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New SpongeTech Products - Amazing!!
http://www.spongetechs.com/SearchResults.asp?Cat=60
SpongeTech's® Recent Highlights
http://www.spongetechinc.com/company_profile/highlights
The Company's gross revenue* for FY2009 ending May 31, 2009 exceeded $50 million, versus $5.633 million in FY2008, an 888% increase.
In FY2009, SPNG had pre-tax profits of $10 million*, up 834% from $1.2 million for FY2008.
New orders booked for the first three months of FY2010 (June 1, 2009 through August 31, 2009) shattered last year's record pace coming in at approximately $70 million*.
In 2009 SpongeTech® expanded its licensing agreements with Nickelodeon and Viacom to market SpongeTech®’s SpongeBob Square Pants soap filled bath sponges. The Company's national marketing campaign was launched in early August.
The Company acquired Dicon Technologies in 2009 for $4.5 million in cash, to further vertically integrate its research, development and manufacturing processes. SPNG expects to fully exploit Dicon's massive distribution networks worldwide.
SpongeTech® recently signed agreements to partner with six NFL teams for the 2009-2010 season with several more signings expected prior to the season opener. The Company has also greatly expanded its MLB presence and is now featured in 28 major league ballparks.
SpongeTech® expanded its partnerships with the NHRA and NASCAR circuits, greatly increasing its visibility by signing a sponsorship deal with the Mike Ashley NHRA Race Team.
During FY2009 SpongeTech® expanded its presence to over 40,000 retail venues in the U.S. and Canada, up from 1,700 stores 12 months earlier.
SpongeTech® recently entered into an agreement with Wakefern Farms for merchandise placement in ShopRite, a retailer who serves over five million customers each week.
SpongeTech® has again signed with QVC to market Uncle Norman’s Pet Sponge during QVC’s Happy Hour. This ongoing program has the potential to reach up to 141 million consumers.
Close Estimates:
24 cents today
35 Monday/Tuesday
50+ Oct 15 (10Q)
$1+ Jan/Feb 2010
$4+ Summer 2010
I bet that was havard boy shorting those 5M shares
Carpe - My guess is SPNG goes to NASDAQ in 6-9 months - just after the RM shares are bought back and retired out of the OS. Why rush to merge with a NASDAQ company or doing a RS when our 1000% growth rate will get us there soon enough? Don't get me wrong, if P&G came and offered us $5-$10 a share, I'd be happy to sell.
SPNG should promote the car sponge using this concept. The ad would be way better than any Carl's Jr commercial.
OK, I'll go if you invite the SPNG Girls
SPONGETECH.com advertisement sign at Yankee stadium tonight (TX vs NY). It's just to the right of homeplate hanging in the 2nd deck. BTW, it looks real nice in HD on ESPN2!
Wadi, another great post! I agree, the only way to explain the effective "zero float" due to long shares and the heavy trading is NSS.
Although it's frustrating to deal with the NSS, I think SPNG will continue to show revenue growth month to month and within 6 months, easily pay back the 460M RM shares at cost (3 cent per share?). As you have outlined, the OS will drop significantly to below 200M, maybe even down to 100M. Valuation of SPNG at this point should be easily above $4 if you base it on 2010 earnings.
I've been accumulating long shares over the past 2 months and plan to keep them through the pending uplist to NASDAQ. I have been buying more shares this week and am glad to see you are doing the same. Of course, I don't have your deep pockets, but I'm a very happy SPNG shareholder.
Again, thanks for sharing all your due diligence and wisdom with all of us on this board!
New SpongeTech product under development. These guys know how to advertise, very impressive results!
Fish, I think it will be early next year before SPNG can afford to pay back the 460M RM shares. Depending on the issue price, that is at least $10M that I expect they need to fund and keep pace with new orders including the new SpongeBob production. Just my take ....
Wadi, excellent news today!
I think the pending 10K puts SPNG at your guess of 500M OS with 900M AS. Profits of $10M+ before taxes should be about $7.5M. EPS will be 1.5 cents and given a conservative P/E of 25, that gives us a SP of 37.5 cents based on TRAILING earnings.
More fun with valuation: If we calculate the same numbers based on 2009-2010 estimate of $300M+ revs and $35M profit after taxes and RM 460M shares paid to reduce OS to 200M, we get 17.5 cents. With a P/E of 25, gets us $4.375 !! Now, that's some nice math.
Yeah, no need to change the bandage, it stays clean. Just wet and press to activate the antibiotic everyday. Nice!
Wadi, actually on the 31 July PR, SPNG said they were in excess of 40K stores and expect to be in 100,000 by year end. So my numbers are a little off, but still in the ballpark for later this year. Of course, with the Sponge Bob orders, who knows what the production numbers will be on a monthly basis. SPNG claims they have the capacity for the expected increase in orders between their 4 manufacturing sites.
It said "SPONGETECH.com - Americas Cleaning Company" and was shown during the 3rd inning of the game tonight.
Wadi, I was thinking about how reasonable the millions of dollars in sponge orders are with inventories in stores - just as a "does it make sense test". So, I made some assumptions and did the math. With $25M in orders per month now, that would translate to 5M sponge kits (if @ $5 avg. wholesale cost, this is just a guess). That assumes all the $25M orders are sponges which isn't true, but most of it should be sponge orders. Anyway, assuming all $25M are sponges and given SPNG claims they are in roughly 100,000 stores, that gives the avg order of 50 sponge kits per store per month. Of course, some stores may order 100's and some just 10-20 per month depending on their forecasted sales. This seems very reasonable. Do you agree?
Also, IR told me that same store sales has been running about 15% growth over last year. That is excellent!
Wadi, thanks for all your DD and very logical theories. I like this particular theroy on the MOASS and sale of 2B in AS, very smart for SPNG.
Can you help squash the rumor of the 2.7B AS? I can't find any proof of this on any of the PRs or SEC documents.
Live now - Braves vs Marlins SPONGTECH ad! Nice! Right behind home plate so it's in every pitch.
Guys, time will resolve all this shorting mess. Once this stock moves to NASDAQ or gets acquired, all the NSS will have to cover. So why does it matter? Just buy cheap shares now and hold!
Reasons for SPNG price drop today:
50% sold due to margin calls on other stock losses
20% day traders sold to buy other stocks on sale
20% profit taking
5% due to those crooks still NSS shares
5% fat fingered the sell on SPNG when day trading
0% LONGS sold because they realize this is a GREAT STOCK!
All IMHO of course!
Thanks, I was just down in Manhattan this weekend but of course the office was closed. I'll check out the pics.
Has anyone actually been to one of the 4?? manufacturing sites to see the sponges being manufactured or been down to Manhattan to their office?
Thanks for the information. I been tracking this stock for a few weeks and have been impressed with the products, marketing, distribution channels, profits, zero debt, extreme growth rate - so I finally bought my first shares today. GO SPNG!
The last 10Q on 20 April 2009 stated on the balance sheet:
STOCKHOLDERS’ EQUITY
Preferred stock, $0.001 par value, 55,000,000 shares authorized, 0 shares issued and outstanding
Common stock, $0.001 par value, 1,250,000,000 shares authorized, 1,249,451,605 and 365,473,214 shares issued and outstanding at February 28, 2009 and May 31, 2008
========
Does anyone have any updated information? Why does everyone say only 722M O/S?
Same here, my TDAmeritrade account shows the same. WTF?
I have shares from the HISC dividend (Frank's former disaster), but my broker doesn't recognize them for trading. Anyone else have this problem, if so, how can I fix it? Also, I tried calling the company with no luck. Anyone got a good number for Watchit?
SHORT SQUEEZE COMING !!!!!
American Bulls says WAIT.... wait for what?? a 35% gain isn't good enough??? Geez .. GO PBLS!!
http://www.americanbulls.com/StockPage.asp?CompanyTicker=PBLS&MarketTicker=OTC&TYP=S
momentum, In my opinion, you are right on target about PBLS suffering over aggresive buys and growing pains. The failure to pay a timely divy is really a major screw-up. But, I keep going back to the preferred III shares that CA, PA and RB own. If the value is believed to be $100M+, how do they get paid if this company is worth only $11.5M? The company must build revenues/profits and grow to get their big payday. If liquidated, the preferred III shares won't be worth much at all so they have a BIG vested interest for this company to succeed!
As for converting more of my shares to the 8 cent preferreds, I'll be comfortable only when I recieve my first divy on my 6 cent preferreds.
Shelby, thanks for the update and keeping us longs upbeat about PBLS
Oh well, it was a nice thought while it lasted
Fizz, nice find! I especially like the parts with CTO Mike Riley, a new quick setting concrete and a "green" investment to boot. But a competitive price seems to be a problem at this point.
With concrete prices rising across the nation, Hyman figures a company like his will have to deliver product in the $50 to $90 range to be competitive, especially in the price-sensitive, high volume ready-mixed and pre-cast sectors. He’s confident that CeraTech will be able to compete in these segments soon.
“We’ll be there in the short term,” he says. “When we get there, with our mechanical properties, the game’s over. It’s just a matter of time before we can get our price down to that price point.”
Up to now, CeraTech has focused on the repair market, one of the smaller sectors of the industry. Their unique line of environmentally friendly, all-weather, rapid setting, cementious structural repair mortar and concrete products has gained them a solid foothold, particularly in the rapid-repair corner of the business. But Hyman and company principals David Settl (CFO) and Mike Riley (chief technology officer) want more. They want to bring their existing formulation and a new, even more promising formula to the much larger and more competitive sectors.
Basically, CeraTech has developed a new technology for making cement. The proprietary formulation that launched the company’s product line is a single component powder that is water activated. Simply mix it in a bucket with water and pour out cement or concrete. The end result is a cementious material with qualities that meet or exceed the qualities of more conventional cement. The rapid setting, rapid strength-gaining characteristics of CeraTech’s “Pavemend” line of products make them an ideal material for a large range of projects including quick repair of bridges, roads, airport runways, warehouse and manufacturing facility floors, post-tension cables, parking garages and more. Within minutes, products in the Pavemend line harden, making it possible to drive on them, taxi aircraft over them or store heavy equipment atop them. Variations of the formulation in the Pavemend line and in other company mixtures extend working/setting times, allow for use on slopes or grades and vertical structures, can be reanimated without water for further manipulation and are available for use over huge temperature variations (from minus 10 degrees F to 120-plus degrees F) for both repair and structural construction.
In the main, CeraTech’s products set and dry more quickly than Portland cement products and don’t require mixers for continuous rotation and wetting until they are poured. What’s more they are green, making use of recyclable waste streams such as the coal byproduct, fly-ash, in far greater measure than their Portland cousins.
“The reason we think CeraTech has a promising future is that it has a new form of concrete that is better than existing concrete and recycles a product that has to be landfill now and we think it is a promising job creator for the city.”
Green Aspect
According to Dave Goss, the executive director of the American Coal Ash Association, the production of Portland cement accounts for between 4 percent and 8 percent of carbon-dioxide emissions globally. That makes the cement industry one of the largest single contributors of harmful greenhouse gases in the atmosphere.
But the industry can and is making an effort to become greener by making use of industrial waste streams. Fly-ash in particular, a byproduct of coal burned in powerplants to produce electricity, offers great potential for helping to reduce CO2 emissions from cement production.
“If you’re manufacturing Portland cement to use in the production of concrete, you can use fly-ash and bottom ash as a substitute for the raw sand, shale or raw materials going into it,” Goss explains.
“If the Portland cement mix used to make concrete calls for say, 400 pounds of Portland cement, you can take 100 pounds of the Portland cement out and put 100 pounds of fly-ash in instead and get the same results in the concrete,” he says. “It’s easy to substitute anywhere from 20 to 40 percent Portland cement in concrete using fly-ash. If you don’t have to manufacture a portion of the Portland cement for your concrete mix design, then the cement kiln doesn’t release the CO2 generated during the production of Portland. We say that for each ton of fly-ash that you use in a concrete mix design instead of Portland cement, you’re eliminating that ton of CO2 released in its production. It’s a one ton to one ton ratio. That helps reduce greenhouse gases.”
An added benefit is that fly-ash is finer than the particles in regular Portland cement. Using it can make concrete mixtures less porous and more durable. In other words, using fly-ash makes for higher quality concrete.
“Concrete with fly-ash content typically lasts longer than concrete without it,” Goss says. “You improve the lifespan of projects and that adds to greening in that you may be able to avoid replacing the concrete you laid down for a longer period of time.”
Thanks Shelby for SOME good news today. I vote Shelby for moderator !!
Do you trust there will be enough $$$ left over in the company once PBLS is liquidated, bought out or due in 5 years for payouts of preferred IIs once RB, CA and PA cash out their $100M+ preferred IIIs?
Shiz, that makes no sense to "test" some preferred shares. You only have until Nov 30th to committ to the 8 cent preferred deal. How do you test because your 4th quarter divy won't be paid until sometime next year - too late to send in more shares. Are you privy to another follow-up preferred offer at a higher conversion price in the future? Did RB tell you the same song and dance I heard from his mouth about offering 10 cents or more on the "next" preferred beg-fest?
So Shiz, are you going for the 8 cent deal or not? If you KNOW they will pay, why not? Please share your insight and thought process with us.
Who's going to turn shares in for 8 cents now? At least if the company goes belly up, preferred shareholders get paid first. That's if you assume the liquid assets of the company is worth the amount they have issued in preferreds. Any takers or comments? BTW, I'm still waiting for my first divy check.
Let's here it for going over 1 cent tomorrow ... HIP, HIP, HOORAY, HIP, HIP, HOORAY !!!
.... As one poster always says, BRING IT PA!!!!!
Yippie! ... Hooray! It's time to load up on cheap shares and convert all of them for almost a 10X gain by taking the 8 cent preferred, right?? Anybody with me??? I might as well just go ahead and convert all my shares to preferred, right? Hey, then I'll have all preferred and no common just as I suspect that Ron, Paul and Carol have done with the preferred III deal. Then, I could care less what manipulation, naked shorting, OS-dilluting games are being played with the common shares. Where's my beer? .. it's time to celebrate, life is good !
Hmmm, only one problem with that strategy ..... where's PBLS going to get the $$$ for the quarterly divy and payout in 5 years??? All the sudden my beer buzz has worn off ... maybe life isn't so great after all.