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Maone, I just noticed that the iBox says TSHO is in the 'Current Information' tier on the PinkSheets, yet on pinksheets.com the current status is 'Limited Information'. You might want to update the iBox info.
Do you know if the company plans to become up-to-date with its reporting in the near future ?
P.S. I'm long, I would just like to see TSHO in the 'Current Information' bucket
I'm in, hoping this will be one of your 2010 specials Thanks again for all the sharing !
Interesting news came out after the bell on GDHI: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=45565358
Hey FF, thanks for taking the time to post your thoughts tidbits from time to time: they're fun to read and educational for us newbies
Actually, if you read the latest quarterly report, p3 says the A/S as of Sept 20, 2009 is 500,000,000 but then in the appendices it seems to indicate that the A/S is 1,000,000,000 ... Not clear, I emailed IR today to request a clarification. If the A/S is indeed 1,000,000,000 they might just be setting things up to pump this for a while, which would still be good for those who get in now.
CSLI looks to be ready for a run and has been featured in a couple of sites today, including http://www.baystreet.ca/users/newswire/viewarticle.aspx?id=243119 ... Might be worth taking a look.
ZVTK news: http://www.globenewswire.com/newsroom/news.html?d=180806
Could be another good today for this one.
ZVTK is looking good this morning. The company has put all the pieces in place for a hard pump in the next few weeks:
* AS increased from 1B to 5B
* new web site unveiled a couple of weeks ago
* announced last Friday that they were starting to
take orders on the web site today, and that commercials
'will be airing soon'
* saying they want to up-list
* etc.
Of course if you read their latest 10Q you can see this is most likely another complete scam, but again we're here just to try to ride in front of the wave
Note: I have done no TA at all on this, I'm just in because it looks like the pumping stars are aligned on this one ...
TSHO news came just after close on Friday : http://www.marketwatch.com/story/tradeshow-marketing-company-unveils-ultimate-squeegeetm-as-drtv-product-2009-12-11
Sorry I did not realize there was an unspoken rule about not talking stocks on week-ends, I'll try to behave from now on
FT: I agree with you TSHO is probably a good candidate for a real long term play.
You guys might want to look into TSHO early Monday morning if you haven't seen the news yet.
Sorry can't PM. Would you mind emailing the BK bounce play info info to dbusiness11 at yahoo dot com ?
Thx.
Great story man, congrats on the results so far. Seems like I need to roll up my sleeves because I see it takes a bit of work too
FatFish: thank you for the welcome PM, sorry I can't PM back, but yes I feel like this board is going to be much educational than others I have looked at And people seem to be nice too, which makes it even more enjoyable ...
Thank you backtrax and thanks for letting me know about this board back when I was on the SpongeTech one trying to figure out what to do ... I've stayed away from IHub (and stocks ) for a while since then so I hadn't seen your PM from 9/30. I can't PM back, but I see what you are saying about the mistake of putting too much in one penny stock: back when I was emailing w/ the Deep Capture people to try to get some clarity on SPNG, I was all in on that one. I got lucky that I ended up being able to get out (mostly) unscathed ...
On 9/30 you wrote you still thought SPNG might pop big eventually : do you still think that ? I just kept 20K shares just in case But I'm a big SPNG skeptic at this point. I got into LFBG pre-split also, but it's been somewhat disappointing so far. I'm keeping it until after XMas though just in case they end up having a good holiday season.
Sure thing man I am a fairly novice trader and mostly reading what you guys are posting, trying to learn about TA and tagging along on the various calls. I only have a few grand to play with right now, but I'd love to turn those into some serious cash. Thank you for all the great info you are all posting to this board ...
> DBS yet I bet you will buy other penny stock that lose
> money no profits.
Trust me, I'm going to be much more careful in the future, this was an expensive lesson to learn (in terms of substantial paper profits which I failed to turn into real cash), I'm just glad I am walking away with a simple pride wound and not a painful financial loss. I've learned a thing or two about doing more DD and the risk of ignoring feelings that some things just don't feel completely right.
Again, I will be very happy for those who kept all their holdings to make a ton of green on SPNG.
You could be right, and as I wrote before, you will deserve every penny you make if SPNG ends up being a smashing success. I actually hope that I'm wrong. I just couldn't take the associated level of risk anymore... I kept a small amount of shares which represents money I am ready to lose.
Also I decided that if I am wrong, when things clear up after the 10K then I can always re-enter because if SPNG is legit, they probably have a bright future ahead of them.
Good Luck !
I want nothing more than believe what you wrote, I have just been seriously shaken by my exchanges w/ the Deep Capture folks and I'm trying to figure out what to do next (haven't sold anything yet ).
I am just growing a strong dislike for the lack of clarity on what is going on, what the share structure really is, what the real audited and verified revenue numbers are ...
Fair enough, let's assume for the sake of argument that the first 3 large customers were fake and used by SPNG to hide their shenanigans back when they did not yet know that SpongeTech could be a successful company.
But now they have Costco, PetSmart, CVS, Walgreens, Ace Hardware, AutoBarn, etc. selling their stuff, and those are not shady shell distributors !!! Why don't you discuss these at all to try to provide a real balanced analysis of what is going on ?
That's the scenario I was hoping some of the more seasoned investors here would help us explore yesterday: let's assume the SPNG management team did commit some sort of security fraud back in their 08 fiscal year and during part of the 09 fiscal year too, but they then realized that they could get a real business going and are now trying to clean up their act.
Then what's the most likely outcome of the SEC investigation ? A fine and then letting SpongeTech go back to actually growing a legit business ?
> It's not 100% scam...it's also a legitimate company. They
> have just made 10s of millions of dollars to stuff in
> their own pockets on the side using the share selling power
> of a legitimate business. 2008 sales with those mystery
> companies is partly scam...they will get hit on that, but
> you are right...I believe they fully thought they could
> take this company to a major status as well.
What is making this confusing is that Judd Bagley from the Deep Capture team seems to personally vouch for the integrity of Mr. Patch, as indicated in this excerpt of an email reply he sent me on Monday.
Written by Judd Bagley on September 28:
> I will tell you this, however: I know Dave Patch and he's
> a deeply honorable man. He might be wrong (i dont know
> either way) but I can promise you he's not working for
> the shorts. He's doing what he thinks is right.
So it seems like David Patch is a good guy, but why would he associate himself w/ Kaja Whitehouse if she is a trash journalist ?
Yes, as much as it bothers me, I do believe that Mr. Patch seems to be genuinely concerned that the SPNG management team has been guilty of security fraud.
Now, there is still a slim chance he could be wrong, and/or a possibility that after some shady dealings SpongeTech is actually really interested in building a business and trying to clean up their act. But as I said I'm speculating at this point.
I might end up selling some of my position to be on the safe side. Plus this looks like it might still provide opportunities for profit if day-traded.
> Do you now believe it was actually David Patch that sent
> that letter to the SEC DBS?
I'm not 4kids, but from what I understand 4kids felt like the person they were emailing with might have been someone posing as David Patch, so maybe that's why no report was ever provided.
Underdog, I did exchange a few emails w/ Judd Bagley from the Deep Capture team, and he was meeting w/ David Patch today, and unfortunately, much to my disappointment, he did tell me that David Patch confirmed to him that he had indeed authored the letters which were mentioned in a post a while ago:
http://investigatethesec.com/drupal-5.5/?q=node/906
http://investigatethesec.com/drupal-5.5/files/September%209.pdf
This is something that will make reconsider my position because I do feel like the Deep Capture folks are trustworthy (although I could be wrong about that too, it's become hard to tell friend from foe ).
In my mind the best possible explanation at this stage is that SPNG management did misbehave at some point and might be trying to come up clean and go about running a legit business, but that's just a lot of speculation on my part ...
What doesn't make sense is why manufacture, distribute and sell products (again I bought some here in RI at CVS just a week ago), advertise on TV, buy Dicon and all that if you are just trying to run a stock scam ?
I'm interested in non-hysterical (i.e. if all you have to say is "IT'S GOING TO ZERO SELL SELL SELL !!!!" then don't bother ...) opinions about what the worst possible outcome of the SEC investigation might be ? Assuming some mild security fraud has been going on but now the business is kind of on a roll (may be SPNG management got surprised by their own success at selling sponges ), could they just get away with a slap on the wrist, some kind of fine and then be sent back to running a legit business ?
I appreciate those of you you might have been trying to provide genuine warnings, but they kind of get drowned in the bashing background noise.
> 4kids, will you please post the reply you received
> from David Patch that you said you would " post back to
> this venue ~ when i get a response from david patch"
> It seems he replied to your questions, so I am curious
> why you are not posting his answer here for everyone to
> read? He did reply, correct?
>http://investorshub.advfn.com/boards/read_msg.aspx?message_id=41993280
> --------------------------
> well i'll shoot him an email/edit
> and ask for verification underdog
> i've seen too many *oddities*
> to take anything at face value
> will post back to this venue ~ when i get a response
> from david patch
> edit >>>> i'm having a tough time *reconciling*
> the david patch i'm aware re: the SEC and NSS
> with one who *relies* on the ny post for *insight*
> odd stuff indeed ~
Nobody on this board is expecting that you would
> But I won't be looking to hold "long."
Not sure why my last message was deleted but I wanted to post this again: I have started discussions with Judd Bagley from the Deep Capture team (http://www.deepcapture.com/) and one of the things Judd should be able to help us with is verifying if the letters which have been supposedly sent to the SEC to denounce SPNG as a pump&dump scam have indeed been written by the real David Patch of SEC fame (http://www.sec.gov/comments/s7-20-08/s72008-180.pdf).
Mr. Bagley should be meeting with the real Mr. Patch today, so hopefully I can share some info with this board later today or early tomorrow.
I, for one, can't wait to get a bit more clarity on the origin of these letters (the ones advertised here : http://investorshub.advfn.com/boards/read_msg.aspx?message_id=41920063) ...
Because, as you know fully well, this is a real company with real products and bound to make a lot of money in the next few years. If you think you were going to short this puppy all the way to zero, you're in for a rude awakening.
By the way, I'm still emailing with Judd Bagley from the Deep Capture team, and I am hopeful that they will get curious enough to start their own investigation of the SPNG/E recent stock price story, which could lead to interesting developments. I'll post more about this in the near future.
OK, may be, at this stage we can't put it past them that some of the members of the management team might have been guilty of some mild shenanigans ... we'll see exactly what comes out of the 'investigation'.
However, there is still a promising business which stands good chances to flourish and prosper.
My gut feeling is that the worse case scenario we are looking at is SpongeTech ending up having to pay a small fine and then be sent back working on their business after they cleanup their financial acts.
Good Luck To All Longs
> It is a legitimate business with a CFO committing
> securities fraud. Unfortunately, the shareholders
> and business will suffer because of his actions.
Yeah sure, but the rewards are proportional to the risks. If we longs are right to believe SpongeTech is a legitimate business, we'll get a nice stack of cookies in the end
Good Luck to All Longs ...
> Interesting open indeed, but stick with the facts.
> Anyone holding this is risking losing everything at ANY time.
Thank you for the kind words no_BS Been having a crazy WE and I have a full plate today but I'm trying to keep a conversation going w/ Judd Bagley from Deep Capture. I'll let you know what comes out.
I think today is going to be painful again, but I won't sell, like you I just don't think SpongeTech is a scam, there just has been too much work put into actually building a brand and a company for it to be just a bunch of crooks trying to make a quick buck (not to mention that if it is a scam, the whole management team knows they would be looking at jail time).
I'm unsure about whether the SEC investigation actually does target the company, but I do think that the worse case scenario we are looking at would be for the SEC to fine SpongeTech but let them clean up the mess and get back to running a business.
We'll see, if I'm wrong I'll certainly pay dearly for that
Good Luck To All Longs !
Yep, again this is the exact m.o. described by Deep Capture, from negative news articles all the way to SEC investigations triggered by the naked shorts. So we're at war and we have to hope that the SPNG management team will roll up their sleeves and fight back ...
Good Luck To All Longs !
OK, so I did put together a quick summary of everything I understand at this point and mailed it to the Deep Capture team (Bagley, Byrne & Mitchell).
I am posting the email I sent below, It's a bit long sorry, but if you have additional data / facts to contribute, please let me know and I'll send that too.
I will let you know when I hear back from them. Those of you who care should write to them to (their email addresses are available on that page: http://www.deepcapture.com/about-deep-capture/). Also write to SpongeTech asking them if they are going to take legal action against the NY Post, engage the SEC etc. We need to get our voices heard
Good Luck To All Longs !
------- Email to Deep Capture Team sent Sept 25, 2009
Hi again Judd,
I have been trying to put together a high level picture of what I understand at this point. I'm not a stock professional by any means, just an individual retail investor with limited experience (I don't day trade, I try to pick long term investments), so some of my comments might be naive, but please let me know if you think this is something that Deep Capture might be interested in investigating further.
If you are interested in digging further into this, I would like to help by asking investment board members and other long term SPNG investors to gather all additional information they may have: a little crowdsourcing effort might yield more facts and data.
Thank you for your time,
**** 1 - Company overview
There is a pretty good company overview which has been put together by the members of the spongetech investment board on InvertorsHub :
http://investorshub.advfn.com/boards/board.aspx?board_id=7664
On that page (the IBox section) you can find a lot of info about the products (sold by many major US retailers now like CVS, Walgreens, Costco, Krogers, etc.), the marketing efforts (SPNG advertises on TV, and has signage in baseball fields, the 2009 US Open), etc. Verifiable data (I can see products on the shelves of CVS here in RI where I live) which seem to prove the company is actually legitimate.
**** 2 - Shorting data
Short data for SPNG : http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsId=20090831005463&newsLang=en
SPNG has been on the RegSho list continuously since 7/24/2009, but has been there before (see http://investorshub.advfn.com/boards/read_msg.aspx?message_id=39976677&txt2find=RegSho)
On a day like today with a damaging article from the NYP, there has been over 200 million shares traded, while the available float is believed to be in the 200 million range (as of their last filing SPNG has 722 million issued and outstanding shares but about 480 million of them are held by RM Enterprises
International, Inc: see http://investorshub.advfn.com/boards/read_msg.aspx?message_id=41598363&txt2find=RM|Enterprise section 'Fundamentals, item #7).
**** 3 - Interesting stock price events
Back in Q2 2009, the company sotck price started to pick up some steam, as SPNG was announcing record sales month after month. Then on June 12, 2009, the stock price went crashing in a few minutes from $0.28 to $0.08.
http://bigcharts.marketwatch.com/advchart/frames/frames.asp?symb=SPNGE&time=6&freq=1
On that day Timothy Sykes came up with this blog post:
http://timothysykes.com/blog/2009/06/12/spongetech-delivery-systems-inc.-spng.ob-told-you-so/
After that the stock price kept going down for a while, then it recovered slowly all the way to the low .20s by the end of august, and from then on it's been hammered down pretty much continuously, while the daily FTDs numbers kept rising. What happened is that shorters took advantage of the fact that SPNG 2009 10K filing got delayed, and that company announced and then canceled a reverse split (all of this linked to the SEC request for a 2008 financials re-audit). They started flooding all boards (Google, Yahoo, InvestorsHub) with hysterical and/or ominous comments about how the company was a fraud, the stock
price was going to zero, etc. I mean there always had been some level of bashing going on since I started investing in that stock (April 2009), but it just went through the roof in the past couple of weeks. It's just a non stop barrage of garbage and fear-inducing messages ...
Silly question : Could it be possible that someone at the SEC is involved in the manipulation since they timed the letter ordering the re-audit of 2008 just before SPNG was going to file 2009 10K ?
**** 4 - NY Post articles:
There has been 3 NY Post articles so far, all authored by Kaja Whitehouse
* Sept 17, 2009 : http://www.nypost.com/p/news/business/not_spongeworthy_ZZZ1QlWllnBaSYuVjqYysK
Alleges SEC launches inquiry, misrepresenting the fact that SEC simply asked SPNG to get their 2008 10K re-audited because previous auditor lost their license, and implying that new auditors selected by SPNG are also shady. Just all around insinuations that something is fishy. Quoting Timothy Sikes
accusing SPNG to be a blatant pump and dump.
The last line of the article is :
"SEC spokesman Kevin Callahan declined to comment, saying he cannot confirm or deny "the existence or non-existence" of any investigation."
* Sept 22, 2009: http://www.nypost.com/p/news/business/spongetech_is_all_wet_hBMpyldSkFZez0wuxFdupO
Story about a former SPNG attorney saying the company forged dozens of legal documents. Riding on the tail of the announcement of the SPGN ticker switching to SPNGE as the 2009 10K is late (reasonable people think the 2009 10K was ready in time bu that the SEC letter from Sept 11 asking SPNG to re-audit the 2008 numbers has caused the company to delay the 2009 filing). Mentions a letter the attorney is said to have sent to the SEC but not copy of it.
Continued insinuations, mentioning SPNG customers could be fake/shady too ?
* Sept 25, 2009: http://www.nypost.com/p/news/business/spongetech_client_records_spring_dw5hyBpvNxFyvS96Xmi5bN
Frontal attack insinuating the main clients of SPNG are scams too. Comments on investments boards say the article gives incorrect addresses (I haven't verified this). Also posters on investment boards say that fake web sites have popped-up recently:
http://dubaiexportimportco.com/index.htm
http://fescocorp.com/index.htm
http://satradingcompany.com/
A Sample IHub Post in reaction to this article:
Agreed that this isn't the NYTimes. But faking a contact with SPNGE's IR and putting a bunch of bogus addresses in their article seems pretty wild. The drama here has really stepped up to a whole new level.
But the buying has been intense, so maybe this will all work out fine.
I've been trying to get IR to confirm/deny that they gave that information to the Post. No luck yet.
**** 5 - People with websites posting frequent negative articles on SpongeTech:
* Timothy Sykes
June 12 SPNG price crash:
http://timothysykes.com/blog/2009/06/12/spongetech-delivery-systems-inc.-spng.ob-told-you-so/
Companion post to NY Post article:
http://timothysykes.com/blog/2009/09/25/the-ny-posts-latest-evidence-that-spongetech-delivery-systems-inc.-spnge-is-a-fraud/
* Moe Speek
Moe Speek : http://moespeeks.blogspot.com/
**** 6 - Misc Material
10Q for period ending Feb 28, 2009
http://www.sec.gov/Archives/edgar/data/1201251/000114420409021409/v146656_10q.htm
All SPNG Press releases in the recent months:
http://www.businesswire.com/portal/site/home/news/?ndmHsc=infSearch&vnsId=-
2147483648&ndmConfigId=searchNDMConfig&searchHereRadio=false&keywordType=1&keyword=spongetech&go=Go
Thank you for offering to help. Give me a little bit of time to think about how to best organize the efforts of people who can and want to contribute.
We'll probably need a few days to collect the data and then consolidate everything (I'm sure a lot of potential contributors have a day job too). I'm thinking we should enroll people from the yahoo and google boards also, as well as contact the team behind the spongemob web site.
If we can get enough contributors and organize our effort, there is no reason we can't do at least as well as the concerted bashers
Thank you ! Anybody who wants to contribute, please make a public post with your information and I'll consolidate all we get in one email which I will share with the board.
If everybody contributes a small piece of info, and we manage to get the Deep Capture team's interest, we could actually help start a full scale investigation of the NSS activity that we believe has been targeting SPNG in the past few months !
> I'll do the 3 I proposed... I don't have t-trades from
> past dates (does anyone?) if not - I can use the posts
> here on ihub.
Sure that's a great idea, I just can't do all this on my own, so who is interested in helping putting together the material we need to send to Judd Bagley at Deep Capture ?
> Volume analysis, RegSHO, and T-Trades should be included.
Hey Ladies & Gents, looks like nobody has replied to offer to help compile a list of specific lies written in the NYP articles ...
We're all happy to see a bounce back, but we do have a real opportunity to get the Deep Capture team interested in our story and those guys are heavy hitters. So let's roll up our sleeves and put together a nice summary of what we have seen so far:
* 3 NYP articles full of lies
* Forged web sites
* List of aliases who have posted consistently misleading
information on this board.
I'm going to take the latest NYP article and list all the issues I can find with that one.
Anybody else interested in extended a helping hand ?
Yep I saw that, I got a reply too, I think we could start with pointing the DC team to the last SPNG PR where the company clearly states that NY Post article is intentionally misleading.
Can anyone else help here by providing a list of bullet points highlighting the various lies in the 3 NY Post articles ?
> DBSS!!! please read
>
> DBS - already got a reply from DeepCapture:
>
> Thanks for the note, Marc.
>
> What were some of the facts that the Post got wrong
> in its stories?
> - Show quoted text -
> --
> Judd Bagley
> 801.618.8455
Yep, my next letter is to the SEC, but I will prepare it more carefully, and sorry to disappoint you but it will be to ask for an investigation of the stock price manipulation, and not to insinuate like you are doing that SpongeTech is not a legitimate business.
I'll share the SEC letter with the board also when it is ready.
Longs Will Prevail
> It would make to much sense to write a similarly scathing
> letter to SPNGE asking them what kind of clowns are running
> this so called company.
Here is a copy of the email I just sent to various contact addresses I could find on the SpongeTech and SpongeTechInc web sites. Feel free to re-use it ...
**** Title:
SPNG Management Plan To Defend Against Stock Price Manipulation ?
**** Email Text:
Dear SpongeTech Team,
I am writing to you as a concerned investor of SpongeTech to ask if the company's management has an actual plan to address the devastating attacks against its stock, attacks which have been intensifying significantly in the last week or so.
I understand that if such a plan exists, the management team cannot share details with the company's investors, so I am just asking : is there a plan in the making ?
Even if you cannot share details, can you also answer the following questions:
1 - Will SpongeTech management engage the SEC and other market regulation authorities ?
2 - Will SpongeTech sue the NY Post for libel ?
3 - Will SpongeTech get in touch with the Deep Capture (http://www.deepcapture.com/) team to get them to cover the SPGN stock manipulation story ?
I won't sell my stock because I believe that SpongeTech is a legitimate operation, and I do see your products on the shelves of CVS and Walgreens where I live, but having SpongeTech's management communicate about the on-going stock manipulation and indicating that they are about to take some kind of action would be a relief for the company's shareholders who do feel somewhat neglected at the moment.
Cordially,
<your name and address>
Yes the Deep Capture team (http://www.deepcapture.com/) might be able to help if we can grab their attention. Please do visit their site and write to them today. See my earlier posts today for more info and a sample letter.
Also let's all write to SpongeTech to suggest to them to get in touch w/ the Deep Capture people. I am preparing another letter which I will share as a template.
> could someone tap the SEC on the shoulder and wake them up ?