shorted it into the ground , totally legit , they took a BILLION shares in restricted stock certs and shorted it like mad , they KNEW it was about to implode , now the company dies , retail investors pay the price get killed , BUT - The "financers" DF , RME , "The group" , they make a fortune on the short. SPNG insiders shorted SPNG and shorted it LARGE IMO
Yes , the chineese manufacturer no doubt got left with inventory , and is selling it out or take the loss , they prob have materials and such to make a lot more sponges and now need to do something to try and sell them out. IMO
CA LAWYERS WILL FEAST ON SPNG CASCASS THE SHORTS LEFT BEHIND > AND BE CLEAR - IMO OF THE FACTS SPNG INSIDERS > DOUG FURTH (THE GROUP) , RME , ET AL - IMO THEY SHORTED SPNG USING "SHORT SWING TRADES" AND ARE ABOUT TO MAKE $100 MILLION CASH ON THE SHORT - THEY SHORTED WELL OVER $60 MILLION IN STOCK AT $.13 - WHO HAD ACCESS TO THAT MANY SHARES? WHO KNEW LED PIPE LOCK IT WOULD IMPLODE? WATCH - THEY ARE ABOUT TO TRY AND PULL ONE OF THE BIGGEST SCAMS ON THE OTC EVER - IMPO
The Complaint charges that SpongeTech, and certain of its directors and officers violated federal securities laws by issuing false and misleading financial information to investors and engaging in a stock manipulation scheme. In particular, the Complaint alleges that SpongeTech misrepresented its sales revenues, failed to disclose alleged short selling of the Company's stock by certain, and improperly forged opinion letters of counsel in order to permit the sale of the Company's stock. The Complaint further alleges that as the truth of the scheme was disclosed publicly the price of SpongeTech stock fell dramatically -- damaging investors. As a result of this alleged misconduct, the Company is the subject of a formal SEC investigation and the SEC has temporarily suspended trading in the Company's stock.
This news release was distributed by
The Brualdi Law Firm, P.C. Announces Class Action Lawsuit Against Spongetech Delivery Systems, Inc.
13 minutes ago - Globenewswire
As of 12:00 AM ET 10/5/09
The Brualdi Law Firm, P.C. announces that a lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of all purchasers of SpongeTech Delivery Systems, Inc. ("SpongeTech" or the "Company") (OTCBB:SPNGE) (OTCBB:SPNG) stock between April 15, 2008 and October 5, 2009, inclusive (the "Class Period") for violations of the federal securities laws.
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased SpongeTech common stock during the Class Period, and wish to move the court for appointment of lead plaintiff, you must do so by December 8, 2009. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You do not need to seek appointment as a lead plaintiff in order to share in any recovery.
To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Sue Lee at The Brualdi Law Firm, P.C. 29 Broadway, Suite 2400, New York, New York 10006, by telephone toll free at (877) 495-1187 or (212) 952-0602, by email to slee@brualdilawfirm.com or visit our website at http://www.brualdilawfirm.com.
The Complaint charges that SpongeTech, and certain of its directors and officers violated federal securities laws by issuing false and misleading financial information to investors and engaging in a stock manipulation scheme. In particular, the Complaint alleges that SpongeTech misrepresented its sales revenues, failed to disclose alleged short selling of the Company's stock by certain, and improperly forged opinion letters of counsel in order to permit the sale of the Company's stock. The Complaint further alleges that as the truth of the scheme was disclosed publicly the price of SpongeTech stock fell dramatically -- damaging investors. As a result of this alleged misconduct, the Company is the subject of a formal SEC investigation and the SEC has temporarily suspended trading in the Company's stock.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: The Brualdi Law Firm
CONTACT: The Brualdi Law Firm, P.C.
Sue Lee, Esq.
(212)-952-0602
(877)-495-1187
slee@brualdilawfirm.com
look at this chart of SHORTED SPNG shares.
Nearly $100 million Legit SHORTED shares in 2009 alone , these shorts just made couple HUNDRED million dollars on this short , wow.....
see chart:
http://www.buyins.com/images/spngstr8-26-09.jpg
LOL , NO DOUBT THE CHINEESE MANUFACTURER GOT STUCK WITH INVENTORY , AND OR , IS GOING TO KEEP SELLING THESE CHEAP THINGS DIRECTLY NOW , LOL SPNG IS OVER....
ABTG is going to be huge IMO
I am sure the finaneers have verbiage that states the A/S needs to be a certain amount OVER the fully dilluted share count , including warrants , not uncommon , dont read to much into the wording of that prospectus , a lot of it is boiler plate stuff , sure many things can happen, but ABTG is smart , IF and when they r/s , they will make sure it removes all of the converttibles first , the stock will be trading on a fuly dilluted basis when they reverse , and after it is done , they may need to finance again and sell shares, but dont read to much into the wording of the prospectus , a lot of boiler plate stuff.... imo
GO ABTG! but please lets keep it real...The share structure is hurt , the tech is awesome , the future is super bright , ABTG WILL be HUGE , but they have had to sell out the capital structure to get us to this point, they WILL get it fixed, it WILL ALL come together > long and strong ABTG , play the dips , buy the pullbacks , create a core position , sell some into spikes to hedge against loss , but hold a core , I believe long term ALL ABTG investors WILL make good money if they play the stock correctly.... IMO
But please be real the share structure needs some work:
At $1.00 per share it is almost $2billion market cap fully dilluted....
RISKS CONCERNING OUR CAPITAL STRUCTURE
VICIS CAPITAL MASTER FUND OWNS A MAJORITY OF AMBIENT’S ISSUED AND OUTSTANDING COMMON STOCK AND WILL THUS BE ABLE TO CONTROL THE OUTCOME OF ALL ISSUES SUBMITTED TO OUR STOCKHOLDERS.
Vicis holds, as of September 11, 2009, approximately 71.65% of our issued and outstanding common stock. In addition, if the entire outstanding principal amount of the notes held by Vicis were immediately converted by it into common stock of the Company, it could result in the issuance of an additional 666,666,667 shares of our common stock to Vicis. If Vicis exercises the remaining warrants and is issued the shares from the outstanding principal of the notes it holds, Vicis will then hold a total of 1,309,081,748 shares of our common stock or approximately 83.77% of the 1,562,684,188 shares of common stock that would be issued and outstanding following such exercises. As a result, Vicis is able to control the outcome of substantially all issues submitted to our stockholders, including the election of all of our directors. A principal of Vicis also is a member of our board of directors.
FUTURE SALES OF COMMON STOCK OR OTHER DILUTIVE EVENTS MAY ADVERSELY AFFECT PREVAILING MARKET PRICES FOR OUR COMMON STOCK.
As of September 11, 2009, we were authorized to issue up to 2,000,000,000 shares of common stock, of which 894,634,187 shares were outstanding as of such date. As of September 11, 2009, an additional 812,324,098 shares of common stock were reserved for issuance upon conversion of outstanding debt securities and the exercise of outstanding options and warrants to purchase common stock and the reservations of shares in the Plans. Many of the above options, warrants and convertible securities contain provisions that require the issuance of increased numbers of shares of common stock upon exercise or conversion in the event of stock splits, redemptions, mergers and other transactions. The occurrence of any such event or the exercise or conversion of any of these options, warrants or convertible securities would dilute the interest in our company represented by each share of common stock and may adversely affect the prevailing market price of our common stock.
Additionally, our board of directors has the authority, without further action or vote of our stockholders, to issue authorized shares of our common stock that are not reserved for issuance. In addition, in order to raise the amount of capital that we need at the current market price of our common stock, we may need to issue a significant number of shares of common stock or securities that are convertible into or exercisable for a significant number of shares of our common stock.
Any of these issuances will dilute the percentage ownership interests of our current stockholders, which will have the effect of reducing their influence on matters on which our stockholders vote, and might dilute the book value and market value of our common stock. Our stockholders may incur additional dilution upon the exercise of currently outstanding or subsequently granted options or warrants to purchase shares of our common stock.
http://ih.advfn.com/p.php?pid=nmona&cb=1255196751&article=39838760&symbol=NB%5EABTG
The class action lawyers will suck out EVERY scrap left in SPNG carcass AFTER the SEC and "investors" take there pound of flesh... I wouldnt worry about advertising monies , those days are over for SPNG... IMO of the FACTS
I am loaded up at avg of $.10 , I am not greedy , it could go higher , but Ill sell some at .40 , .50 , wait for the listing news and r/s and reload on the sell off , but , that could change , that is my plan seeing what I see and having what I have....
December 28, 2008 > SPNG Insiders CAN SHORT SPNG....
Carpedeim357 and others was hammering me over these posts
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=34437379
Now seeing what weknow today 10 months later, this post really opens my eyes.... From Same day > December 28, 2008
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=34439030
Take a read of this very recent lawsuit SEC lost in court, says you CAN short restricted shares, before they are free trading, before they are registered , SPNG has NOT yet registered millions of shares, those shares IMO are mostly short before they register them., It is very confusing and IMO a loophole of sorts , Shorting needs to be reeled in , it should be regulated, monitored and mostly done away with IMO...
Also in the filing That I noted I found this very interesting:
"....able to sell and deliver the shares in connection with those transactions or in settlement of securities loans"
Sounds like Non Recourse Stock loans? They (SPNG) can pledge shares well beyond the number of shares issued in the filing, if they make a sale of stock to a non recourse stock financeer, totally outside of the filing, that will give seller (SPNG) instant funds for shares they dont have yet , "on the come" type of transactions.... The financeers know they will get the shares down the line so they lend them monies for shares they really dont have yet and they can short them and wait for later registrations / distributions to cover the non recourse sales. Anyway , just something to think about.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=34439030
January 16, 2009 > SPNGS BOOKS ARE COOKED.
I got KILLED for these posts , totally beat up by HUNDREDS of feverish sponge drunk investors that could NOT see the facts right in front of there faces...
Posted by: printmail01 Date: Friday, January 16, 2009 9:03:34 PM
In reply to: None Post # of 230813
IMO SPNG Books are cooked. The Filing does NOT disclose the True cost of goods and the true SGAE costs. What are the TRUE ACTUAL costs , It is UNKNOWN!?, Why does'nt SPNG Disclose the amount "NOT CHARGED BACK TO THE COMPANY"?
IMPO the SPNG $2 mil profit would be cut to break even or a loss..... OR WORSE?! .... Who knows , it is unknown amount , WHY NOT DISCLOSE THIS AMOUNT... ! That really smells bad....
These non disclosures are one reason why SPNG cant file a registration with SEC and have it declared effective , (no wonder RME will give shares back they know they will never be registered?) these tpyes of games with the books are for pinksheet BS companies not a company on the up and up. IMO These issues are why SPNG is .02 per share , If the sales and profits were true , it should be way higher PPS , but when you dig in the filing you see they are lacking extremely important disclosures , and no reason for it other then hiding something , if it is not big amount , no big deal, WHY NOT DISCLOSE IT?!
Cost of Goods Sold
Cost of goods sold was $6,547,563 or approximately 36 percent of sales, for the six months ended November 30, 2008 as compared to $48,676 or approximately 14 percent of sales, for the six months ended November 30, 2007. While the cost of goods sold increased significantly as a result of our increase in sales. In addition, during the six months ended November 30, 2008, a portion of our cost of goods sold, including costs related to warehousing, packaging, and shipping of products, were borne by (and not charged back to the Company) a privately-held company controlled by our Chief Operating Officer.
THEN AGAIN UNDER SGAE>
Selling, general, and administrative expenses for the six months ended November 30, 2008 were $733,655, an increase from $95,108 for the six months ended November 30, 2007. During the 2007 fiscal year, a portion of our selling, general and administrative expenses, including costs related to product and package design as well as certain consultants, were borne by (and not charged back to the Company) a privately-held company controlled by the family of our Chief Operating Officer. During the current fiscal year, some of these costs are still being borne by (and not charged back to the Company) a privately-held company controlled by our Chief Operating Officer.
PAGE5
http://www.sec.gov/Archives/edgar/data/1201251/000114420409002030/v137081_10q.htm
i am not holding any spng? but i will maybe buy on the 16/17 if the l2 looks good and I have the open time at work to watch it like a hawk , going to take a keen eye and fast moves to make the monies , but it us going to trade wildly , that always creates opps for buys and sells imo