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huggarags, no way do I think the primary shorts are covering. If they are short 1b+ naked shorts you'll know when its happening, right now I think this is just bigger investors as carpe has suggested, getting into the market. The funny thing is, is that to hold back the buying I think the shorts are actually digging their grave deeper and selling more.
When the shorts start to cover you'll see the price of this stock doubleing daily, I think there will be very little at the offer on L2 and an extremely wide market when they start to puke, because I'm guessing the MM's are not going to be offering shares unless its for people getting out.
YOu'll know when it happens, they at that point won't care about price, the margin clerks just want to get the orders done. It'll be alot of fun, I suggest you have your offers working way up there, 5+
IMO
RICHWATERS: Yeah i've posted some good ones,
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=38627051
and someone who questions my method for saying spng could hit what I think is possible, and my rebuttle
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=38634784
CYRXo, Well didn't the VW squeeze take the stock from $50 to $1000. Given VW PPS was probably less manipulated by the shorts than spng, lets assume VW was closer to its fair value prior to the squeeze. On that assumption, and assuming spng is fair valued at $1 based on what I said in my previous post. And if VW went form 50 to 1000, 20times, why couldn’t SPNG go 20x its fair value of $1.
Furthermore, another piece of evidence which leads me to think SPNG could go to $20 is this sec document, which talks about another squeeze in a penny stock, Universal express. On Page 4 it says the stock at the height of its squeeze trades 400x revenue. Now if spng can do $5m a week in sales, easy, that would value spng at over $150 a share.
Now i'd love to hear why you don't think $20 is possible, how do you figure its not possible? Any sort of evidence to back up your opinion or just talking to talk?
Universal express
http://www.sec.gov/comments/s7-08-09/s70809-364a.pdf
Now invest, more $3.75 PPS.
5m a week in sales=250m annual rev
20% profit margin= 50m Net income
50m x 15 PE ratio= 750m Market Cap
750m/200m Shares outstanding= $3.75 Price per share.
This does not include the "squeeze multple" which I think could be 10-50x fair value. Well into the 20's we could see for spongetech at the height of the squeeze.
This is my opinion. Can't wait.
Now invest, more $3.75 PPS.
5m a week in sales=250m annual rev
20% profit margin= 50m Net income
50m x 15 PE ratio= 750m Market Cap
750m/200m Shares outstanding= $3.75 Price per share.
This does not include the "squeeze multple" which I think could be 10-50x fair value. Well into the 20's we could see for spongetech at the height of the squeeze.
This is my opinion. Can't wait.
MR B, I consider fair value around $1.
5m a week in sales= 250m annual rev
250m annual rev x .20 profit margin, =50m net income.
50m x 15 PE ratio gives 750m fair value market cap.
750m/722m shares
is right around a dollar.
Why sell at fair value when there are massive shorts who need to cover? I think $1 should be the floor on this thing, thus your really limiting the upside by covering there. If anything sell 25% of your position at a $1 if you must, then let the rest ride. We could trade anywhere between 10 and 50 times above fair value on the short squeeze. Its happened before.
Just keep in mind $1 is fair value using my numbers which seem very fair. Read about other short squeezes in history to come up with your own, what i call "squeeze multple". I say 10x min fair value, so $10 is good.
This is all in my opinion
Bldshy, Exactly! Thats someone elses game, this is an investment good for a couple dollars, why get caught up over 10% moves. I've got buddies who got out at a dime and were looking to get back in at 6 cents but now they've missed the boat. Its a shame. Thats why I advise the people who are new to trading to turn the screen off, you're stomach will be in knotts and the market will take your money. You know the saying the time to buy is when the blood is runing in the streets? Same idea, for newbies, the minute you panic and dump, good chance thats the low tick.
You've found a great stock, now stick with it, I feel really good about this thing trading $5+ within the next couple months.
I advise all newbees to turn off the computer and stop watching the trading action. These are pro's, and they are going to use every tactic to try to scare you out of your positon. They are going to gun for stops, and try to shake out as many longs as possible. They are toast and I think they know that, but it'll be better for them if there as few as possible investors holding spongetech.
This is hillarious, look how violently they are selling, there entire firm is counting on this break. Anyone looking to get long gotta buy this break.
ninjaturtle, my guess is shorts are so screwed they've resorted to throwing out bogus prints to trigger stops into themselves. That is, if your working a stop at .15, you'd be stoped out selling into them at that lower price. Thats why you gotta be crazy to work stops in this thing.
Penny, thanks. I wonder if the shorts start to puke above there? What I'd love to see is market close below their puke point, then Nasdaq news comes out after close. Then we would have new investors buying in while the shorts try to cover, it would be a race.
What is all time high in spng? My IB charts are really hard to make it out, is it .27? Can you imagine if we take out all time high, omg, shorts may panic
Carpe, people should become familar with this short squeeze in universal express. Traded 400x rev. That would put spng at over $150 price per share on rev of 5m a week. While I'm not looking for that, I could see +$10.
Middle of page 4,
http://www.sec.gov/comments/s7-08-09/s70809-364a.pdf
Troutworld, if your long spongetech, there is no excuse for not buying at least 1 sponge and sporting the business. I've had many purchases from several different retailers and I don't even own a car, I just give them away. Small price to pay to support such a incredible company
Imagine being short 1.5b shares of spng into a meeting their having with NASDAQ, talk about a nightmare situation. YA BABY come get me at $8 shorty
wadirum1, what would you consider a larger shareholder at this point? I'd love to get a phone call asking my price, I don't even know where i'd offer the package, maybe $100 and try to meet in the middle.
OldTymer, I googled it, then went to maps. Looks like alot of results in germany. Doug always talks about eurotrash, I'm sure the two are correlated. The eurotrash NSS probably don't have the funds to wire to the bashers atm's anymore, so they're doing the bashing themselves, from europe. Hillarious
Comstock, looks like by your type, that your outside the US, you don't happen to be associated with what doug refers to as EUROTRASH? Like those european banks involved in this naked shorting? Have fun with SPNG, just so you know, I'll let you out of my shares at $20!
Jandrsn21, I myself am starting to get pretty concerned that the short position is so huge they won't have the funds to cover, and will just go bust. The longer managment waits on putting the dagger in the shorts chest, the bigger the short position grows, and where is all the money going to come from to cover the losses? Maybe they'll just have to apply for TARP or TALF funds to cover the losses. Nothing would suprise me in regards to the incestous relationship between big banks and the goverment.
Awesome post, thanks!
As long as your not selling them I doubt spongetech would care if you were walking around town with their logo on your back.
Dreamgirl, yeah a fist around a sponge, squeezeing it. Then istead of water splashing out, have the words "nite" "ubss" ect HAHA
I always liked whats in the IBOX about the big squeeze, even including some of the MM's names on the shirt would be a hoot for anyone who knows what this stocks about.
Makes you wonder the day we take the short scum out of SPNG, if the other short stocks pop as they have to close shop.
Yeah retail players trying to scalp 10k shares are not impacting the market, its clear the MM's are the ones hitting each others bids, washing trades, just trying to throw out a lower print. We need to finish off these MM's.
very conservative, I thought it was hinted in metters speach yesterday they do aboput 20 profit margin. I think we all can agree this things worth a dollar, and when the shorts go to get out hopefully over 10.
As for the people looking for a pullback, why? Your looking to make 7x your money, whats your downside, 8 cents? This things worth over a dollar, when the shorts puke alot more. This is a manipulated stock, and that is why we are trading down here, stop thinking there is any sort of true price discovery here. Your doing nothing but guessing and hoping you get lucky and see a pullback, the sure bet is that its going much higher, do you really wanna miss the party?
I agree, I'm averaged in at 1.5 cents, was telling everyone I knew to get in on this and its shocking how people just lack the ability to look at what the company says, their PR's, and see that the companys worth over a dollar fair value based on 5m a week in sales and 20percent profit margin with 15pe. I watch that metter video yesterday and can't wait for the future, the sky really is the limit. Although I'm hoping to get out when the shorts puke and value the company 10-50x fair value.
Fair Value? 5m a week in sales, 20 percent profit margin, and a 15PE gives a fair value of $1.08 price per share. We are far from fair value
I just don't understand why people even use the word dilution on this board, the bashers were trying to scare longs with that word before this stock rallyed 2000% off its low, any bear talk about this stock has no weight.
I agree, notice they didn't want to push the stock higher on the day, trying to stay below the radar, but it looked like they accumulated quite a bit just below .14. Not lifting offers, but casually letting the MM's sell into them,
When does the public get to see the papers?
Wallmart is 3rd according to forbes in both Market cap and Sales, behind 2 oil companies, I'd assume its not one of them, so I'm sure its walmart.
http://www.forbes.com/2009/04/08/worlds-largest-companies-business-global-09-global_land.html
if we can break above .145, I think we'll see some .16's,
yeah, start by reading about this stock when volume was greater than available float. When the shorts did get squeezed the stock traded 400x rev. If SPNG traded 400x rev the stock price per share would be greater than $150. I'm looking for $20, come get it shorty!
Middle of page 4
http://www.sec.gov/comments/s7-08-09/s70809-364a.pdf
These MM's just pass the hot potato back and forth, I'm sure the shorts are just crossing orders through Able, nite, and GNLR trying to walk it down. I read about in another short selling sec doc, how this is what they do, and they got in trouble. Look how they take turns on the offer, then best offer rotates back and also becomes best bid. Disgusting.
It was somewhere in one of these links that talk about the collusion amoung the market makers. Its so clear it makes me sick.
http://www.billgroover.com/rico/rico.pdf
http://www.billgroover.com/rico/1ac.pdf
http://www.billgroover.com/rico/1ac2.pdf
Actually I can and am kinda shocked we arn't up more, whos floating the shorts margin on their naked shorts?
These MM's are going to blow out on this stock no doubt, no possible way they are going to be able to cover their shorts. I woudln't be suprised if they had to go infront of congress for allowing the short scum to build up such a massive naked short position.
volume just broke above 5m downward trend line, seen this before in this stock, now we start to rally to new highs, perhaps close at .20 for the day
GAP AND GO BABY!
buy and hold to $5, this is going to super spike when shorts go to cover. Youre going to beat yourself up trying to day trade a 1 way market