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A5,
We'll start with the fact that there are a great many fully operating BB outfits currently meeting all NCM initial listing requirements. Uplisting, for any of same, being not a problem. If desired. SPNG, on the other hand, as a BB outfit still in the throes of achieving fully operating status and yet largely meeting the referenced requirements but for pps circumstance, is remarkable. Such an outfit uplisting to a senior level being rare. And, below, I've reproduced the Q&A shared with the board. The questions posed. The answers provided by Bill Young at company IR as of Friday, June 19. And...
1_
"Outstanding shares: I assume you can't give details but just nod your head if there is some type of buyback in process."
"Outstanding shares: we have a on going repurchase program."
2_
"Reverse Split: Can you get share price where you need it without doing this?"
"Reverse Split: would be the last thing we would do lose 2 year branding the symbol"
3_
"Merger/Acquisition: Does spng plan to stay an individual or is a partnership on the horizon."
"Merger/Acquisition: always on the table"
4_
"I have everything I own in spng giving me 500k shares. In your opinion... what are year, 2, and 5 year targets for PPS (assuming no R/S). Basically want to know if I can retire in 3 years or will I be starting over."
"I think could retire in 3 years"
5_
"Nasdaq: Time line or possible options for achieving?"
"NASDAQ: update soon?"
With the buyback situation being known to all involved. Ongoing, via the open market...
'On September 5, 2008, the Company announced a share repurchase program. For the period ended February 28, 2009, the Company repurchased 55,824,336 shares of common stock at an average price per share of $0.0308. The Company will repurchase up to 100 million shares of stock under the plan. The repurchase plan will expire after 12 months.'
Plus ongoing buybacks involving the holdings of RM Enterprises. With the reverse split situation being interesting. As, very seemingly, management came away from the Thursday NASDAQ meeting with the understanding that, if a reverse split was applied in achieving uplisting, the company's SPNG symbol would have to be changed. And the NASDAQ does reserve…
'the right, in its sole and final discretion, to assign, rescind, or reassign any trading symbol at any time'
'the right to alter, modify, or deviate from its normal symbol reservation procedures at any time for any reason'
We can't say exactly what's gone on. But, certainly, a change of symbol at this point in the company's operating history would be massively counterproductive. And, so, a consolidation of the Outstanding stock? The path of least resistance to the uplisting? And not rocket science. With the M&A situation being as talked about. The likeliest path to gaining the needed listing, given all. And a buyout? Well, seemingly, management wouldn't be averse to such an overture. True value and all. Massive premium to market level. Being entirely realistic. Drawing ever more likely as the growth/expansion push continues. And as for ROI? The near-term? Well, with the BB being what it is? The right formal word, the right spark(s)/catalyst(s) in evidence, and market level will skyrocket. Plain and simple. Tight tradable float situation. No massive abusive shorting. Solid fundamentals. First rate management team getting the job done.
And as for the mentioned meeting with a large investor(s)? And again…
"We have an appointment, in a couple of weeks, to meet with another major stock exchange company."
And what exactly is the scheduled meeting all about? And capital? Well, at the point in the Conference presentation that mention was made of said meeting we had Mr. Metter answering a question about NDA's...
"Yes. In fact we have signed nondisclosures and we are working with one company that is the biggest in the world."
So, seemingly, the upcoming meeting is related to marketing. That which has so massively improved the company's bottom line to-date. ROI. Forming the type of relationships that are so hugely proving up in terms of retail penetration success. While on the question of growth/expansion capital we have from the Conference...
(Mr. Metter)
"We've grown with very little capital."
The capital provided by RM Enterprises. And can the longer-term growth/expansion goals be met via organic means alone? RM Enterprises involvement inclusive? And seemingly so. Cash flow realities. And Mr. Moskowitz from the Conference…
"Last year we did $5.2m. This year we'll do over $40m. We should keep up with that same growth pace over the next three to five years as the products start coming out. Basically, we have about twenty-five products now. We should have one hundred by the end of 2011. The better products are still yet to come. Because we wanted to make sure, before we got into the cleaning of the kitchen and the bath ... we tested it out in cars and we tested it out on dogs before we started dealing with human beings and people in the house. So now that we know that the product works we'll be able to add it to pretty much any item in your house. Whether it be glass cleaners or cleaning the carpet or doing the dishes or doing tables. You know, mopping the floor. Those are where the big dollars in the product are and that's where our biggest gross profit margins are going to be."
The best, by far, yet to come
Buying and holding.
The big money yet to enter. The recent manipulation, the fallout, having washed through. Back to the longer-term trend. That which simply fits. The latest rumor surrounding the manipulation being that the involved 'group(s)' is/are holding tight. Having loaded up at lowest possible cost. And speaking for itself.
And yes, as talked about several times, the company's NOBO list in conjunction with the relevant period DTCC clearing detail can reveal any perceived discrepancy. Counterfeit shares being created. With the simple reality being that any/all shorting is of the legitimate variety. Having talked about it at length.
Our coming trading week hosting no end of potential to see truly massive green. With the technical story, alone, painting a hugely telling picture. And noting what happened the last time the EMA(2) [blue line] crossed above the EMA(5) [red line] and rising. The EMA(10) [green line] following...
http://stockcharts.com/h-sc/ui?s=SPNG&p=D&yr=0&mn=1&dy=0&id=p50356668140
The fundamental. The technical. The wholly telling.
Fun and profitable trading week ahead.
SPNG.
Gotta love it.
SR,
Not a problem.
On the question of Dicon Tech....
'We have also historically depended primarily on one manufacturer for the production of our cleaning products. Such manufacturer was H.H. Brown Shoe Technologies, Inc. (d/b/a [doing business as] Dicon Technologies), which closed its manufacturing operations in 2007. In 2007, an investment company bought Dicon Technologies from H.H .Brown Shoe Technologies, Inc. From that time until recently some products were manufactured in China by partners of our manufacturer under an oral agreement using encapsulation technology instead of technology relating to hydrophilic sponges. Currently, our products are being manufactured by Dicon under an oral agreement. To handle our growing sales our products are being manufactured by multiple manufacturers.'
[ To handle our growing sales our products are being manufactured by multiple manufacturers. ]
'We may still use China facilities for Pacific Rim distribution (South Korea, Japan, China, Thailand, Vietnam, etc). However, there is a significant lead time required on products manufactured abroad. As a result, to the extent that we are unable to obtain products manufactured in the United States, there is no assurance that we will be able to maintain sufficient inventory on hand to fulfill orders which require delivery in short time frames. If we are unable to deliver products to customers timely, we may lose these customers.'
[ However, there is a significant lead time required on products manufactured abroad. ]
The situation speaking for itself. Exactly what it is that's needed i.e., domestic production increase.
While on the medical front we have Mr. Metter, during the NFE Conference presentation, making the comment that the underlying technology lends itself to sponges being made as thin as 1/16 inch. And...
(Mr. Metter on the subject.)
"We can, to deviate a little, make it as small as a 16th of an inch which will give us opportunities in the medical industry. In nursing homes for cleansing countertops. Any type of medical application."
And as for the earlier mention of management soon meeting with a large investor(s)?
Well, from the Conference presentation additionally...
(Mr. Metter during the initial Q&A.)
"We have an appointment, in a couple of weeks, to meet with another major stock exchange company."
With the conference having taken place June 8-9. Meaning that our coming trading week will host the meeting.
And as for the technical?
Entirely telling…
The welcome candlestick picture.
The equally welcome EMA (Exponential Moving Average) picture.
The EMA 2-Day (blue line) having crossed above the EMA 5-Day (red line) and rising. The EMA 10-Day (green line) following.
http://stockcharts.com/h-sc/ui?s=SPNG&p=D&yr=0&mn=1&dy=0&id=p50356668140
The big picture speaking volumes. The fundamental. The technical. Next trading week poised as talked about. The serious upside. A whole host of positive factors in play. Discussed at length.
SPNG = the real deal in the absolute.
Onward and upward.
HS,
No worries.
I have no issues with responding to such requests. The boards having largely settled down at this point. Back, thankfully, to far more rational discourse.
With average daily volume reflecting as expected. In line with overall circumstance inclusive of share structure realities. The massive abusive shorting contention amounting to nothing more substantive than the fanciful. The trading pattern, over time, telling the story. Being there for all to see. No arguing.
The ever-present machinations of the BB coming to the fore last Friday. The market level impact washing through. The longer-term trend to continue. With no chance of a repeat. Cannot be, for obvious reasons. With management opting to not formally address the manipulation. Opting, instead, to simply leave the BB behind. Our having talked about the imminent arrival of a number of industrial strength PR's. NASDAQ intent inclusive.
Today's session representing the last opportunity to add/enter at lowest possible cost. Before market level soars far in advance of our recent High of $0.2851. Management flatly stating being not happy with the Friday criminality. The self-serving behaviors. Being more motivated than ever previously to gain the senior listing. ASAP.
The PR parade having understandably tapered off. It being no longer about bolstering the earlier upside. It being now about leaving the BB behind. Doing what's right. What's called for.
The formal word, to come, poised to see market level skyrocketing, yes. But the crux being the near-term gaining of the senior listing. Leaving the BB, the ever-present machinations, behind.
Simply buying and holding.
Management being on the verge of coming through big time!
A little indeed 'creative' thinking. The long-term success of the company dependent upon it. Exposure. The input of worthwhile analysts. Capital raised the right way. Much more. The 3 to 5 year growth/expansion goal calling for the infusion of multiple million$.
Essential. Urgent. Gaining the senior listing. ASAP. As very clearly evidenced last Friday.
Next trading week poised to put smiles on the faces of all involved. The long side.
The resurgence of the PR parade in the best way possible.
And, indeed, feel free to write.
All the best.
What's been said, a number of times, is that a 'group(s)' orchestrated Friday's miscreancy. An, as yet, unidentified 'group(s)'. No one, as yet, having provided verifiable fact regarding identity(ies). And not likely to.
And courtesy of T. Sykes...
"Real companies don’t hire promoters to pump their stock and that’s why real companies don’t tank 60% intraday. This is not a real company, it’s a pump & dump."
And a fine example of that which is hardly conducive to the market level upside. A whole host of the SPNG libelous having been presented, in various formats/forums, by 'The Dean', T. Sykes, M. Speeks, et al. The latest spew, about an SEC investigation, no less fit to be filed with the earlier such. Where the sun don't shine.
Credibility indeed.
Clueless wonders indeed.
The Friday fallout washing through. The pre-Friday trading dynamics understandably returning. The longer-term trend. Our coming session poised for continued green. The technical. The fundamental. The painting of the picture.
SPNG = the real deal.
Massive ROI in the making.
The BB be damned!
Time for a senior listing. With management being no happier about the Friday criminality than is the rest of the company's shareholder base. Being more motivated than ever previously to get the job done. ASAP. No time being wasted.
Industrial strength PR's in the offing.
Getting on with getting on.
The big picture. The longer-term reality. Targeted gross revenues of $500m plus.
Onward and upward.
E-mails/PM's/replies received.
And as per collective request...
Starting with the usual misinformation/disinformation routine.
And from a certain post of not long ago…
"To clear a few other things up: Regarding the Gagged Transfer Agent (TA)
Companies such as Berkshire Hathaway, Hansons Natural foods and many
others have done so and/or applied to do so for one reason or another,
however before any TA is gagged the SEC has to approve this order
because gagging the TA without the SEC's consent would be in violation
of the Freedom of Information Act. It is not solely up to the company
and Spongetech couldn't just tell the TA they are not allowed to say
anything about the share structure Further, the SEC clearly states
that in order for a TA to be gagged, a company must file Form "CT
order" (which Spongetech did in 2008) and furthermore, the SEC will
not allow the gag order unless the company clearly demonstrates that
the gag order is "in the best interest of the public/ shareholders"
(taken directly from the SEC website)."
And now we'll transition back. From fantasy to fact...
Yes, SPNG did file for a CT ORDER (Confidential Treatment Order) in 2008. A request relating to a certain and specific quarterly report. And..
'Spongetech Delivery Systems, Inc. submitted an application under rule 24b-2 requesting confidential treatment for information it excluded from the Exhibits to a Form 10-QSB filed on April 15, 2008.'
And from that certain and specific quarterly report…
1_
'Agreement dated March 25, 2008 between the New York Yankees Partnership and Spongetech Delivery Systems, Inc.* (Confidential treatment has been requested with respect to certain portions of this Exhibit. The omitted portions have been separately filed with the Securities and Exchange Commission)'
2_
'Letter Agreement between Spongetech Delivery Systems, Inc. and Sterling Mets, L.P. dated April 11, 2008.* (Confidential treatment has been requested with respect to certain portions of this Exhibit. The omitted portions have been separately filed with the Securities and Exchange Commission)'
3_
'Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. … A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.'
What the CT ORDER, in question, relates to are the numerous NDA's (Nondisclosure Agreements) entered into in line with the above-referenced agreements (1_) and (2_).
Having absolutely nothing to do with any gag order placed upon SPNG's TA. Such being utter nonsense. Complete idiocy for any party to suggest that the SEC need be involved in any gagging of a public company's TA. A public company being entirely at liberty to act on its own in such a matter. At its own discretion.
And just another stellar example of mis/disinformation indeed. The facility with which folks will accept at face value. So ready to believe. To accept. Being lazy. Taking the path of least resistance. And how many, indeed, believed the posted nonsense? Buying it all hook, line and sinker? And a good thing? Fantasy vs. fact?
And now onto last Thursday's NASDAQ meeting.
And starting with…
Question:
'Does NASDAQ offer a preliminary listing eligibility review for prospective applicants?'
Answer:
'Yes. A company can seek a preliminary listing eligibility review by NASDAQ Listing Qualifications prior to applying. Pursuant to this review, the Listing Qualifications Staff will review the company's public filings to determine if it meets the numerical listing requirements. In addition, to the extent questions are raised by the company, the Listing Qualifications Staff will consider compliance with the corporate governance requirements of Listing Rule 5600, such as board and board committee structure, and regulatory concerns, such as may be raised under Rule 5100 and IM-5100. In considering whether any such questions exist, the company may find it helpful to review the information necessary to be submitted with Part IV of the Listing Application.'
'The Listing Qualifications Staff will, if necessary, meet with a prospective applicant to discuss any preliminary conclusions reached during this review. Once completed, Staff will determine whether it appears that the company satisfies NASDAQ's numerical initial inclusion criteria and whether any corporate governance or regulatory issues raised by the company would serve to prohibit NASDAQ from listing the company, and Staff will issue a letter to that effect. Any final approval, however, will require the company to submit a formal listing application, and is conditioned upon final review of that application and the company's continued compliance with all NASDAQ criteria for initial listing at the time of listing. In addition, any final approval will require a satisfactory conclusion of certain additional qualitative reviews that NASDAQ will perform, including a review of the regulatory history of the company's officers, directors, and significant shareholders.'
'Companies interested in this preliminary review process should contact Robert McCooey, Senior Vice President, New Listings and Capital Markets, at +1 212 401 8724. (Updated: April 13, 2009).'
The Thursday meeting simply makes sense. And with such in mind does it additionally make sense that management would not broach the stock consolidation issue? The path of least resistance to overcoming the pps roadblock?
And recalling how SPNG came into existence...
'We were formed on June 18, 1999, under the name Romantic Scents, Inc. On June 12, 2001, Romantic Scents, Inc. changed its name to RSI Enterprises, Inc., and, on October 2, 2002, changed its name to Spongetech International Ltd. On July 15, 2002, we entered into a stock purchase agreement with Nexgen Acquisitions VIII, Inc., a blank check company, pursuant to which our sole stockholder, RM Enterprises International, Inc. received 12,000,000 shares of Nexgen Acquisitions VIII, Inc. and thereby became its majority stockholder. The transaction was accounted for as a reverse acquisition using the purchase method of accounting, whereby RM Enterprises International, Inc., our sole shareholder, retained approximately 63% of the outstanding common stock. Thereafter, on October 9, 2002, Nexgen Acquisitions VIII, Inc. changed its name to Spongetech Delivery Systems, Inc. On December 16, 2002, we changed our domicile to Delaware. Spongetech Delivery Systems, Inc. (formerly Nexgen Acquisitions VIII, Inc.) merged with and into us so that we became the surviving company. Immediately subsequent to the merger, we changed our name to Spongetech Delivery Systems, Inc.'
The Thursday meeting having answered a lot of management's questions. And is it logical that the initial listing pps requirement can be met in a reasonable time frame given the exposure to the manipulative practices of the BB? Lesson not learned?
A merger. The answer. Given the fact of management's steadfast distaste for a consolidation of the Outstanding stock. For a reverse split. Negotiations/discussions with an NCM component simply strikes as what best fits. A 'creative' merger. Or an acquisition. Whichever. Quick. Simple. Cost-effective. The Thursday meeting making sense. Management understandably wanting/seeking a great many answers before actually submitting an application to list. And, thus, my personal contention that we'll soon be playing welcome witness to a PR('s) outlining intent re M&A. Discussions/negotiations entered into. NCM component. Quick. Simple. Cost-effective. Getting the job done 'creatively'. Senior listing. The long-term future of the company depending upon it. The time being now. Essential. Urgent. Advancing to the next level in more ways than one.
And as for the massive abusive shorting issue, yet again?
I'm, personally, of the empirical bent. What it is adds up/makes sense observationally. And if any in routine attendance among us can point out, graphically, just where he/she/they believes/believe our registered MM's were getting seriously naked? Well, indeed, point out the specifics and we'll talk. Let's take a close look at the graphical. Get down to the nitty-gritty.
With Rule 3360 having been amended as talked about...
'NASD Rule 3360 has been expanded to require FINRA member firms to report their short positions on all over-the-counter (“OTC”) equity securities to FINRA effective July 3, 2006.'
Additionally, the Grandfather provision eliminated.
Myself, I take little at face value. Being not lazy, Seeking, always, my own answers. Trusting in only myself. With it being hardly unheard-of that a public company's float will turnover during any particular trading session. It being up to each and every involved to think/believe as he/she sees fit. The NSS issue and all else.
And there I'll leave it.
While on the issue of last Friday, yet again...
And been there, done that.
A group(s). 'The Dean'. T. Sykes. Moe Speeks. Et al. FUD routine. The spiraling down.
And summarizing…
The 'group(s)' were long. And at the 'top', opened a collective massive short position. Unloaded the long position. Downward spiraling. Short-side covered. Massive profiteering. The long and short of it. Being not rocket science.
And...
(Posted by Moe Speeks at 8:39 A.M.)
"I was not going to release this information but I feel it is only fair for the people to know that Spongetech is in fact being investigated by the SEC,,, as you can see from the phrases contained in the emails below - "regarding this investigation" - "aspects of this investigation" The SEC is collecting evidence. I was asked to burn to disc emails I had from several people and send it to the SEC. If you have any evidence you wish to share with the SEC concerning Spongetech I advise you to email it to this woman. She is a lawyer for the SEC and the person who called me. As you can see from the below emails she will not release any information about the investigation so make sure you include your phone number in your emails and maybe she will call you to discuss your evidence."
And the rest of the tripe...
http://moespeeks.blogspot.com/search?updated-min=2009-01-01T00%3A00%3A00-07%3A00&updated-max=2010-01-01T00%3A00%3A00-07%3A00&max-results=27
Misinformation. Disinformation. Utter nonsense. The self-serving. The criminal. No end of those attempting to mindlessly tear down SPNG and its first class management team.
With our having said, earlier, that the Friday fallout would eventually wash through. That the pre-Friday trading dynamics would resurface. And indeed. Exactly what we're starting to understandably witness. Tomorrow's session to see the continued upside. With some, indeed, interesting PR's to very soon arrive. Formal word going to light a hugely serious fire under market level.
Waiting anxiously.
Adding/entering at lowest possible cost while the doing so presents itself. Accepting little at face value. Being not lazy. Indolence being its own unwelcome reward.
And a little enjoyable video something for those who might not already be aware...
http://www.shazamstocks.com/profiles/spng/index.php
SPNG = the real deal in the absolute.
Massive ROI in the making.
Total no-brainer.
PM's,
Thank you.
And you're welcome.
And thanks to the rest.
On the valuation question...
We need bear in mind that we're talking about a proprietary technology...
http://www.spongetechs.com/v/vspfiles/technology.asp
It being the patents, pending patents, trademarks and the related where the company's value lies. Intellectual properties. The popularity of the products based on the company's technology.
And should a multinational corporation show interest? Buyout overture? SPNG will be valued in terms of intellectual properties realities and, operationally, in future terms. Rate of growth/expansion.
A buyout offer at a massive premium to market level.
The company having developed valuable relationships at both the wholesale and retail levels. Relationships relative to production additionally. Meeting demand. Some plants to soon be in operation 24/7. The company's asset base growing/expanding. Gross margin anticipated to grow exponentially. Cash flows and net earnings accretion. So on.
SPNG heading rapidly toward fully operating status. Being operationally self-sustaining. Cash flows from operations.
A choice takeover target.
The NASDAQ folks understandably impressed. Audited numbers reality. The latest operational, etc. detail. But unwilling to bend the rules/regs. And same is understandable. And we were on our way. Market level ascending in line with company true value circumstance. Until the bottom fell out. Criminal behaviors. And I know how I would feel were I running the show. How management feels.
The Thursday meeting having come and gone. Well-received but no concessions. M&A time it being. Managerial focus on gaining a NASDAQ listing in the absence of wasted time..
All the bits and pieces -- all the relevant detail -- painting a clear picture.
The talked about PR('s) in the offing. M&A discussions/negotiations having been entered into with an NCM component. SPNG vaulted to listed status. A worthy NASDAQ component growing/expanding rapidly. All the advantages that being listed offers.
A mutually beneficial bit of 'creative' clear thinking getting the job done. Quick, simple, cost-effective. All involved parties winning. Longer-term goals achievable with market level soaring. The eventual effect of applicable multiples inclusive. As the definitive is achieved.
And recalling from the Conference presentation...
(Mr. Moskowitz regarding the buyback.)
"That was one of the things that really helped our stock price going up in the last month. By doing the buyback."
And with no end of counterfeit shares being created? Abusive shorting behaviors? A buyback? Simply throwing money away? Were the claimed NSS abuse factual? Market level would be in the cellar. Unable to escape. Boxing routine.
SPNG NSS = pure fantasy.
Trading pattern simply doesn't support it. Not even close.
All the way to $0.2851 with a Ten-Day Average Volume well under 200m.
And no worries on the TA front. All being well.
This board, unfortunately, having devolved to gutter level. The Friday fallout having far-reaching consequences/effects. A once pleasant read but no more. Too much mindless drivel to wade through. The gutter trash of the world having, sadly enough, arrived in droves.
Time to call it a day.
Simply holding tight while awaiting the arrival of the mentioned PR('s). The follow-up definitive. SPNG well on its way to long-term success. Going concern reality.
Market level soaring.
The sought-after ROI.
And nice to know that our misguided friend DarkLady reads my posts.
All the best to all.
May we all of us, and ours, live long and prosper.
You're welcome.
And thank you.
PM...
A tad confusing? And, no, not really. Going back to the 2005/2006 area we're talking…
NASDAQ National Market
NASDAQ Small Cap Market
What I use to call (respectively)…
NAZ Senior
NAZ Junior
And today we're talking…
NASDAQ Global Market (Senior)
NASDAQ Capital Market (Junior)
NASDAQ Global Select Market (formed to host top-tier companies)
Albus...
Charts don't lie. Only self-serving miscreants such as 'The Dean' and T. Sykes do. And out-of-the-gate we did see another walk-down. Followed by what the technical signaled. The solid upside to a High of $0.1650.
The trading dynamics having changed. The day traders back in the picture. Many folks just generally skittish. The Friday antics serving to undermine. And any of the folks directly involved in the manipulation could very well be the next person any of us meets on the street. Friendly smile and all. And a hell of a world, hmm?
The market level aftermath will wash out as our trading week progresses. Back to the pre-Friday dynamics. Out of the clutches of the day traders once again. The underlying fundamentals ever-strengthening. Operational reality. With the market level crux at this juncture being the listing. Attaining the NCM. With our knowing that, fundamentally, SPNG would be well-received by the relevant Listing Council. The meeting. Coming as no surprise. Management having painted the picture. Only pps circumstance standing in the way. Being the primary roadblock.
The gist of the situation being that said Council, despite SPNG's resistance to the global economic downturn, isn't willing to bend the rules/regs. regarding pps requirement. Management coming away from the meeting with M&A in mind. A merger or an acquisition. And it would be interesting to know management's stance regarding a possible buyout. Should the P&G folks, for example, make an offer. One that fits. Would management be for or against? Shareholder value considerations? Such an overture, after all, sending market level skyrocketing. And being far from out of the question. Entirely realistic as discussed.
SPNG = choice takeover target.
Current managerial focus being M&A. Merger or acquisition. One or the other. The likeliest scenario being as earlier discussed. Approaching an NCM component going to be open to a mutually beneficial deal. A 'creative' merger or acquisition. Quick, simple, cost-effective. And were we, let's say, to very soon be on the receiving end of a PR telling of discussions/negotiations having been entered into relative to M&A with an NCM component? And market level, again, would skyrocket. Green and more green.
The overall situation better now than previously. Achieving the NCM via uplisting being a long, drawn-out process. Necessary pps and all. But the M&A approach? And a far different story. An entirely welcome story. Time being of the essence. Escaping the BB. The manipulation. Successfully achieving longer-term goals.
Management needing/having to wait for the meeting with the NASDAQ folks. Seeing what came of it. Being not focused on M&A considerations prior. But now? Different indeed. Post-meeting reality. Now focused on M&A considerations. And in light of the distinct need of the listing? Successfully achieving longer-term goals? Being essential? Urgent?
There being no moss growing on management whatsoever. Being not about to procrastinate. To waste time. The meeting over and done with. SPNG well-received but with no concessions. A pps roadblock.
The reality being that an M&A discussions/negotiations PR could hit the wires at any time/moment. Management's way of countering the Friday criminality. No time being wasted. And the ideal time, it is, to be getting on with the M&A show given the economic downturn. Numerous NCM components being entirely open to listening. Entirely receptive to any such overture. Mutual benefit. SPNG having a lot to offer. Being no fly-by-night outfit.
Buying and holding.
Time for a listing. Plain and simple. All that same has to offer. Essential. Urgent. Market level skyrocketing.
Previously, the push from the inside relative to a permanent end to the grossly undervalued situation. A supra-$1.00 pps circumstance in line with achieving the NCM via uplisting. But no more. It striking that the Friday antics changed all. Management intending to counter via the discussed M&A. Releasing a bomb of a PR('s) and on to the definitive. Listing. Successful deal. Happy management. Happy shareholder base.
While on the technical/candlesticks front we have a case of a lot to learn. But in (ahem) short it has to do with volume and the Close relative to the Low and High of the day. It being a lengthy, time-consuming task to explain in detail via a post and so I'll take the liberty of providing you, instead, a couple of fitting links…
http://stockcharts.com/school/doku.php?id=chart_school
http://en.wikipedia.org/wiki/Candlestick_chart
It paying to learn.
Bearing in mind that what the technical signals can see little follow-through as a session progresses. As in today's case. The Friday fallout to consider. Day traders. Skittishness. Choppiness. Major markets/exchanges lackluster. So on.
Management, doubtless, has formulated a plan. To counter the Friday antics. The fallout. Overcoming/transitioning via a bomb of a PR('s). M&A discussions/negotiations. Followed by the definitive. Successful deal.
Onward and upward big time!
Buying and holding indeed.
Shareholder value indeed.
And on the TA question?
Any public company being entirely at liberty to hire/fire same at will. Or to entirely forgo. A public company acting as its own TA. Maintaining the necessary records. The relevant department. TA services being a dime a dozen. Nothing special.
The central point being the relevant SoS (Secretary of State). With whom the necessary documents must be filed. Stock consolidations. Changes to the Authorized. Articles of Incorporation amendments. Retirements/cancelations. So on. The TA updated down the line. A need of understanding. A gagged TA, in SPNG's case, being a no-brainer. Discussed at length.
And being "new" you need be cautious of this board and similar others. The misinformation. The disinformation. And how many folks offered up a unique viewpoint/'opinion' relative to the Friday goings-on? And can all be accurate? How many of same making it clear that what was posted was indeed personal viewpoint/opinion? How many others being far more convinced? And yet misguided?
And massive abusive shorting?
And dreaming on.
The ongoing trading pattern, inclusive of volume, spelling out the reality.
And, so, treading indeed carefully. Educating one's self. Taking little at face value. Thinking clearly. Being not lazy. Winning in the end. Money in the bank.
With some interesting PR's in the offing. What the overall picture does paint.
Buying and holding indeed.
Money in the bank.
Indeed.
Young…
NHGI/PROT (Azurel, Ltd. by charter)…
'MICHAEL METTER was appointed President of Azurel in October 2002, a position he held until the appointment of Mr. O'Grady in February 2003. Mr. Metter was the Chief Operating Officer for Azurel until his resignation on June 28, 2003.'
And noting how well market level did during Mr. Metter's tenures. Collapsing only after others took his place...
http://www.nasdaq.com/aspx/chartingbasics.aspx?intraday=off&timeframe=10y&charttype=ohlc&splits=off&earnings=off&movingaverage=None&lowerstudy=volume&comparison=off&index=&drilldown=off&symbol=PROT&selected=PROT
And speaking volumes?
Hmm?
WPEC…
'Mr. Metter has served as director since February 11, 2003.'
[ director ]
And...
'Our Company's board of directors has determined that at least two audit committee financial experts are serving on our audit committee. Mr. Metter and Mr. Fisher, are financial experts and are independent as that term is used,,, .'
Nice try.
But no cigar.
Today's session poised for significant gain. Major move up. Candlesticks never lying…
http://stockcharts.com/h-sc/ui?s=SPNG&p=D&yr=0&mn=3&dy=0&id=p39652404933
Thanks for the replies.
Rook...
Our well knowing, at this point, what Friday's action was all about. Profiteering. Playing both the long and short sides. Having talked about it in detail. The run-up. The manipulation. Folks such as 'The Dean' and T. Sykes with their self-serving 'analyses' setting the stage. The follow-up FUD routine. "The sky is falling!" The short side. The profiteering.
Classic.
And while the trading dynamics were altered, the fundamental picture has not. Other, that is, than today's welcome formal word. Fiscal '10 marketing ramp up. Friday's action serving to see SPNG under that proverbial microscope. And all to the good.
The hostile takeover mention amounting to a 'food for thought' situation. SPNG being a choice takeover target. An entity(ies), domestic or offshore, seeking to capitalize on a golden opportunity. Gaining leverage at the very least. Anything being possible.
The longer-term trend being unchanged. Our knowing well what the future holds in terms of growth/expansion. Projections and guidance numbers to be released continuously. Keeping shareholders informed. Numbers being the key. Forward periods realities. What it's all about.
The underlying venue lending itself ideally to the type of manipulation witnessed. Profiteering. Self-serving short side antics. Those involved caring not a whit for the innocent others caught up in the criminal behaviors. The lies. The deceit.
Risk/reward being one thing. SPNG undergoing a legitimate trend reversal, for example. Fundamental/operational reasons. Deliberate manipulation being a whole 'notherr matter. Nothing (ahem) short of daylight robbery. And can't happen again. For obvious reasons.
And had the manipulation not been? Well, in line with our latest PR's, market level would be at $0.50 plus and climbing. But the underlying venue is what it is. Manipulation going with the territory. And the very reason why management is so gung ho to say goodbye to same.
With it looking, at this point, like we're talking about a merger. And not necessarily with an NCM component of fitting operational focus. Management could well set their sights on a company with a failed or failing business plan/model. A company distressed/struggling. A company interested in a change of operational direction. One of those at sub-$1.00 trading levels. Being entirely open to merger overtures from SPNG.
And for those who might not be aware…
The NASDAQ Capital Market was formed from the NASDAQ Small Cap Market in 2005.
It's definitely shaping up as being the best option. A merger. The move to a listing being essential at this point. SPNG growing/expanding rapidly. A distinct need of the exposure that such a listing would offer. Investment community interest. Analysts of actual merit. Unlike the above-mentioned self-serving jokers who worked so hard to bend reality on Thursday and Friday. Caring not a whit for others. The innocent.
And if not a merger then an acquisition. A mutually beneficial deal with an NCM component with failed or failing operations. Distressed/struggling.
The bottom line being that we need the listing. By whatever means. Needing to happen. And soon. SPNG being taken seriously by the big money. In need of a pps representative of company true value circumstance at the very least. Getting the company listed. Successfully achieving longer-term goals. Targeted gross revenues of $500m plus.
The Friday fallout over and done with. The pre-Friday trading dynamics to return. The major markets/exchanges to see a better day.
Back to $0.2851 and on to $0.40 plus.
A permanent end to being grossly undervalued.
Buying and holding.
Jandrsn…
"? Vol."
Results from:
(1)
Trades that take place BETWEEN the Inside Bid and Inside Ask.
(2)
Trades that take place when the Inside Quote is a 'box' situation i.e., Bid and Ask the same.
The involved 'system' unable to distinguish a Buy(s) from a Sell(s).
And a 'box' example from today's trading…
(Price / Volume / Exchange / Time / Bid / Size / Ask / Size)
0.1700 10 (U)10.49.27 0.1700 50 0.1700 50
0.1700 50 (U)10.49.27 0.1700 50 0.1700 50
0.1700 20 (U)10.49.27 0.1700 50 0.1700 50
Jeff,
Appreciated.
Thank you.
And thanks to the rest.
With it having taken virtually the entirety of the weekend just to convince all involved of what it actually was catalyzed Friday's activity. And would've been helpful had said all been on the same page sooner. But alas!
And, certainly, it's only natural to support one's own investing/trading interest in the absence of undeniable reason to do otherwise. And yes. It being for the overall best for management to formally address the manipulation. The continued honoring of fiduciary duties. Though, having said that, we need also consider that said management is extremely busily focused on building a very real company and is, additionally, diligently hard at work in line with bidding a welcome goodbye to the BB ASAP.
And a merger? Buyout? The possibility? And, certainly, entirely realistic. And an example…
(January 5, 2009)
'GeneThera, Inc. (OTC: GTHR) is in discussions with a public company traded on the NASDAQ for a potential merger or acquisition.'
'The Board of Directors at GeneThera believes a merger with a larger, more recognized company to be a great way to bring the company's technology and latest developments to market.'
'"Any merger will greatly enhance shareholder wealth and allow us to maintain control over our existing projects," noted GeneThera's Dr. Tony Milici.'
It being a good idea for SPNG longs to isolate a few target/suitor possibilities. Doing a little homework. Seeing what we can come up with in the way of fitting mutual benefit. Synergy.
SPNG...
Industry:
Household Products
Sector:
Non-Cyclical Consumer Goods & Services
With it also being within the realm of possibility that what we witnessed Friday was related to a hostile takeover attempt. Far from out of the question given the fundamental obviousness of SPNG. The rate of growth/expansion. The pps reality. An entity(ies) seeking to gain control. Or, at the very least, be in a position of leverage. SPNG, in light of the market level gross undervaluation situation, representing a choice takeover target. Entirely realistic.
Much to consider.
Now and later.
And today's action? Out of the gate? And a walk-down followed by a walk-up...
http://www.nasdaq.com/aspx/chartingbasics.aspx?intraday=on&timeframe=intra&charttype=ohlc&splits=off&earnings=off&movingaverage=None&lowerstudy=volume&comparison=off&index=&drilldown=off&symbol=SPNG&selected=SPNG
The lion's share of the session's volume involved. MM's maximally profiting (as always) with many retail Buy orders placed in line with a possible opening dip. An easy enough read. With the major markets/exchanges taking a bath. Ugly session all around from a long perspective. The overall sentiment to the down-side. Not helpful. Better days to come.
The fallout from Friday at an end as of today's Close. The overall trading dynamics to return to the pre-Friday reality. In line with continued good word from the inside. The Friday carnage over and done with.
While on the Accounts Receivable front we have…
May 31, 2008:
$4m
February 28, 2009:
$14m
And…
'Accounts receivable have been adjusted for all known uncollectible accounts. As of February 28, 2009 and May 31, 2008 there were no doubtful accounts. International accounts represents sixty-seven per cent of total receivables as of February 28, 2009 and approximately seventy per cent as of May 31, 2008.'
'The Company has continued to experienced significant revenue growth through the nine months ended February 28, 2009. This trend, if it continues, may result in higher accounts receivable levels and may require increased production and/or higher inventory levels. Should our cash requirements to fund these requirements as well as other operating or investing cash requirements over the next twelve months be greater than our current cash on hand, we may seek to obtain additional financing.'
With our having heard, via the grapevine, about a recent meeting with a large investor(s).
Today's formal word continuing to paint the to-smile-about picture. A serious ramping up of marketing in fiscal '10. Building upon that which has been so extremely effective to date. Value/valuation. The coming new SKU's and all.
And...
'Management has made the choice to heavily invest in furthering our brand equity and recognition in the marketplace.'
Money in the bank.
Onward and upward.
A buy and hold special.
The Friday fallout over and done with. A return to the earlier dynamics in the offing. The wholly understandable. That which simply fits.
Green and more green.
Mingy…
The number you reference does not refer to institutional holdings. It refers to 5% ownership threshold. Dated detail. And a link that will help you to understand...
http://moneycentral.msn.com/ownership?Holding=5%25+Ownership&Symbol=SPNG
In SPNG we, most assuredly, stepped in something good. Massive ROI in the making in light of all. Very much inclusive of management's understandable intense push to escape the BB.
Uplisting.
Merger.
Acquisition.
Buyout.
Hostile takeover.
Money in the bank in the absolute.
Thanks to all.
Wes...
Thank you.
Kind words appreciated. Invitation appreciated.
My being always open to worthwhile discourse. Mutual interest. Mutual benefit.
Doc…
I'll be here.
And thanks.
With our knowing about the meeting with the NASDAQ folks. Additionally, via the grapevine, a meeting with a large investor(s). The precise natures and outcomes of said meetings we hope to become privy to at some point. But, if indeed, management can convince the relevant Listing Council of the rationale earlier discussed? SPNG is off to those proverbial races. For, absolutely, the longer-term gross revenues goal of $500m plus cannot be achieved at the BB level. A Listing Council we well know is willing to listen in light of the global economic downturn. Willing to suspend certain rules/regs. regarding continued listing requirements relating to pps. So on.
SPNG largely meeting the NCM initial listing requirements with, primarily, the exception of pps circumstance. And being wholly resistant to the referenced downturn. Convincing the NASDAQ folks of the inherent logic should not prove all that difficult. And, particularly, as market level approaches, and exceeds, the $1.00 mark. Which it will in coming days.
All involved being now on the same page relative to the Friday goings-on with our coming Open poised for the explosive upside. The shorts imploding. And how sad, of course!
Hmm?
Our having had the luxury of the weekend to wind tight the spring. To overcome the FUD. To present the facts. To clear away the obvious refuse. The fact of the current SPNG price of admission being a gift.
Our coming Open to see the explosive upside. Massive out-of-the-gate adding/entering with what's remaining of the shorts being forced to cover at ever-advancing levels. Adding to the welcome momentum.
And recalling...
'On September 5, 2008, the Company announced a share repurchase program. For the period ended February 28, 2009, the Company repurchased 55,824,336 shares of common stock at an average price per share of $0.0308. The Company will repurchase up to 100 million shares of stock under the plan. The repurchase plan will expire after 12 months.'
An open market buyback. Treasury stock. Which is not considered to be part of the company's Outstanding count. And also there are ongoing cancelations/retirements relative to buybacks and RM Enterprises plus addition cancelations/retirements.
The reason behind the TA being gagged being no mystery. Being not rocket science. The agency unable to routinely disclose accurate information. Latest share structure detail. The relevant documentation needing to be filed with the relevant SoS (Secretary of State).
Our coming trading week to see industrial strength green in the absolute. Graven in stone. The continuing advantaging of a golden market level opportunity. Opening gap up and all.
With management stepping up to the plate as called-for.
Adding hugely to the welcome momentum.
Green and more green.
SPNG = the real deal.
In the absolute.
Doc,
Thank you.
The many kind words appreciated.
And, will do.
Supporting one's own investing/trading interest, in the absence of undeniable justification to do otherwise, being only common sense.
And while the Friday bit of business is definitely getting beaten to death at this point -- no end of erroneous viewpoints/opinions on the subject -- we'll cement the reality one last(?) time. Just what it was precipitated the goings-on. And…
[ Noting the date and time of the 'article'… (Thursday) June 11th, 2009 at 2:03 am Posted by The Dean ]
http://collegestock.com/blog/penny-stock-failures-bad-management-on-wall-street-spng/
The FUD posting routine getting seriously underway thereafter. The first of which, seen by yours truly, being...
"Big dump coming!!!"
"SEC investigation!!!"
Friday's activity having nothing to do with MM inventory circumstance. There being no shortage of volatility/profit-taking during the run-up. Plenty of inventory. And no MM('s) would go seriously short in the absence of the obvious coming down-side. Obvious trend reversal. Order flow change.
We're talking about manipulation. Plain and simple. The egregious variety. Blatant greed with no regard for others.
Friday's activity = manipulation = no-brainer.
A 'group(s)' orchestrating the far from OTC atypical. Advantaging the nature of the venue. Wide open to abusive behaviors.
The plot wholly succeeding. The rapidly spreading FUD routine yielding major gains for the perpetrators. Perpetrators still diligently at work, as of this writing, attempting to precipitate even greater down-side profits. The latter session charge off the bottom being, understandably, not to their collective liking. Close of $0.17.
And our registered MM's?
Having seen what we talked about. The obvious coming reversal. And shorting it was. And then back to $0.17 at the Close. Back to the long side. Same to continue as of our next Open. Back to $0.2851 with ease and on to $0.40 plus. Far greater things ahead.
Management going into 'damage control' mode. Hitting the wires with the called-for PR's. Reassuring the company's shareholder base. Setting the record straight. And putting it simply…
Expect a 'Shareholder Update' PR and much more. There being FAR too much at stake for anything less.
And a passage from one of Monsieur Sykes mindless presentments…
"Real companies don’t hire promoters to pump their stock and that’s why real companies don’t tank 60% intraday. This is not a real company, it’s a pump & dump."
And indeed. Real companies don't tank. Not in the absence of blatant manipulation, they don't. The twisting of the truth. The shading of the facts. The spreading of FUD. The obvious rest of it.
And, hopefully, we've now managed to put the Friday question behind us for good. Having opened the necessary eyes.
SPNG = the real deal.
With ascension to the NASDAQ being essential. The Friday fallout being a blessing in disguise. For the reasons earlier stated. The big money more attentive than ever. Completing the called-for due diligence. Many posters to this board being affiliated, in one way or another, with said money. Well aware of positive opinion/thoughts re SPNG. The company's management team. And recalling the Conference presentation. The initial Q&A. The NDA's, trademarks and patents questions. The sore thumb obviousness.
Getting the NASDAQ nod sending market level soaring to $2.00 plus. And on from there to fitting valuation. The effect of applicable multiples inclusive.
The coming annual filing (August) poised to be a to-smile-about eye-opener.
And the prospect of a buyout? Massive premium to market level? And far from out of the question. Extremely realistic. An offer, or two, from the long-established. Multinational and all.
A buy and hold special.
Our next Open seeing green and more green.
The manipulation over and done with. No chance of a repeat. The truth/facts revealed. The continued FUD routine being entirely dismissible. The mindless spewing of verbal diarrhea.
The called-for Shareholder Update in the offing. Much more.
Formally setting the record straight.
SPNG = the real deal.
The sore thumb obviousness.
And thanks again.
LJ,
Hello to you.
And no.
But I believe I found what it is you reference.
And should I go ahead and advantage the kind offer?
Thanks.
Jeff...
Truth be told?
It's far past the time that the antiquated, MM-based telephone trading system be extinguished in favor of an all-electronic such. One in which the natural market forces of supply and demand take precedence.
The number one mandate of MM's being to minimize volatility. Job one. Empowered to go long or short at will. Within the confines of buying power. Another mandate surrounds liquidity. And same is nothing (ahem) short of the wholly self-serving under the guise of 'making a market'. Entirely laughable. Time indeed for an all-electronic system. Across-the-board. The end of self-serving middlepersons. Blatant greed.
Allowing each and every public company to survive on its own merits. Creating its own liquidity. The way it should be. Entirely level playing field. No egregious manipulation. And why the groundswell of complaints about abusive shorting and the related? Why the need of the SEC to finally step up as called for? Amendments adopted, so on? And because we're talking all-electronic? Because all was well?
Situation speaking for itself. A few hundred folks on Wall St. holding the rest of the country hostage. Until the SEC did, finally, decide to honor its own clearly stated mandate.
And…
'The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.'
[ to protect investors ]
And laughable indeed. For decades. As a few hundred folks on Wall St. did, absolutely, rob the country blind. Over 7,000 startup/development stage companies decimated. Egregious abuse. Criminal behaviors.
With a 'correction' referring to the market as a whole. Not an individual stock.
SPNG getting no shortage of coverage as of Friday. And all to the good as the fog lifts. The truth emerging. The ongoing discussion doing the big picture a world of good. With management to step up to the plate. As talked about.
Our coming trading week to be seriously green.
Welcome formal word upon welcome formal word.
With getting the NASDAQ nod seeing market level soaring.
Time for all the advantages that such a listing offers. Current managerial focus on taking the company to the next level operationally, on product development, calling for very significant capital infusion. A serious growth/expansion push, whether organic or external, always does. With tens of million$ being needed over the next 3 to 5 years. Longer-term goals being brought successfully to fruition. And can it all be accomplished entirely via internal means? Synergies? Economies of scale?
And we'll know more as the numbers continue to be released. The company's products being more than well-received. Mass market appeal no end. A gross margin to smile about. The future boding more than well. Exponential growth/expansion.
Collectively we did, most definitely, step in something good. Good and then some.
Looking forward to our coming trading week.
Market level roaring back to Friday's High of $0.2851 and on from there.
Graven in stone.
Watching and learning.
Thanks all.
PM,
Firstly…
Yes.
Only good can come from any official focus on Friday's activity.
No argument whatsoever.
And I can recall a company of some time back, many of the shareholders of which steadfastly (and I mean steadfastly), maintaining that abusive shorting was rampant with the stock. No end of counterfeit shares being created. And we're talking a time prior to the latest amendments to Rule 3360, etc. And, additionally, a stock trapped in the cellar. Lowest possible cost scenario. With myself maintaining that there was no such. No abuse. Trading pattern simply didn't support it. The constant board chatter, on the subject, coupled with complaints to management, seeing said management eventually launching an official investigation. The end result of which was that there was no egregious abuse. No massive short position. Purely imaginary.
As time went by however, many months, the tune from the inside changed. Claiming a massive short position (billions in fact) with the intent, from the inside, to force a squeeze. Squeeze play. The stock having been trapped in the cellar the entire time. With management continuing to (ahem) force the issue home. Intent to force a squeeze. Generating no end of excitement among the company's shareholder base in large part. Myself, still insistent of no abuse. Presenting numbers in support of same. Trading stats., etc.
And in the end? Well, the day came. Massive volume to the buy-side. But no upticking. None.
And?
Management got the ball rolling alright. In line with stated word. To the buy-side. But, unbeknownst to all involved, management having also a massive face value CD in need of burying. The initial buy-side eliciting no end of follow-through from the retail contingent but going absolutely nowhere as the inside continued to unload. CD conversion/issuance/liquidation. No upticking despite the massive buy-side.
The claimed shorting abuse being a complete fantasy. Simply management's way of climbing out from under a financial obligation. Purported squeeze play.
And yet folks were insistent. The whole time. Massive abuse.
Where there was none.
Zip. Zilch. Nada.
Lesson learned.
New rules being in place. Welcome amendments. SEC Rule 3360, etc. Dating back to last year and beyond. The Grandfather provision having been eliminated inclusive. Time for folks to start thinking clearly.
And the 'group'?
And an example. And be forewarned that following the below link will see you reading whatever portion of no end of SPNG nonsense you care to. You and any interested other(s). Manipulation tactics. Greed.
And referencing SPNG...
"I might not have shorted it, but my TIMalert subscribers did and come next week, I’ll be posting over a dozen testimonials from PennyStocking DVD students who profited from this thing, study the required reading materials and you can profit from the next one!"
http://timothysykes.com/blog/2009/06/12/spongetech-delivery-systems-inc.-spng.ob-told-you-so/
Wiki...
http://en.wikipedia.org/wiki/Timothy_Sykes
And, certainly, we don't want to beat the issue to death. Friday's activity. All involved being entirely at liberty to think/believe what each sees fit. Within, hopefully, the confines of indeed thinking clearly. Sidelining any/all self-defeating emotion.
And bearing in mind that the very operating nature of the vast majority of OTC outfits lends itself ideally to reading the worst into the best. It being a relatively easy enough task to twist the numbers, etc, truth to one's own self-serving advantage. With those of us, more experienced, doing our level best to counter the nonsense.
All of it.
Friday's goings-on cementing the need of the NASDAQ. Leaving the OTC behind. Absolutely essential. With the Friday activity seeing stronger hands in. The weak-handed out. All to the good. All to the continued upside. Our coming trading week to see welcome word from the inside on numerous issues. As talked about.
And will we see the additional short side? And sure. Short-term volatility vs. the longer-term trend. But not a repeat of the manipulation. A one-shot deal. Can't happen a second time. Different dynamics. Different level of understanding. So on.
Blatant greed with no regard for others.
Time to move on.
The RM Enterprises connection being all about getting SPNG seriously launched. Self-sustaining operations reality. Management seeking the same level of return as are the rest of us. Building a long-term successful company. And, sure, the RM Enterprises goings-on sees management earning a profit. And, certainly, such is only fair. The value of money after all. The nature of business.
The big picture being the called-for focus with Friday's activity being a blessing in disguise. Clearing the path. Clearing the air.
The continued upside to come. Additional welcome word from the inside in concert.
SPNG = the real deal.
No end of growth/expansion potential. The effect of synergies and economies of scale seeing the company's cash position growing exponentially.
Cash from operations.
Self-sustaining reality.
Green and more green.
PM,
No.
The 'group' entered a flood of orders. Channeled through a single broker-dealer.
Single-source. As anything other and the manipulation wouldn't have executed successfully. Had to be a single source. Otherwise the situation would've been as previously. The sell side. The profit-taking. The buy side. The loading up. Across-the-board activity. Multiple broker-dealers involved. No hint of nefarious intent. A party(ies) exiting. A party(ies) entering/adding. So on.
The plot wholly succeeded. But only by virtue of eliciting a mass MM reaction. MM's seeing the change in order flow. Massive. Single-source. MM's being well-acquainted with the realities of the venue. Being no longer interested in going long. Opening, instead, short positions. A vested financial interest in maximizing the down side.
The charge off the bottom being reflective of the overall sentiment. That all is indeed well. And it is. Lots of clear-thinking folks loading up at lowest possible cost. Taking full advantage. All the way back to $0.17 at the Close.
Our coming trading week poised to see the continuation.
Cooler heads prevailing.
And just chalking it up to experience.
Lesson learned..
While bearing in mind that, in their own way, the events of the day were a blessing in disguise. A temporary lull in the SPNG 'onward and upward' proceedings in exchange for a far greater degree of understanding across-the-board. All involved parties/to-be-involved parties gaining valuable insight into the truth surrounding their SPNG investment/pending investment.
The manipulation. The fallout. A plus/positive in disguise. With market level poised, as a result, to advance at an even greater pace than was the case previously.
And, particularly, following the arrival of the PR.
The one in which management clarifies. Formally setting the record straight. Nothing untoward going on from the inside. No investigation. So on. A management team to be proud of. Being hard at work bringing value to shareholders. Themselves, very much, included. Value of the seriously tangible variety. Getting the job done.
Onward and upward indeed.
And thank you.
And best of luck to you too.
Sometimes, even the sightless can see.
The 'group' having perpetrated today's manipulation is far from alone. The OTC being of a general nature that invites miscreant behaviors. Self-serving antics running rampant. The SEC having finally tightened certain associated rules/regs. More recent times. A groundswell of complaints relating to abusive shorting practices and Form S-8 abuses, etc. having the SEC finally doing some actual biting. As opposed to simply barking. More than 7,000 OTC outfits having been driven to oblivion while the SEC, for decades, did nothing but sit on its proverbial hands. And, indeed, about time the agency started living up to its own mandate of looking after the collective interest of the little guy/gal.
What it's actually all about.
The SPNG story lending itself ideally to the manipulation we witnessed. Couldn't have been more ideal. A story seemingly too good to be true. And come the Conference presentation, the involved 'group' settled on their plot. An OTCBB outfit being debt free? Revenues of worth? Multiple millions? Strong positive cash flows? Net earnings? Multiple millions? Gross margin to smile about? Growth/expansion rate? Shareholder respectful? The rest of it? Too, indeed, good to be true?
The perfect setup. The perfect lead-in.
Slyly contacting the SEC. Dropping a few 'subtle' hints. To good to be true. Inflated numbers. Miscreant management. Manipulation no end. SPNG.
And then making the rounds. Financial message boards. Dropping a few again 'subtle' hints. SPNG innuendo to melodrama.
"Big dump coming!!!"
"SEC investigation!!!"
"Total SCAM!!!"
"SELL, SELL, SELL!!!"
A manipulation perfectly orchestrated. Maximizing profit. The long side and the short side together. The OTC at its ever-lovin' finest.
A manipulation that, again, cannot be repeated. The 'group' unable to load up at lowest possible cost as previously. Different set of dynamics. No repeat. Simply not possible.
The more astute among us having performed the almost always necessary DD. (Momentum plays being a different story. A reacting thing. Not a thinking thing.) Having pored over the filings. Financials. Having satisfied ourselves of management's forthrightness. No history of impropriety. Resumes researched. So on. Everything on the up and up. All being well. Understanding the RM Enterprises connection.
While on the subject of equity application relative to SPNG we have a situation of a means to an end. Taking the company to the next level. A plan to achieve the mentioned 100 plus SKU's. To focus on product development.
And…
'We intend to look to outsource our sales team who will devote their efforts to promoting and selling our products and fostering relationships with distributors who can assist us with getting our products on the shelves of large retailers such as Wal-Mart and Costco.'
'We are making a strong effort to increase the domestic sales in automotive stores, retail stores, home improvement stores, convenience stores, mass markets, catalogs, drug chains, dollar stores and specialty stores. These efforts have resulted in shipments to CVS, Kroger, Ace Hardware, Bashas’, Price Chopper Strauss Auto, Walgreens, and other distributors. In addition, we are participating in numerous local and national trade shows throughout the USA to promote our products in business-to-business as well as business-to-consumer sales events.'
'We have developed new TV Spots in HD (High Definition) mode and for radio spots which began running on March 23, 2009. They support our growing domestic retail efforts and provide product information for our Car Care, Child Care, Home Care and Pet Care cleaning products. We will also continue to seek to promote our products during special events such as the March Madness NCAA basketball tournament, the Westminster Dog Show, and to sponsor regional marketing events with special product offers. In addition, we expanded our Pet Care product line with the introduction of the Pet Bowl Cleaner.'
'Further in March 2009, we further improved our Spongetech website with better graphics and layout, an enhanced investor section and more versatile e-commerce store selling our products.'
'Also, we have expanded our 2009 sponsorship of MLB professional baseball sports teams by entering into agreements with the New York Mets, New York Yankees, and the St. Louis Cardinals (site of the 2009 MLB All-Star game)… .'
'We no longer depend on a few customers for almost all of our sales. For the nine months ended February 28, 2009, six (6) customers, SA Trading Company, Dubai Export Import Company, Fresco Sales Corp, US Asia Trading, New Century Media and Walgreens accounted for 99.4% percent of our sales.'
And...
For the 9 months ended February 29, 2008:
Revenues:
$1.6m
Total operating expenses:
$1.2m
Issuance of common stock for consulting fees, loan payments, advertising, etc.:
$2.1m
For the 9 months ended February 29, 2009:
Revenues:
$31m
Total operating expenses:
$11.5m
Issuance of common stock for consulting fees, loan payments, advertising, etc.:
$9.7m
Yes. Application of equity being necessary. As the company continues to strengthen its operational cash position. It being also necessary to, indeed, understand how RM Enterprises fits into the equation. Equity application story.
And…
'For the nine months ended February 29, 2008, RM Enterprises, a related party, loaned the Company an aggregate of $2,119,238 for operating expenses, for the purchase of the additional infomercial, and the prepayment of inventory aggregating $266,812 and prepaid advertising expenses aggregating $846,975.'
'As of February 29, 2008, the Company issued RM Enterprises an aggregate of 146,854,720 shares of common stock in consideration for the conversion of an aggregate of $2,119,238 in debt or $0.014 per share.'
And...
'On September 5, 2008, the Company announced a share repurchase program. For the period ended February 28, 2009, the Company repurchased 55,824,336 shares of common stock at an average price per share of $0.0308. The Company will repurchase up to 100 million shares of stock under the plan. The repurchase plan will expire after 12 months.'
'Subsequent to the date of the financial statements, the Company cancelled an aggregate of 526,585,544 shares of common stock. The shares originated from the repurchase of common stock of RM Enterprises. This reduces the number of outstanding shares of common stock from 1,249,451,605 to 722,866,061 shares.'
The big picture.
With it being essential that all those posting to this board understand said picture. How RM Enterprises does fit in. Things being not always what they seem at first glance.
SPNG
Everything on the up and up. All being well. As management gets on with getting on. Taking the company to the next level.
Next trading week seeing the continuation of the understandable charge off the bottom.
Back to the business at hand. Managerial focus on a permanent end to the market level gross undervaluation situation.
Back to our $0.2851 High and on to $0.40 plus.
Green and more green.
Sometimes, even the sightless can see.
We got our gap up and we got follow-through. Just as we said we would.
And then?
And, then, the very reason why the NASDAQ push. The OTCBB being what it is. And while SPNG has very much transitioned, the venue itself is always wide open to manipulation. With earlier sessions seeing volatility. Profit-taking. And today the same. But with a very salient, far from subtle, difference. Earlier, the typical. Today, something a tad different indeed. And that difference?
MM's working always on the basis of order flow. Being always aware/cautious of single-source activity. Being well-aware of the general nature of the venue. Ready to profit from the short side. OTCBB companies being all about the application of equity. The raising of needed operating and growth/expansion capital. MM's poised and ready to capitalize always. Today's session seeing a single large holder unloading. Having played the game. The long side coupled with the short side. Profiting maximally. The sudden and massive change in order flow precipitating what it did. MM's playing along. Single-source reality. Never any different.
The OTCBB being ripe for such manipulation. With management being now, more than ever, motivated to achieve the NASDAQ listing. All the more reason to get the job done. ASAP. Today's session, in the absence of said manipulation, would've been golden in light of the PR. That which we talked about. Would've, easily, had our Close of $0.40 plus. The ideal lead-in to next trading week.
And a nonissue it is.
Our strong hands contingent significantly expanded courtesy of the unloading. With SPNG ever-strengthening operationally. It being just a matter of leaving the OTCBB behind. Today's activity representing absolutely nothing in fundamental terms. Other than the latter charge off the bottom. The seeing of the SPNG light. And not going to be repeated. The manipulation being a one-shot deal. And for the simple reason that any single manipulative party won't, ever again, have the opportunity to load up at extremely low levels. Over and done with. The massive upside ahead. Management wholly focused on taking the company to the next level.
What happened, happened. The order flow change. Single-source reality. The fact of MM's and short positioning realities. A vested interest in seeing the continued downside. And now over and done with. Having charged off the bottom. Our registered MM's positioned, once again. for the long side. Onward and upward.
Next trading week holding all the promise, one could ask for, on the industrial strength PR front. Our having (ahem) covered most of the details.
Manipulation and the flighty world of the OTC.
Such being life.
Our being well-acquainted with the SPNG fundamental realities. The fact of fiscal '09 and the $50m plus. The massive positive cash flows. Massive net earnings reality. Gross margin anticipated to grow exponentially over time. The welcome effect of synergies and economies of scale. Headed, over the next 3 to 5 years, to $500m plus in gross revenues.
Risk/reward scenario = no-brainer.
The urgency of a NASDAQ listing = no-brainer.
Short-term volatility vs. the longer-term trend. Reality indeed. A trend now stronger than ever previously. Stronger hands being in. Seeing the light. The big picture. Getting the NASDAQ nod and soaring to dollars. The effect of applicable multiples inclusive. A buy and hold special. The opportunity to manipulate being permanently gone. Market level to never again see sub-penny activity. Massively loading up at lowest possible cost. Setting the stage. The damage over and done with. A little psychological setback. Nothing more.
Next trading week to see $0.40 plus as management continues, and likely enhances, the PR parade. Folks new to the SPNG party continuing to become aware of the longer-term realities. The OTCBB vs. the NASDAQ. Only a matter of time. With management now, absolutely, more motivated than ever to get the job done. ASAP. The fundamental realities of SPNG, both current and future, are such that the Wall St. folks simply can't ignore. Our seeing trading levels commensurate, at the very least, with company true value circumstance as the days progress. Graven in stone. Next trading week being the start of the next leg up.
And many among us noticed the sudden flood of SPNG naysayers on this board, and others, just prior to the unloading. Profiting from both the long and short sides. A particular tout site and minions having played the game. And well. But being unable to do so again. Over and done with. Profit made.
Today being, indeed, a lost opportunity. Would've been golden, and then some, were it not for the greed.
And so be it. Again, over and done with. Tomorrow being the first day of the rest of SPNG's life. Monday seeing the continuation of the charge off the bottom. On to truly fitting trading levels. A permanent end to the being grossly undervalued situation. Fundamentals being what it's all about.
The NASDAQ intent. With management charging full-steam ahead. $500m in gross revenues being the target. Forecast. Today's anticipated PR cementing the reality. With many more of such to come. Numbers and all. A certain grapevine having apprising certain parties among us of the strong likelihood of two PR's arriving. Numbers inclusive.
Focusing where focus need be. The value of a significant SPNG position 3 to 5 years out. Capable, competent management team getting the job done. NASDAQ and dollars reality.
Holding tight.
Short-term volatility vs. the longer-term trend.
Next trading week on the way.
Everyone likes a winner.
And what else would an SPNG shareholder be?
Hmm?
Thanks. And all the best.
Dan...
A need of bearing in mind the big picture. Business plan. Business model. Management's long-term growth/expansion goals. The intent to become a $500m plus company.
And an early investment in Microsoft? Holding through all the splits? The early numbers accretion? And worth how much at the peak? One's position? ROI?
Buying and holding yields. Just a matter (Metter?) of isolating the right target(s). And in SPNG we're talking precisely the right target. The right management team. Capable. Competent. Driven to succeed. Having formulated a golden business plan and model. Shareholder respectful to the nth degree. Routinely honoring fiduciary duties. Couldn't ask for more situation. As good as it ever gets. In the absolute.
With NASDAQ ascension being the key. Unable to achieve the target gross revenues ($500m plus) as an OTCBB. The NASDAQ listing being essential relative to exposure. To analyst coverage. To capital being raised on favorable terms. A whole host of considerations that we'll expand upon later. The time having arrived for SPNG to move to the next level operationally. The NASDAQ push being wholly justified. Wasting neither time nor effort. Getting the job done.
And the beauty of the situation it is.
The listing application being approved seeing market level skyrocketing. Dollars reality. What we earlier discussed. The considerations. Applicable multiples inclusive.
And otherwise?
The buyback being completed. Vaulting market level. As with the first buyback round.
A means to an end.
There were/are some meetings. There being no moss growing on management. Getting the job done indeed. With the primary managerial focus, currently, being market level. A permanent end to the gross undervaluation situation. The primary roadblock to the listing. Our latest PR telling the story. The numbers presentment. Management bolstering the buy-side. Getting the stock to a minimum level that will have the big money acting.
It being easy enough to follow the bouncing ball. Managerial thinking. There being a number of potential catalysts relative to precipitating the breakout we seek. Including word of capital being raised relative to buyback completion. A whole host of potential PR's. The industrial strength variety. My personal thoughts centering on the mentioned meetings. NASDAQ and a large investor(s). My anticipating a PR or two going to, very much, be the catalyst(s) to the truly massive upside. Breakout city! Dollars reality.
The ongoing push to bring market level in line, at the very least, with company true value circumstance is not going to abate. Not even slightly. There being far too much at stake. The NASDAQ listing being absolutely essential. And ASAP.
Our coming session, as talked about, poised to see the serious upside once again. The fundamental and technical, once again, telling the story. Opening gap up and on from there. And very possibly the truly huge upside. As, again, talked about.
Last opportunity to climb aboard before next trading week emerges. What same holds in the way of welcome surprises.
The pps advancement to-date being to wholly smile about, yes, but very much a drop in a bucket compared to what the big picture forecasts.
Market level is just getting started.
And a Close of $0.40 plus?
And stay tuned.
"The trend is your friend."
And thanks.
You're welcome.
And thanks again. You and the rest.
And as for $0.16 - $0.165?
Well, you might have come across my follow-up post…
"Candlesticks never lying… "
Yesterday's technical being an easy enough read (no offense intended). With today's being no less so. Tomorrow's session poised to see another major percentage gain complete with opening gap up. And, very possibly, a breakout situation should we play welcome witness to that second industrial strength PR. The one earlier mentioned via a certain grapevine.
Market level rapidly achieving the goal, from the inside, of a permanent end to being grossly undervalued. With today's early action telling a very noteworthy, very important, story. Our speaking yesterday of chasing activity. With such being exactly what we got. And right out of the gate.
Noting said early action. Volume and all...
http://www.nasdaq.com/aspx/chartingbasics.aspx?intraday=on&timeframe=intra&charttype=ohlc&splits=off&earnings=off&movingaverage=None&lowerstudy=volume&comparison=off&index=&drilldown=off&symbol=SPNG&selected=SPNG
Action that fits the circumstances. Not wanting to miss out on a possible breakout. A breakout the didn't happen today, but it's coming. In the absolute. And tomorrow? Next week?
The early session buying frenzy being representative of the collective mood. A window into just how rapidly market level will advance come the coming breakout.
The frenzy fading but the longer-term trend continuing. Through to the Close. The fence-sitters getting antsier by the minute. With tomorrow's session representing the last opportunity to climb aboard pre-weekend. As we await the arrival of continued formal word. The buyback(s). The NASDAQ. Etc. With management being ultra-anxious, at this point, to leave the OTC behind. To move the company to the next level. Facilitating achieving longer-term goals. The recent Conference attendance having not come in the absence of good reason. Just prior, that is, to the meeting with the NASDAQ folks.
Far more than mere coincidence. And serving more than one purpose. A feeling-out of the institutional folks inclusive. Business plan and model well-received? And, again, we have that initial Q&A exchange to consider. The one earlier talked about. The obviousness. And when the due diligence is completed? And in line with our ever-ascending pps? We'll have the big money joining retail. And breakout city it will be.
None of it being rocket science.
Total no-brainer.
Our coming session harboring very realistic potential to see the truly massive upside. As, in light of this week's steady indeed advancement, it would be extremely prudent of management to grace the wires with industrial strength formal word.
The perfect finish to the perfect week.
The NASDAQ being in SPNG's future. And at that point we're talking the serious institutional, worthwhile analysts, so on and an initial earnings multiple in the 19x area.
Total no-brainer.
A buy and hold special.
Couldn't be simpler.
The longs' paper gains ever-mounting. Longer-term trend reality. With the short-term volatility being par for the course. Company's shareholder base in constant flux.
What it's all about.
Onward and upward.
You and the rest are very welcome.
And thank you.
Happy I can help.
With SPNG proving up precisely as anticipated. Capable/competent management team having formulated a business plan and model to be truly proud of. A once in a lifetime opportunity.
Fundamental soundness. And achieved with uncommon timeliness. Financials reflecting the excellence of the company's management team. A management team pressing, for all they are collectively worth, to take the company and its shareholder base to the next level. Achieving ascendance to the NASDAQ. NCM. Opening the door to the longer-term pursuits. Managerial goal of a $500m company and greater.
The fundamental telling the welcome story.
And no less the technical.
Tomorrow's session poised for significant gain. Major move up. Candlesticks never lying...
http://stockcharts.com/h-sc/ui?s=SPNG&p=D&yr=0&mn=3&dy=0&id=p39652404933
In SPNG we, all of us, stepped in something good.
As good as it ever gets.
Our having collectively harbored high expectations for this trading week. With same coming to fruition ever so nicely. Across-the-board.
Steady advancement on all levels with no looking back.
And gotta love it.
For sure and for certain.
And thanks again.
PM,
Thank you.
And the short answer?
Affirmative.
It's an unfortunate fact that there's no end of mis/disinformation routinely posted on these boards. And, thus, the primary reason why I, for one, always take the time/trouble to fully explain the reasoning behind my more general musings. Avoiding, always, the baseless blanket statement(s) routine. A routine that helps no one. Explaining at length instead. Being as helpful as possible to the neophytes among us. Those less experienced. And, so, again yes. Institutional monies do routinely flow to the OTC. A situation that gained significant traction following the dot-com collapse of 2001.
And as an aside…
The OTC plays host, primarily, to startup/development stage companies. Those in the throes of establishing worthwhile operations. But, also, the OTC plays host to no shortage of fully operating companies. Companies such as SPNG. All the right numbers inclusive of growth/expansion realities.
And a few telling examples of Institutional Holdings relative to OTCBB companies:
NEPH (Close of $1.20)...
http://www.nasdaq.com/asp/holdings.asp?symbol=NEPH&selected=NEPH&FormType=Institutional
ADLS (Close of $0.77)...
http://www.nasdaq.com/asp/holdings.asp?symbol=ADLS&symbol=NEPH&selected=ADLS&FormType=Institutional
EPIX (Close of $0.1750)...
http://www.nasdaq.com/asp/holdings.asp?symbol=EPIX&symbol=PUDC&symbol=CTHP&symbol=CPTC&symbol=NGHI&symbol=NGLPF&symbol=DNRR&symbol=GWSC&symbol=GCHK&symbol=ADLS&symbol=NEPH&selected=EPIX&FormType=Institutional
SPNG (Close of $0.1711)...
http://www.nasdaq.com/asp/holdings.asp?symbol=SPNG&selected=SPNG&FormType=Institutional
It being a good idea to retain the SPNG link. Watching closely for updates. As, they're coming.
And as for abusive shorting yet again. Been there, done that. Trading pattern doesn't support it. Neither company fundamentals. And, certainly, I'd be more than willing to read a well thought-out presentment(s) in support of the issue re SPNG provided by any willing party(ies). Discussing the matter further. Though, again, it's a simple enough matter for management to direct company legal and accounting to pursue the issue as earlier outlined. Via NOBO and the DTCC.
Today's session seeing resistance thrice broken. Close near HOD. Tomorrow, the continuation. The pps appreciation, the trend, developing into a chase situation. Building to breakout as the institutional folks get more antsy about getting in. There coming a point, both at market level and fundamentally (PR parade), when all hell will, absoutely, break loose. And will we see $0.40 plus by week's end? As talked about? It'll be close, at the very least. The results of meetings attended by management to come. Etc. Next trading week holding no end of positive formal word potential that folks, in general, will be anxious about. Across the gamut.
Friday's Close to see the High for the week. A steady rise to that point. With the near-term upside potential being unlimited in light, indeed, of the very strong possibility of continued industrial strength PR's hitting the wires.
Breakout city!
With our knowing about the company's $3m in cash. The current situation as per Mr. Metter. With cash being required for ongoing operations and continued growth/expansion. But how about the completion of the buyback(s)? What there? And raise, perhaps, a little capital from a large investor(s)? Third party(ies)? Get the buyback(s) done? Completed? Market level soaring? The company taking on a little debt in exchange for assistance with the NASDAQ nod situation?
No shortage of possibilities to give thought to. To consider.
The OTC typical being run/retrace. Long on the way up. Short on the way down. MM's being empowered to go long or short at will. Within the limits of buying power. With SPNG far advanced, at this juncture, from the OTC typical. No looking back. No longer in the hands of the day traders. A company transformed. Registered MM's getting the picture. Poised for the long side. Being well aware of the realities.
A risk/reward scenario to be not ignored. Not by any astute investor/trader anywhere.
Our steadily ascending pps eliciting ever-increasing institutional interest. And, particularly, courtesy of the recent Conference presentation/pitch. With said institutional interest being, understandably, still in the throes of the called-for SPNG due diligence. And when same is completed? Satisfied with the caliber of management? Capability/competence? The realism of the numbers? The true potential? Long-term? ROI reality?
And it IS coming.
The big money!
En masse.
Breakout city!
Massive ROI.
The balance of our trading week to see green to truly smile about. Breaking any/all resistance with ease as the weekend closes in. Chasers aplenty.
Nowhere to go but up.
Total no-brainer situation.
And thanking you again.
Always a pleasure.
Thank you.
Much appreciated.
Salty,
We'll start with the buyback situation. And is such happening via the open market?
Well...
'In July 2008, RM Enterprises International, Inc., a company that is our majority stockholder and which is controlled by our officers and directors, agreed to grant the Company the right, exercisable by the Company at any time on or prior to February 28, 2010, to repurchase all or any portion of the 267,154,132 shares issued that RM Enterprises International, Inc. had purchased from the Company since January 1, 2008 at the original price paid by RM Enterprises International, Inc. to the Company for such shares, or an aggregate of $4,918,432.46 for all of such shares. Such shares were issued in tranches at the time of each of the advances of funds to the Company at a 40% discount from the market price on the date of each such advance. The average per share issuance price for the shares was $0.0184.'
And...
'Subsequent to the date of the financial statements, the Company cancelled an aggregate of 526,585,544 shares of common stock. The shares originated from the repurchase of common stock of RM Enterprises. This reduces the number of outstanding shares of common stock from 1,249,451,605 to 722,866,061 shares.'
Boiled down to its most simple, we have a Catch-22 situation. Unable to achieve a NASDAQ listing in the absence of meeting the minimum Bid price requirement. Unable to achieve said minimum Bid price via the retail contingent alone. Institutional parties being loathe to jump in en-masse in the absence of the company being listed or being approved to be so.
And again…
(Mr. Moskowitz regarding the "buyback".)
"That was one of the things that really helped our stock price going up in the last month. By doing the buyback."
And complete the buyback(s) as outlined above? And market level ascends to… ?
Unknown in general terms. But in true value terms it could be figured out. And we're talking significant.
The primary point…
Attend the Thursday meeting with the NASDAQ folks. Paint the share structure picture. Completed buyback(s) yielding additional pps appreciation. Paint the fundamental picture. Cementing the realities. Listing requirements largely met as of this writing.
Difficult economic circumstances overall has the relevant Listing Council willing to listen/to make concessions. As it has. Numerous listed companies trading below $1.00 being treated with patience and understanding. The economy gradually recovering courtesy of an astute White House.
In SPNG we're talking about a company resistant to the economic downturn. A company growing/expanding rapidly. An operationally successful company. A company the NCM would be proud to host.
The relevant council willing to listen to what makes sense. And, so, make the case for no stock consolidation. The path of least resistance in achieving a listing. Shareholder respect instead.
Complete the buyback(s) and market level will react once again. And significantly so. And if not sufficiently so? Well, again, appeal to the collective common sense of the Council. Make a deal. The NCM gaining a worthwhile component in SPNG. And in so doing, the institutional folks are "In Like Flint".
And voila!
A pps to smile about. All parties happy/satisfied.
Things are humming along. Today's PR cementing the fact of management being intent upon seriously moving market level. The PR parade to continue. Bringing in the institutional folks little by little.
The Thursday meeting being but hours away.
We shall see.
Getting the NASDAQ nod will send market level into orbit. Getting the listing application approved.
And once official word is provided, the process includes symbol reservation, three business days' notice prior to trading commencement desires, provision of certain documentation involving registration of securities, etc. Happens quickly since SPNG is already a fully reporting entity.
And what an entity.
Cash cow situation. Business model of the century. Our talking not only massive revenues but massive cash flows and net earnings. Plus the expectation of gross margin expanding in line with revenues and earnings accretion. The impact of synergies and economies of scale realities. We're talking the opportunity of a lifetime. Golden ground floor opportunity. Second to none. As good as it ever gets.
Empty revenues being the OTC usual. And where the value in, say, $10m in period gross revenues relative to $15m in expenses in generating same?
A little perspective going a long way.
Revenues of worth being one thing but in the case of SPNG we're talking truly huge cash flows and net earnings additionally. Not just a 'squeaking by' situation.
Management succeeds in getting the NASDAQ nod and market level, courtesy of en masse institutional interest, will be $6.00 plus. Applicable earnings multiple inclusive.
Only, indeed, a complete fool would exit at this point. Or, if not yet a shareholder, continue to sit on the fence.
And, certainly, management hosts extraordinary salesmanship skills. Very impressive. Small wonder that the company has grown/expanded as it has. Is as successful as it is. Retail space and all.
Products with mass appeal. From discount shops to the biggest retail chains.
Huge ground floor opportunity.
Before all hell breaks loose. The market level breakout we've referenced.
One way or another management will see the company listed. And this Thursday?
Well, here it is again…
(May 7th, 2009)
'SPNG ..., announced today that its Board of Directors has voted to seek a listing for SpongeTech(R)'s common stock on the NASDAQ Capital Market. As part of this process, SpongeTech(R) will prepare and submit an application for a NASDAQ Capital Market listing. In addition, SpongeTech(R) will undertake the corporate actions necessary for SpongeTech(R) to meet the quantitative and qualitative requirements for the listing application to be approved. SpongeTech(R) currently meets most of the financial listing requirements with the exception of stock price.'
[ meets most of the financial listing requirements with the exception of stock price ]
And management? The salesmanship? The ability/capacity to get the job done? Approval, in and of itself, getting the pps appreciation job done?
Well, we talked about it.
Little more patience and we'll know.
But it WILL happen. One way or another. And when it does?
Smiles all around.
Massive ROI.
A little extra effort being needed.
But don't count on it.
Management having already made the fundamental points.
Stay tuned.
Rook,
No.
And thanks.
And PM received.
Earlier, we spoke of a certain grapevine and the very strong likelihood that our current trading week would play host to an industrial strength PR or two. Numbers inclusive. And voila! Projections and guidance. The shrewdness/astuteness continuing. Leveraging all. The arrival of the PR cementing the fact of management, as talked about, being on the ball. Being not about to squander a golden opportunity. Doing all they can to bolster the buy-side. NASDAQ considerations and all.
And the Conference?
Awesome!
And we'll elaborate a wee bit...
Fiscal '07 gross revenues of approx. $67k.
Fiscal '08 gross revenues of approx. $5.2m.
Fiscal '09 gross revenues in excess of $50m.
The growth rate expected to continue over the next 3-5 years as the company ramps up its product line to over 100 SKUs. And awesome indeed.
Company is debt-free.
Clean balance sheet.
Current cash of approx. $3m.
Gross profit margin expected to grow exponentially.
Product reorders continuing.
Etc.
Awesome again.
Sponges can be made as thin as 1/16 inch. Facilitating medical application. Huge potential market. Awesome yet again.
And the "grand slam" from Mr. Metter...
The fact of no dirt getting into the sponges. Huge selling point.
And two overriding considerations...
1_
When the Q&A began, we got exactly what we wanted and needed to hear. The initial set of questions, posed, asking about NDA's (Nondisclosure Agreements), patents and trademarks.
And why so important?
And because the focus meant that the company's presentation/pitch had succeeded. The audience being drawn to the numbers/potential numbers but wanting and needing assurance that said numbers were protected from competitive influence. And they are. In every way called for. The institutional folks being particularly sensitive given overall economic circumstances. And I, for one, was smiling broadly as I listening to that initial Q&A exchange. For I knew exactly what it meant. Money in the bank. Awesome indeed.
SPNG is on the big money radar more than ever previously. Inclusive of those free samples being grabbed up. Speaking for itself.
2_
We have the following passage from Mr. Moskowitz regarding the "buyback"...
"That was one of the things that really helped our stock price going up in the last month. By doing the buyback."
And speaks (ahem) volumes. And ties in with the NASDAQ meeting set for Thursday. My personal take being that management is going to press home the point that with an additional massive buyback(s), coupled with the fact of the company's fundamentals far and away meeting the NCM's initial listing requirements as of this writing, that the very act of SPNG being approved for a NASDAQ listing will, in and of itself, be the primary catalyst to the pps issue. Situation resolving itself. And an excellent argument it is. With major monies climbing on board at that point. Market level skyrocketing. Vaulting to dollars. No end of SPNG millionaires.
Going to be an interesting week for sure.
And continuing…
"Haven't even scratched the surface."
Mr. Metter getting the business plan/model point across. Growth/expansion potential. Global reality. International market. SPNG poised to give P&G a run for its money. Becoming a $500m company in 3 to 5 years. Continued TV branding of 'SpongeTech' inclusive.
And, certainly, it would be a hugely shrewd/astute move by management to provide shareholders with the talked about post-Conference PR. Providing detail regarding reaction to the presentation/pitch above and beyond the aforementioned. The Q&A. Would go a long way.
And on the subject of abusive shorting?
I had my say in an earlier post. Referencing certain facts inclusive of NASD Rule 3360 amendments. No shorting abuse. And, certainly, management could determine the facts courtesy of a comparison of the company's NOBO (Non-Objecting Beneficial Ownership) list with the relevant DTCC trading/clearing detail. Not rocket science. Simple enough.
The overall bottom line being that securing the senior listing is the crux at this juncture. Ascending to the NASDAQ. Approval. Market level poised to skyrocket. The current trading activity being entirely dismissible. A little cooperation from the NASDAQ folks and SPNG becomes transformed in a way that's going to put ear-to-ear grins across the collective face of the company's shareholder base.
NASDAQ being the key. Securing the approval. A market level explosion waiting to happen. Dollars reality.
And as we await additional formal word we'll see the longer-term trend contine. The upside.
And as for the TA being gagged?
Not a mystery. The buybacks/retirements/cancelations call for the filing of certain documents with the relevant SoS (Secretary of State). The company's TA being not able to keep up in terms of latest actual detail. And, thus, the quiet. Nothing to be concerned about.
Going to be hugely interesting from here on out. But, for sure and for certain, market level is headed seriously north. Dollars in the absolute.
We now wait for formal word about the scheduled NASDAQ meeting outcome. See if the NASDAQ folks see the logic of management's likely argument. Approval being needed. Simple logic. And the relevant Listing Council has already extended the temporary suspension of certain continued listing rules/regs. regarding minimum pps. Difficult times after all. A Council willing to listen.
SPNG, at the current cost of admission, amounting to the no-brainer of the century.
No two ways about it.
Dollars waiting to happen.
Only a complete fool would exit at this point.
Plain and simple.
And thanks again.
A company's filings represents the source to go to for certain and specific detail...
'In July 2008, RM Enterprises International, Inc., a company that is our majority stockholder and which is controlled by our officers and directors, agreed to grant the Company the right, exercisable by the Company at any time on or prior to February 28, 2010, to repurchase all or any portion of the 267,154,132 shares issued that RM Enterprises International, Inc. had purchased from the Company since January 1, 2008 at the original price paid by RM Enterprises International, Inc. to the Company for such shares, or an aggregate of $4,918,432.46 for all of such shares. Such shares were issued in tranches at the time of each of the advances of funds to the Company at a 40% discount from the market price on the date of each such advance. The average per share issuance price for the shares was $0.0184.'
More detail in the filings.
Value/valuation being what it's always all about. Current value and future value taken together. At least where companies are listed. When we're talking fully operating status. Different story for neophyte startup/development stage outfits. Having yet to establish worthwhile operations. Tough row to hoe.
Numbers being the always key. Forward periods realities. Projections. Guidance. And, thus, the momentum. The trend. Short-term volatility aside. SPNG management being on a mission to bring seriously tangible value to shareholders. Themselves, very much, inclusive. To see a permanent end to being grossly undervalued at market level. And kudos on the flawless execution. On the ongoing growth/expansion.
SPNG current cost of admission amounting to a no-brainer.
Plain and simple.
Risk/reward bliss.
And still there are those in routine attendance among us unable to get past the trees to the forest. Failing to see that which management sees. But soon they will. Message finally sinking in. A company transformed. Market level to see $0.40 plus this trading week and much higher over ensuing sessions. Fun and frolics. Laughing all the way to that proverbial bank.
Having reaching/achieving breakout volume/velocity.
Market level's unyielding advance inviting greater and greater attention from the big money. The coming session poised to see an industrial strength PR. Post-Conference. Complete with the understandable green. The whole idea behind the presentation. Bringing in the big money. Getting the market level festivities underway in earnest.
"NASDAQ here we come!"
None of it being rocket science even slightly.
A buy and hold special.
Couldn't be simpler.
Distilled down to its most basic.
The OTC typical being a permanent thing of the past for SPNG. And good luck to the day traders. May they succeed elsewhere.
All involved, soon indeed, getting the message.
Green and more green.
"The trend is your friend."
Gotta love it.
PM,
Thank you.
Kind words appreciated.
And "SM"?
While on the subject of SPNG? We're talking made in the shade. The longer-term trend being set. And there's no bucking said trend. And of course…
"The trend is your friend."
Fretting over short-term volatility being the pursuit of the foolish. Ever-present profit-taking being the reality it is. Name of the game.
Management having proved up on virtually all fronts to date. Deserving of tremendous credit in achieving what they have. The obvious excellence of the company's business plan. The obvious excellence of the company's business model. Execution to be proud of. Credit where it's due.
Shareholders needing only to sit back and relax. Watching it all unfold.
As trading levels well in advance of $1.00 emerge over coming sessions. Management forging on. Leveraging all. Company long-term goals considered.
Our post-Conference PR to come. And much additional. Numbers and all.
Onward and upward.
Green and more green.
And best regards to you also.
You and yours.
There are certain distinct differences between the NASDAQ Capital Market and the AMEX in terms of initial listing requirements. Ascension to the NAZ calling for greater stringency. With the NAZ being the, by far, superior venue from all angles. Everything considered. Exposure. Liquidity. Analyst attention. Capital raising. On and on.
SPNG management having already stated the fact of the company, as of this writing, meeting the vast majority of the referenced requirements with the exception, primarily, of pps circumstance. A circumstance that is, very much, taking care of itself with each passing trading session. And will continue to do so as management continues the shrewd maneuvering. PR parade. A whole host of astute moves designed to achieve the senior listing ASAP. Company longer-term goals considered.
In SPNG we're talking not only a shrewd/astute management team but a shareholder respectful such. It having already been plainly stated, from the inside, that the means of achieving the sought-after listing involves no stock consolidation. Not even a minor magnitude one, such as one for five. The means involving, instead, just what we've played welcome witness to to-date. Combined with continued retirements/cancelations and buybacks. Continued rapid growth/expansion combined with reducing the Outstanding stock count significantly in shareholder respectful ways.
SPNG at the current cost of admission = no-brainer.
A buy and hold special. Ignoring any/all short-term volatility in favor of the longer-term trend. The company having smilingly transitioned. Being no longer in the hands of the day traders.
This week. Next The following. So on. As the big money continues to get the SPNG message and market level soars to $1.00 plus. Our current trading week poised to see $0.40 plus as the buy-side volume continues toward breakout velocity. As management gets on with getting on. Leveraging all. Displaying shrewdness/astuteness no end.
Today's session representing, as expected, our single greatest EOD percentage gain of the recent run-up.
With huge advancement, upon same, to come as all involved get with the program. No longer the OTC typical. A company transformed.
A business plan and model to smile about.
A management team to smile about.
As plain and simple as one can make it.
Green and more green.
On the way.
Today's session having seen many of the weaker-handed out. Paving the way for more forward thinking folks to join the party. The stronger-handed, more capable of separating out the short-term volatility from the longer-term trend.
Tomorrow's session representing a watershed moment.
And…
'Noble Financial supports emerging growth companies through strategic advice, investment banking, market-making, sales & trading, comprehensive equity research, and the development of institutional support.'
[ development of institutional support ]
"As we begin our 2010 fiscal year, this conference give us the opportunity to present our Company to many portfolio managers, analysts and potential investors and to share our growth strategy and recent achievements."
[ growth strategy and recent achievements ]
With our having spoken of SPNG's obvious resistance to the current global economic downturn. The type of compelling risk/reward scenario being sought by the Conference attendees.
Development of institutional support. The big money folks. Management speaking of growth strategy and of recent achievements. Exactly and precisely that which said big money wants and needs to hear about. Our having already spoken on the subject of forward periods realities. What it is that routinely feeds that proverbial bulldog. Driving the serious buy-side.
True value circumstance. The always combination of current and future value.
What it's, absolutely, all about.
SPNG defined. Exceptional growth/expansion. The future wide open.
Buy & Hold!
Major league green ahead.
Making some, truly, serious bank.
Profit-taking can always be expected. And particularly at basement level under circumstances such as the significant upside that SPNG has seen of late.
The OTC hosts its own set of unique dynamics seen nowhere else. And it's understandable that certain involved parties are most always of the weak-handed variety. Those who react quickly to certain L2 changes. Certain MM's more than willing to play along. Maximizing profits. Other third party entities more than willing to attempt the short side. Certain MM's more than willing to play along. Maximizing profits.
SPNG has transitioned. No longer is market level in the hands of the day traders. Whole new ballgame in welcome evidence. And, certainly, the inevitable profit-taking. Inescapable. And entirely dismissible relative to the SPNG big picture.
Today's PR setting the stage for the significant pps advancement to come throughout the balance of our trading week. As talked about.
And…
'SPNG ... is pleased to announced that the Company will be presenting at Noble Financial's Fifth Annual Investor Conference, a two day conference from June 8-9, 2009, at the Hard Rock Hotel in Hollywood, Florida. SpongeTech(R)'s CEO, Michael Metter, and COO, Steven Moskowitz are scheduled to present SpongeTech(R), America's Cleaning Company(TM), at 9:15 am EST, Monday June 8, 2009 and will host a question and answer session after the presentation.
Noble Financial is a privately-held, full-service capital markets firm focused on converting market inefficiencies into profit opportunities. Noble Financial supports emerging growth companies through strategic advice, investment banking, market-making, sales & trading, comprehensive equity research, and the development of institutional support. 140 public companies are expected to participate in this year's event.
SpongeTech(R)'s COO Steven Moskowitz said, "As we begin our 2010 fiscal year, this conference give us the opportunity to present our Company to many portfolio managers, analysts and potential investors and to share our growth strategy and recent achievements."'
[ the opportunity to present our Company to many portfolio managers, analysts and potential investors ]
And we spoke of the likelihood of a near-term industrial strength PR or two and such are on the way.
Today's session to Close strong in anticipation. Tomorrow's session to see the very significant upside as management fully leverages a golden opportunity.
Exciting week ahead.
Numbers and all.
SPNG = Buy & Hold!
Couldn't be simpler.
The same way an early investment in Microsoft saw the more patient holders reap multiple million$.
Onward and upward.
Indeed.
And thanks. And I'll do my best.
As for the answer to your question...
Entirely dependent upon company fundamentals. Updated share structure numbers. Revenues projections. Earnings guidance. NASDAQ listing status. So on. Overall circumstance, as we approach the quarter you reference, will facilitate making a worthwhile guesstimate. The crux at the moment being our coming trading week. A week being an easy enough read. Significant opening gap up with no looking back. Stronger as the sessions progress. Just as with last week. Trading levels well in advance of $0.40 being in evidence as the week's activity closes out.
The grapevine having it that there will be at least two industrial strength PR's released. Numbers inclusive. Another week of solid green as the big money understandably continues to climb on board. And once SPNG achieves a senior listing, we'll be talking about the effect of applicable multiples. Different story until then.
Getting out of the basement, moving upstairs, presents a whole 'nother ballgame. One hosting an entirely different set of dynamics. All of that which routinely drives the serious buy-side at basement level being far different from that which precipitates worthwhile green where companies are listed. And SPNG is now in that middle ground between the two. Still quoted but headed for a listing with significant/tangible operational advancement in evidence. The type of advancement that draws the attention of the big money folks. That which, again, transforms the company.
SPNG being, now, all about fundamentals. And, sure, we could get into Technical Analysis. Into candlesticks in general and Marubozu's, etc. in particular and the rest of it. But, at this juncture, it's all about an accumulation to breakout situation. Achieving breakout velocity/volume. The coming trading week poised to see just that. With no looking back.
All in attendance seeing the light at that point. Trading levels to truly smile about.
SPNG management isn't about to mindlessly squander what last trading week began. An unparalleled opportunity to see market level advance in line with the NASDAQ intent. Management will proceed in concert with the upside. Continuing to provide the buy-side impetus. Total no-brainer situation. Couldn't be an easier read. Shrewdness no end.
The continuation of the big money entering yielding the sought-after breakout. Trading levels in line with company true value circumstance. At the very least. With said value advancing rapidly. A company resistant to the current economic downturn. Exactly as talked about. Risk/reward.
Time to focus on the near-term. On achieving trading levels in line with successfully achieving a senior listing. The shareholder respectful way.
Forward periods realities, at that point, being a no-brainer.
Seriously green trading week ahead.
Money in the bank.
Mike/Jim...
You're welcome.
And thank you.
Thanks.
It's pleasing to note that folks find value.
The SPNG reality being that at the current approx. $0.10 price of admission we have a plain and simple no-brainer situation. A post-transformation golden ground floor opportunity. That which a number of parties in attendance among us still fail to grasp. But very soon will.
What SPNG management has recently accomplished in cash flow terms amounts to the Holy Grail for any for-profit startup/development stage company. Private sector or public. We're talking huge achievement. Major operational turning point. Self-sustaining cash flows from operations. Self-sustaining in terms of ongoing operations. Growth/expansion, both organic and external, calling understandably for capital infusion.
A company transformed. Fully operating status. Huge achievement.
And, thus, a whole new perspective. No longer the OTC typical, as talked about. No longer a matter of the trademark profiteering antics of any OTC company's registered MM's. The usual ... long on the way up … short on the way down … routine. Trader's paradise reality. While on the purported abusive shorting front? Not happening. Trading pattern doesn't support any such. Neither does the fundamental perspective. Not to mention the fact of NASD Rule 3360 having undergone several recent amendments amounting to mandatory across-the-board short interest reporting on a bi-weekly basis. All OTC securities.
Our having witnessed a significant spike, in 10-Day Average Volume terms, precisely in line with the post-March run-up. Numbers that fit the overall scenario precisely. Peaking, for example, in early April as a resistance point was hit. And again in the mid-May area as yet another resistance point was hit. And again as of last trading week. And because yet another resistance point was hit? And not hardly. The trading volume having spiked, in line with significantly higher trading levels, as a result of 'big money' entering the picture. Big money that will continue to massively enter as of the start of our coming trading week.
It being necessary to see the big picture and to see it clearly. The transformation. No longer a matter of the OTC typical. Whole new ballgame in welcome evidence. Inclusive of MM perspective. Precisely in line with company operational advancement and the stated NASDAQ intent. Being done the right way. The shareholder respectful way. The view from management's perspective. A business plan and model of obvious combined excellence as to readily invite the welcome attention of the big money. Far from the OTC typical.
And we've already spoken of the impact of worthwhile analysts relative to achieving a senior listing. Analysts such as those going to be attending the upcoming Conference. Analysts seeking compelling risk/reward opportunities during trying economic times on a global scale. Companies such as SPNG being targeted. Companies proving to be resistant to the overall economic downturn.
Post-transformation golden ground floor opportunity.
As plain and simple as one can make it.
Those parties in attendance among us still viewing the situation in OTC typical terms are in for a major wakeup call. A major wakeup call coming this week. Starting from the Open. Major gap up with no looking back as the big money, extremely understandably, continues to do its thing. Big money seeking compelling risk/reward opportunities such as SPNG.
All in attendance very soon to get with the program. Seeing the light. The big picture. The view from the inside. NASDAQ intent and all.
SPNG trading levels well in advance of $0.40 will be in evidence over the next five trading sessions.
Watch and learn.
And thanks again.
A 22 second gap between your "Pool of Crystal" post and mine.
Good luck with Monday's opening gap up.
A week for the chasers among us.
And where would we be without 'em?
Hmm?
SPNG
Spongetech Delivery Systems, Inc.
With management delivering in more ways than one. Big time!
And referencing this past trading week...
(Monday)
Close of $0.0384
(Tuesday)
Open of $0.0394 / Close of $0.0440
(Wednesday)
Open of $0.0480 / Close of $0.0564
(Thursday)
Open of $0.0595 / Close of $0.0755
(Friday)
Open of $0.0838 / Close of $0.1001
The opening gaps telling the story. Anticipation. MM positioning in line with order flow. That which they see. With -- in light of this board's general SPNG message and that of other such boards -- Monday seeing the widest opening gap to date. And nothing but continued strength from that point forward.
The beauty of the situation being that we have numbers presentment in concert with the NASDAQ intent. Together, thankfully, factoring the day traders out of the equation. A fundamental play with revenues projections and earnings guidance painting a wholly welcoming picture. Management seeing to it that market level, at the very least, reflects in a manner commensurate with company true value. And in the absence of wasted time and ongoingly. The NASDAQ awaits.
Those parties among us failing to see the light will soon enough get the message. As last trading week's serious upside is seriously advanced upon with no looking back. Management being on a roll with no chance of letup. A case of accumulation to breakout. The point at which we see $0.40 to $0.50 and higher. This coming trading week holding great promise. A permanent end to being grossly undervalued. True value to be reflected. At the very least.
And with reference to the upcoming Conference...
'Next week, Noble Financial will showcase 120 emerging growth companies at The Seminole Hard Rock Hotel in Hollywood, Florida - seven minutes from the Fort Lauderdale International Airport. Many of these companies are misunderstood or under-covered. Others may be orphaned or simply undiscovered. Some are a little more recognizable. But all have an interesting product or position in the marketplace.'
[ Many of these companies are misunderstood or under-covered. Others may be orphaned or simply undiscovered. ]
Another major turning point as management smartly draws the attention of the big boys and girls. The big money! And, thus, the reason why this coming trading week holds the tremendous promise it does regarding the continued serious upside. Accumulation to breakout. The big money about to get the SPNG message. NASDAQ intent and all. The institutional folks about to join the market level party. Breakout city!
Some truly shrewd individuals at the helm of SPNG. Knowing well what it is they do. Making all the right moves. Missing not a beat. Our latest Close of approx. $0.10 being the least of it. A drop in a bucket compared to the coming green. With no looking back. Truly shrewd handling of the situation. Near-term $0.80 plus being a virtual done deal. True value. The always combination of current and future value. What it's, absolutely, all about. Time for all involved to be getting with the program. Seeing the light. The big picture. The one that management sees. NASDAQ and all.
Onward and upward.
March represented the turning point. Market level coming off the bottom in concert with the PR parade. Starting with the March 5th Letter to Shareholders. And on to actual numbers presentment. Revenues. Cash flow from operations. Net earnings. So on. And from that Letter to Shareholders…
1_
Despite what many consider today's environment to be a worldwide economic slowdown, the sales momentum of SpongeTech(R)'s products has continued to remain strong.
2_
We anticipate meeting or exceeding our previously announced projected revenues and earnings for the current fiscal year ending May 31, 2009.
3_
We last updated the Company's capital structure to you on February 2, 2009 and at that time we had approximately 700,000,000 issued and outstanding shares of which RM Enterprises held approximately 480,000,000 shares. These shares held by RM Enterprises are (R144) restricted common shares of stock which legally can be bought back by only the Company itself. We have and will continue to retire as needed the remaining restricted shares held by RM Enterprises.
4_
We are proud to announce that our Company is now cash flow positive and can finance our immediate growth from the cash generated within.
And on May 7th came the formal word of NASDAQ intent. Clearly stated intent that transformed SPNG. Whole new ballgame in evidence. With market level reflecting accordingly. No longer a case of the OTC typical. Of ongoing shareholders' deficit. Of empty revenues. Of cash burn. Of loss carryovers. So on. Trader's paradise reality.
It being now a matter of the operationally self-sustaining. Of fully operating status. A matter of value/valuation. And, thus, the reason why the sustained upside from the March lows. SPNG having transitioned in the most welcome of ways. No longer a matter of trading. A matter, now, of an actual investment. Full managerial intent being an easy enough read. NASDAQ ascension inclusive.
SPNG is no longer in the hands of the day traders. The company's registered MM's positioned for the long side. Not the short side. No looking back as management continues the obvious. A permanent end to being grossly undervalued at market level. A matter of value/valuation. Of true value. Current value and future value taken together. And from the May 7th PR…
'There can be no assurance that SpongeTech(R) will meet the NASDAQ Capital Market initial listing requirements, including, but not limited to a minimum bid price for SpongeTech(R)'s common stock.'
[ including, but not limited to a minimum bid price ]
It being patently obvious what exactly the market level objective is. The means. Not a matter of a consolidation. A matter, instead, of share structure and operational realities. Achieving a senior listing the right way. Making every effort. And kudos.
Going to be no shortage of SPNG millionaires.
The company being no longer a technical/trader's paradise play. Now it's all about fundamentals. A full and welcome transitioning with additional numbers presentment on the way.
Numbers building upon those that brought us off our March lows. Numbers presentment being the always answer. That which routinely drives the serious buy-side. Forward periods realties. That which truly counts. Revenues. Cash flows from operations. Net earnings. The related rest. All that it took to light a serious fire under market level.
Management poised to precipitate a pps commensurate with company true value circumstance. Achieving a senior listing. Making every effort.
Certain parties in attendance among us needing to get with the program. Seeing what it is that's transpired. Welcome transformation. Whole new ballgame. Time to go long. Making an actual investment. A fitting venue on the way. The welcome attention of worthwhile analysts. Much welcome else.
Continued accumulation yielding breakout with no looking back. Value/valuation reality. Shareholder respectful management getting the market level job done the right way.
When trading fits. It fits. When an actual investment fits. It fits.
Long perspective.
Plain and simple.
This one's headed to near-term trading levels far in advance of our latest Close of approx. $0.10. No two ways about it.
A little number crunching. A little close attention to detail. The big picture emerges.
Management continuing to step up to the plate.
Seriously green trading week ahead.
And on from there.
The smartest recent maneuvering by management has been the clearly delineated intent to seek a senior listing. A more than welcome turn of events that serves more than well on numerous fronts. Not the least of which is to pull that proverbial rug out from under those ever-present tout sites and their day trader minions. The reason why the longs among us can look forward to the continued upside. To the absence of any significant pullback. Any sustained retrace. No such.
Management knowing well what it is they do. Getting the job done. Bringing value. Themselves, very much, inclusive. Projections and guidance being the always answer. What it is feeds that proverbial bulldog. Forward periods realties. Numbers. Bottom line realities. Complete with the fact of raw share structure numbers representing never the whole story. Only a base from which to start. Getting down to actual tradable float numbers. The central point. The crux. Liquidity considerations inclusive.
Our latest Closing price of approx. $0.10 representing nothing (ahem) short of gross undervaluation in company true value terms. The plain and simple reality.
With the additional reality being that breakout velocity hasn't yet been reached/achieved. A simple matter, to date, of ongoing accumulation. Not a breakout. We hit breakout velocity/volume and we'll see $0.40 to $0.50 in a single session. The truly massive buy-side that simply overwhelms. The company's registered representative leading the way. With this coming trading week holding realistic potential for just such a breakout. Management poised and ready to continue the welcome PR parade. To leverage as called for. With numbers representing the central point. The crux.
A senior listing lending an air of respectability/legitimacy that being quoted simply doesn't and can't offer. The right venue drawing the welcome attention of worthwhile analysts and a whole host of the welcome additional. Facilitating capital raising pursuits. Capital raised the right way. The shareholder respectful way. So on.
The continued upside from the next Open onward.
The plain and simple reality.
Accumulation to breakout with no looking back.
A permanent end to being grossly undervalued at market level.
And the graphically depicted...
http://stockcharts.com/h-sc/ui?s=SPNG&p=D&yr=0&mn=3&dy=0&id=p63063779670
Green and more green.
On the way.
May 7, 2009...
'SPNG … announced today that its Board of Directors has voted to seek a listing for SpongeTech(R)'s common stock on the NASDAQ Capital Market. As part of this process, SpongeTech(R) will prepare and submit an application for a NASDAQ Capital Market listing. In addition, SpongeTech(R) will undertake the corporate actions necessary for SpongeTech(R) to meet the quantitative and qualitative requirements for the listing application to be approved. SpongeTech(R) currently meets most of the financial listing requirements with the exception of stock price.'
NASDAQ Capital Market Initial Listing Requirements:
Bid price…
$4.00
Publicly held shares…
1 million
Shareholders (round lot holders)…
300
Latest FORM 10-Q detail...
'Subsequent to the date of the financial statements, the Company cancelled an aggregate of 526,585,544 shares of common stock. The shares originated from the repurchase of common stock of RM Enterprises. This reduces the number of outstanding shares of common stock from 1,249,451,605 to 722,866,061 shares.'
With there being -- for SPNG as of this writing -- a very significant difference between shares outstanding and shares 'Publicly held'.
And, so, on the subject of a reverse split we have a no-brainer situation. In light of liquidity considerations and market cap. Inclusive of the effect of applicable multiples. Management being obviously intent upon some serious leveraging in eliciting a near-term pps as high as realistically achievable. A little simple number crunching yielding, in concert with close attention to detail, the fact of no significant magnitude reverse split.
Coming trading sessions to see continued strong pps appreciation. Appreciation in line with fitting company intrinsic valuation. The effect of applicable multiples inclusive.
Next trading week to see the continuation of the leveraging. Managerial maneuvering in bringing tangible shareholder value. Yielding the called for senior listing in timely fashion. Advancement to a fitting trading venue. One that fully opens the door to operational viability. To maximization of cash flows from operations and net earnings and the related rest.
Our approx. $0.10 Close being the least of it.
Next trading week and beyond poised to see trading levels well in advance of $0.80.
Fitting value. True value. The always combination of current and future value.
Revenues projections.
Earnings guidance.
Forward periods realities.
Plain and simple.
Onward and upward.