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I see quite a few comments on whether having Class A and Class B stocks is above board. Spng has both and there are mixed feelings on this board regarding them. The Bancrofts, prior majority owners of WSJ, and the Ochs/Sulzberger family of the NY Times both had "their" companys' structured with an A & B stock - B stock having essentially all the voting rights. My understanding was that it was done that way to keep decisions in the family and prevent hostile take overs....
I am not comparing SPNG to these guys but is this really that unusual?
My is guess that is why he called it a theory. His hypothesis makes assumptions (as all do) until the facts are out. Based on his assumptions that makes it plausible. Doesn't mean it will prove to be true, thus the "theory" part.
Creating a similar theory with higher O/S shares is equally plausible at this point.
LMAO - kind of like the IRS....
Thanks....so I can assume there is not mind boggling stategy here.
Another question I have. What are the pros and cons to a gagged T/A. I am not interested in anyones opinion of gagged T/As already read a gazillion of those here. Just want to understand the whys from a "dis-interested pary" view.
Tex, If we make the huge assumption that the 10k is complete as some suggest here - what would be preventing it from being filed? Auditor sign-off? SEC? Who can prevent a completed 10k from being filed - again assumping it is complete. If all the criteria is met is there any reason on earth it would not be filed?
A million shares a minute!
You might be correct. Kind of reads that way. Definitely not an expert in that stuff.
Thanks again. Sheesh sec made that simple - not.
Thank you! I can breathe. I could not for the life of me remember where I saw it, and was beginning to think I dreamed it up. Looked everywhere but the obvious! Not kidding that was beginning to drive me nuts, even if it is of little importance right now. Must be ocd
Thank you! I can breathe. I could not for the life of me know where I saw it, and was beginning to think I dreamed it up. Looked everywhere but the obvious! Not kidding that was beginning to drive me nuts, even if it is of little importance right now. Must be ocd
Thanks. As you know I was reading something the other day that said if a company was on the pinks but had some minimum number of shareholders and revenue they are still required to file. I agree let's see if one knows the answer. Not sure how much it matters but it just puzzles me.
This may have already been posted but this company has a lot of companies they are suing for similar things.
http://www.rosenlegal.com/ongoing.php
Not required to file?
Agreed...those types of statistics are phony. You always need to peel back the onion. SPNGE good or bad drove retail sales in the past year - not online sales at their site. Online marketing can exceed hit numbers of companies that are actually much larger. NYT is 108 (a 3 billion dollar company but a newspaper). JCP a company much larger than the NYT is 912. How many hit are relevant is dependent on the business type.
Thus my question why are they even where they are? Remember these numbers on the site you posted are for the last 90 days. I suspect many hits to Sponge were info seekers and not prospective buyers.
That puts it in the top 7% percent of websites hit for the past 90 days. Remember there are over 182,000,000 websites - so being 13.5 million isn't as bad as it sounds. The bigger question is WHY are they attracting hits????????
True. Normally they take 33 - 40 percent plus expenses....expenses are insane with most firms. What evers left gets divided among those represented/plaintiffs.
Class action suits can be a real money cow for law firms.
Those numbers are even more reasonable if we consider that the sales are strictly sales to the stores. In other words CVS chain buys 5000 sponges, many could be sitting unsold. Expanding retail outlets is a very fast way of increasing sales...the long run of whether there is re-orders or not is the real acid test of a products viability. But all things considered SPNGE has plenty of room to expand retail sales as it is really only been the past year that the numbers reported are susbstantial. If you think of it like book sales it is easier. A new book comes out with 500,000 advance sales...the bulk of those sales are Amazon, B&N, and a gazillion book stores across the country. Make sense?
I am going to get a cup of coffee....this board this morning..??? Getting wacky! Was last night a full moon?
Professing my ignorance here so please shed some light. I was just looking at T/A Olde Monmouth and they seem to have a lot of companies on the grey sheets:
http://www.pinksheets.com/pink/otcguide/issuers_service_providers.jsp?index=5&id=90
Is that normal? or do they just have a lot of clients who get themselves in a mess....I was totally shocked. I expected to see or at I thought that going grey was very unusual...
duh never mind I get what you were saying
click on the Halt Code gives you the code meanings
Code Description
H10 Trading Halt - SEC Trading Suspension .
The Securities and Exchange Commission has suspended trading in the security until further notice
If SPNGE received 70,000,000 million in revenue (gross) and were selling sponges at 3 dollars each wholesale that's 23,333,333 sponges. If there were 40,000 outlets, thats 583 per outlet. If this is earnings for 3 months, that would be a little over 6 sponges sold per day per outlet. If you throw in internet sales, infomercial sales, and the possibility that there are more than 40,000 outlets those numbers come down quickly and are not so wild. I am not saying they did this but it does seem possible. I used 3 dollars per sponge to be conservative....just thinking out loud here..
lol...sorry. After I sent it I continued reading and saw that you probably received it a half dozen times...felt a little stupid.
No. I do hope that there is a positive 10k and that this comes out okay. I do think there are some bashers, but I think many here have done some serious digging and have expressed their true position on the stock. I am still holding (well not exactly a choice at this point) but admit I truly question that wisdom. It seems that historically companies that have gone through these events have turned out sour. Could this be the exception? I hope so, but it is frustrating to watch the bleeding each day and the continual negative news which begats negative perspective. Again I would love to see this come out strong...but I can't say I am not concerned. And I am not taking the con perspective with a grain of salt either. Too many companies that have been suspended and gone grey did not fair all that well. Time will tell.
R/S fiasco..........
That is the part I have trouble grasping. Just for conversation let's suppose the following:
Sec suspended trading to protect the investor pending audited reporting for accuracy.
10k comes out and it is correct, numbers are validated and company abc is vindicated.
abc still goes to grey sheets.
abc stock declines...
How is this protecting the investor?
It is as if the company was found innocent of any wrong doing and yet the company which is made up of stock holders, still pays the price as if they were guilty barring some miracle.
That is on the money. "Speculating" what might be going on is not good either. This stuff gets so convoluted (sec, finra,exceptions)....and waiting = frustration. The hub here with all it crazyiness has been a nice distraction for me. Plus learning from some of the posters here.
You are right, we are all responsible for our actions. But deceit is deceit at any level. As a moderator he is expected to despense information that is true, honest. Deliberately providing false information is morally bankrupt. Many do seek to learn from forums and even begin DD efforts from the info and links found here. False information sends people on wild goose chases, particulary those just beginning their efforts to learn the penny market. People are quick to criticize those penny companies that are believed to be corrupt; they have every right to be equally critical of those who PROFESS to be corrupt. We can all dismiss this as part of the learning process for those entering the penny world - but that is a sad justification for deliberately passing incorrect information: lying.
Haven't sided with anyone, and I would welcome a strong 10k. Have a modest amount of shares. My point, apparently poorly made, is that there is information that is worthy of reviewing from both people who are pro and con on the stock. It is, again in my opinion, is important to weigh the information that is factual regardless of who delivers it.
I've followed this board for a while. Asked some pretty novice questions, because my trading experience prior to this was sticking with options. I was foolishly long on this one and now I'm out a few bucks. I have listened to people call each other bashers and pumpers and some may fit the bill. But I have also realized that some here provide good information. Hasher's comments always, unfortunately for me, have been pretty darn accurate. He and a few others usually give informative stuff that can be validated. To me, that ain't bashing, that's good solid information (even if I didn't always follow it - wish I had in this case). It isn't bashing when it's informative and accurate and worthy of consideration in one's analysis. Bashing and pumping is hype based on nonsense in my opinion. The one thing I've learned here is be a trader in the Pennies, and take advantage of all the research done by others - not blindly but check it. Having these post allowed me to follow many pertinent links to get the information quickly saving a lot of time... My failure was being foolish and wishing.... And I am a damn analyst who is suppose to know the basic rule is ignore the emotion and separate it from the facts! Let the data drive the decision not the emotion. I slipped. But I won't make that mistake twice.
Amazing. A month ago the talk was going NASDAQ, today Going Grey....lot's of lessons learned here.
Thanks Tex. Actually I have read through the posts and thought it was pretty clear. I pasted this in because I couldn't figure out what everyone was not figuring out...does that make sense. I thought it was pretty clear, but all the questions on here made me think maybe I was missing something... My understanding is that once a Pink/OTBB stock is halted, it is automatically returned to grey sheets pending a brokerage accepting the reported finances. I did read that just because a company is on the grey does not necessarily preclude them from the filing requirement if they have over x amount of shareholders and x amount of revenue. I think the shareholder number was 500 (maybe 350 getting old here), and the revenue was greater than 100 million but don't hold me to those numbers.
Interpretation please?
SEC Suspension
The SEC can suspend a stock from trading for up to ten trading days when it serves the public interest and will protect investors. The SEC will act when it believes public information about a company is not current, accurate, or adequate. For stocks that trade in the OTC or the over-the-counter market, quotation does not automatically resume when a suspension ends. (The OTC market includes the OTC Bulletin Board® and the Pink Sheets.) After a suspension, SEC regulations require a broker-dealer to review information about a company before publishing a proprietary quote. If a broker-dealer does not have confidence that a company's financial statements are current and accurate, especially in light of the questions raised by the SEC, then a broker-dealer may not publish a proprietary quote for the company's stock. However broker - dealers may publish quotes representing an unsolicited customer order.
I don't believe you intentionally lied. I do think you are struggling with the fact that you, like all of us, have been wrong on many occassions and this is a sad attempt to massage your ego. Never have I heard of a board moderator whose MO is to lie to seek trust??? That's just silly, maybe stupid. As a moderator do you believe you have supreme knowledge over others? Most people here, at least I would like to think, regardless of whether they are pro or con SPNGE have done some DD, listened to others, and presented their take on the stock. People simply have different perspectives: you know like democrats and republicans. Discussion on differences can be legitimate and both perspectives can have some right and some wrong to it. As others have said, this is both sad and pathetic. Never Mr. Bubbles take someone's honesty, trust, and decentcy so lightly. And most of all never humiliate anyone regardless of how good it might make you feel. Trust people until they prove you wrong - but recognize the difference between honest exchange of differences before you determine trust. Lastly the poor behavior of others does not justify a similar behavior; and, that is difficult to do....
There's the real problem even if SPNGE came up smelling good - PERCEPTION! The perception is highly tainted. Reading those two paragraphs makes me think why would anyone entertain accepting this back in the market. Everyone now has questions if the rules have been complied with..........
"Further, brokers and dealers should be alert to the fact that, pursuant to Rule 15c2-11 under the Exchange Act, at the termination of the trading suspension, no quotation may be entered unless and until they have strictly complied with all of the provisions of the rule. If any broker or dealer has any questions as to whether or not he has complied with the rule, he should not enter any quotation but immediately contact the staff in the Division of Trading and Markets, Office of Interpretation and Guidance, at (202) 5515777.
If any broker or dealer is uncertain as to what is required by Rule 15c2-11, it should refrain from entering quotations relating to SpongeTech’s securities until such time as it has familiarized itself with the rule and is certain that all of its provisions have been met. If any broker or dealer enters any quotation which is in violation of the rule, the Commission will consider the need for prompt enforcement action.