They don't file 8k's for changes in share structure anymore. They think they are exempt from filing A/S changes and being consistent in filings. LOL, exactly what the NASDAQ is looking for.

The fact that PR's have subsided and volume is dropping of a cliff could mean 3 things to me:
1. they ran out of shares to sell and are now waiting for the next batch (A/S increase) to be release with a new set of opinion letters.
2. they already sold all shares OS now 2.75 billion, they need to increase the A/S again.
3. The SEC is taking a closer look at them and their(SPNG) lawyer told them to take it easy for a while. Or they can't get anyone to issue opinion letters anymore.

Let's hope so.

Thanks laflyersfan,

All true, in fact I even posted a prediction of a bounce to come. Besides, I did have a suspicion that Knopick (E&E communications) would pump this sooner or later but nobody could have predicted the exact timing. Hindsight is always 20/20

But they(IHUB) are, exactly my point. Matt still has access and is involved in the day to day business of IHUB, just look at his profile.

You guys are getting too hung up on that credit card thing. I'm more worried about criminals with access to personal information (such as names, addresses, IP numbers etc.) causing harm to IHUB members.

"I'm not sure exactly how it works, because I am a lifetime member, but I think there is a box you check when you sign up to pay your membership fee that allows you to auto renew or not."

It actually automatically renews and you get a pm from MATT when your subscription expires. So, yes Admin has to do with it. Now I wish I send Matt a rack or barbecue ribs in exchange for a life membership instead of handing out my credit card, although it would make me feel a little queezy.

"With 1.5 bil. NSS I think it is reasonable to believe that the short sellers have already made more than double or triple that amount off of SPNG thus far, IMO. 1.5 is the figure the company has info. on."

If you really believe that, wouldn't it be prudent to sell all shares and not buy any more, so the shorts can't profit of the longs? Obviously the shorts know something that the longs don't know, and therefore are making money right?

"Thus, when the forced cover comes and the hoped for SS there will be shorts stepping over each other to cover --"

Now I'm confused, these overseas naked shorts sell you shares without showing up on the REG SHO list, yet you think they will be forced to cover? If no US agency is even aware of them, they are not showing as FTD's on the REG SHO list nor do they show on the short list, who exactly will force them to cover?

"..driving the price up amongst themselves, especially if SPNG declares a stock dividend and the shorts want to beat the ex-div. date so as not to be on hook for the stock div. shares also. 7.5 bil. is nothing."

Again, the current amounts of FTD's on REG SHO can be covered in a few hours of trading without affecting the sp (and are every other day) and I'm not sure where SPNG would get money from to declare any kind of meaningful dividend. Last 10Q they didn't even have $100k in cash. 7.5 bil. is nothing? is that $7.5 bil.?

"- then settle down to true value of SPNG: $6-7"

Even at an OS of 722 million, $6 would give you a $4.3 billion market cap. I think all sponges sold in the history of the earth wouldn't add up to that amount. Are you joking about that sp?

I don't think so, but with nobody being suspended/fired, there is a good chance that lawyers will swoop in right after a conviction and bankrupt this place. IHUB/ADVFN better crosses their fingers and hope that MATT doesn't get convicted. Apparently that is their strategy.

LOL, I didn't notice the rollers on that cart, now that you pointed it out, they probably just rolled that cart into the isle and put the ad on the counter to take the picture. I also noticed the cart being stacked all full, does that mean not one bottle sold?

And yet at least one of them still has control and full access of all the information on IHUB including possibly that of witnesses and at the very least your and my credit card and personal information (including our IP). Not only am I not happy about that, but it exposes IHUB/ADVFN to a huge liability suit.

yep, if I'm thinking that WNBD is overvalued at .0028, what do I think about it at .0125? have a good night everyone.

yes it was a good buy for a trade of course, silly question. I never said it wa a bad buy, I said it was risky, which it was.

sorry, didn't mean to ruffle any feathers, but the truth is much more likely that there is no short selling (naked or otherwise) but dilution.
glta

of course I signed my real name

yes, according to two posters that is what Bill Young said. I forwarded it to the SEC as I belive it is stock manipulation and misleading shareholders.


Posted by: crashman Date: Sunday, August 16, 2009 8:32:19 PM
In reply to: spongeboy who wrote msg# 166485 Post # of 167425 [Send a link via email]
I send it to the SEC, they will get to the bottom of it:


To whom it may concern,

Spongetech delivery systems (SPNG) seems to mislead investors:

on 7/27/2009 they issued a press release saying in part:
(OTCBB: SPNG) is pleased to announce that the Company is taking action to amend its Articles of Incorporation to reduce the number of common shares that the Company has authorized to 900,000,000 (nine hundred million) shares. In addition, the Company has also begun the process to lower its outstanding shares to approximately 500,000,000 (five hundred million) shares.


As reported in the Company's 8-K filing on May 26, 2009, SpongeTech® amended its Certificate of Incorporation to increase its authorized common shares from 1,800,000,000 (one billion, eight hundred million) to 2,000,000,000 (two billion).

while in the meantime the raised the authorized several time as late as a week ago to 2.75 billion shares. Also no 8-k filings have been made since May 26,2009 about the changes in sharestructure.

Also, it appears that Spongetechs investors relation personal (Bill Young) dissiminates information to shareholders as truth, that is unlikely to be true and not veryfiable and entices shareholders to buy the stock: Here are two posts from Investors Hub:

---------------------
Posted by: spongeboy Date: Sunday, August 16, 2009 6:58:51 PM
In reply to: help me who wrote msg# 166483 Post # of 166502 [Send a link via email]
1.5 Billion Short confirmed? I Called Bill Young also

I called Bill Young on Friday about the A/S increase and he volunteered info to me about 1.5 Billion Naked Short shares (nothing about Singapore per other posting) - I did not ask about it - he told me and I believe him. I will keep the rest of the conversation private because I do value his time and the time he spent with me BUT I posted his phone number on Friday and any investor can call him - he is our contact for investor relations.

----------------------
Posted by: spongeboy Date: Friday, August 14, 2009 3:17:36 PM
In reply to: SpongeBob2010 who wrote msg# 165272 Post # of 166482

I spoke to Bill Young who answered at 623-238-5245
and I am now very happy with this investment. Any shareholder can call. Be polite. You will like the answers.


Posted by: sponge_digger Date: Sunday, August 16, 2009 10:16:46 AM
In reply to: k9narc who wrote msg# 166150 Post # of 166502 [Send a link via email]
I believe the shorts are with us like it or not. I spoke with Bill Young (SPNG IR) on the phone Friday who openly stated to me that "over 1.5bil shorts are out there and majority in singapore". Perhaps the reason for the increase in A/S is so these shorts can cover and like STOXMAGIC talks about...after the cover they can be forward split to the current shareholders and we as shareholders can benefit from the illegal activity. As the short positioned grow closer to facing the music we are seeing desperate and unsubstantiated claims about the company. I embrace this as it appears to spell out the shape of things to come. My opinion is that the company is hyperaware of the ss activity and has taken every step legally to deal with it and continue to focus on business at hand (Selling sponges and Branding a name).

Good luck to all and sleep well at night fot one day soon we might wake up and be listed on NASDAQ

Thank you for your attention,

Sincerely,

Crashman

When Bill Young tells fairy tales about 1.5 billion naked shorts from Singapore (I'm now glad I forwarded that info to the SEC), he is forgetting that the smart trader/investor actually reads the SECs web site:

Question 1.3: How does Regulation SHO apply to overseas transactions?

Answer: Footnote 54 of the Adopting Release states that any broker-dealer using the United States jurisdictional means to effect short sales in securities traded in the United States are subject to Regulation SHO, regardless of whether the broker-dealer is registered with the Commission or relying on an exemption from registration. The Proposing Release explains that short sale regulation applies to trades in reported securities when the trades are agreed to in the United States, even if the trades are booked overseas. (68 FR at 62997 and 62998). Whether a short sale is executed or agreed to in the United States will depend on the particular facts and circumstances of the transaction. The Proposing Release provides some examples of when we would consider a short sale to have been agreed to in the United States. (68 FR at 62997 and 62998). For further information about how the provisions of Regulation SHO may apply to overseas transactions, please refer to Question 4.6.

Question 4.6: May a U.S. broker-dealer that executes orders on behalf of a foreign broker-dealer rely on a locate by such foreign broker-dealer in the same way that the U.S. broker-dealer may rely on a locate by a U.S. broker-dealer or customer?

Answer: Rule 203(b)(1)(ii) permits a broker or dealer to accept a short sale order in an equity security if the broker-dealer has reasonable grounds to believe that the security can be borrowed so that it can be delivered on the settlement date. The U.S. broker-dealer may rely on a locate of a foreign broker-dealer in the same way that the U.S. broker-dealer may rely on a locate of a U.S. broker-dealer or customer: the facts and circumstances must provide a basis for a reasonable belief that the security will be available for delivery on the settlement date.

Moreover, the locate information must be documented. Consistent with Footnote 58 of the Adopting Release, the documentation should include the source of the securities given by the foreign broker-dealer as the basis for the locate and support for the reasonableness of the reliance on the foreign broker-dealer. For further information about how the provisions of Regulation SHO may apply to overseas transactions, please refer to Question 1.3.

http://www.sec.gov/divisions/marketreg/mrfaqregsho1204.htm

"Others are upset by this development and will begin to cover their 'short' position."

Yeah, that's it, why else would the sp keep going down.

SPNG doesn't have a large naked short position no matter what lies Bill Young is telling shareholders. But you believe whatever you want.

Fantasy KING, nice work:
"
July 2009
07/01/2009: 1,400,108
07/02/2009: 16,522,123
07/06/2009: 18,443,157
07/07/2009: 18,036,440
07/08/2009: 159,174
07/09/2009: 71,247
07/10/2009: 567,616
07/13/2009: 63,892
07/14/2009: 92,500
07/15/2009: 3,514,444
07/16/2009: 49,152
07/17/2009: 1,002,442
07/20/2009: 14,725,754
07/21/2009: 9,471,912
07/22/2009: 8,088,135
07/23/2009: 5,200,621
07/24/2009: 4,272,930
07/27/2009: 356
07/28/2009: 322,000
07/29/2009: 140,175
07/30/2009: 6,666,574
07/31/2009: 16,065,416
Total 124,876,168

My conclusion is that the sp has been very badly manipulated, through july especially, and the company really needs to address this somehow (which I believe is in their plans)"

You are making a mistake though when you add the numbers together. The numbers every day are already the total cumulative number of fails to that day, the total on 7/31 actually is 16,065,416 and not 124,876,168. Just read my post from yesterday:

http://investorshub.advfn.com/boards/read_msg.aspx?Message_id=40560815&txt2find=cumulative

No, that is not what my post says. The SEC says that you get on the RegSho list if the FTD's exceed certain numbers 5 days in a row.
It also says after FTD's fall below the .5% (sufficient trades settled) the company will remain on the the list for another 5 days and if at any time during those 5 days the FTD's go above the .5% again the 5 day counter to get off the list will be reset.
That's why SPNG was on the list despite most days showing very little FTD's.

maybe you want to read my post again scroll down and read the section:
Reasons Why A Security May Stay on a Threshold List for Longer Than 13 Consecutive Settlement Days

It's amazing, but the SEC answers all the questions about FTD's, short selling and RegSho, we don't have to make up stuff, we just need to read the rules and explanations.

huh?

No Here is all the information:

1. What is a Threshold Security?

Threshold securities are equity securities that have an aggregate fail to deliver position for:

* five consecutive settlement days at a registered clearing agency (e.g., National Securities Clearing Corporation (NSCC));15

* totaling 10,000 shares or more; and

* equal to at least 0.5% of the issuer's total shares outstanding.16

Threshold securities only include issuers registered or required to file reports with the Commission ("reporting companies").17 Therefore, securities of issuers that are not registered or required to file reports with the Commission, which includes the majority of issuers on the Pink Sheets,18 cannot be threshold securities. This is because the SROs need to look to the total outstanding shares of the issuer in order to calculate whether or not the securities meet the definition of a "threshold security." For non-reporting companies, reliable information on total outstanding shares is difficult to determine.

and when does it come off the Threshold list?
Here it is:

4. Inclusion on, and Removal from, Threshold Lists.

At the conclusion of each settlement day, NSCC provides the SROs with data on securities that have aggregate fails to deliver at NSCC of 10,000 shares or more. For the securities for which an SRO is the primary market, that SRO calculates whether the level of fails for each security is equal to, or greater than, 0.5% of the issuer's total shares outstanding of the security. If, for five consecutive settlement days, such security satisfies these criteria, then such security is a threshold security. Each SRO includes such security on its daily threshold list until the aggregate fails level for the security falls below these levels for five consecutive days. (See below for a discussion as to why a security may appear or remain on a threshold list.)


and of course they explain why a security like SPNG would be longer than 13 days on the list:


C. Reasons Why A Security May Stay on a Threshold List for Longer Than 13 Consecutive Settlement Days

Even when broker-dealers close-out delivery failures, a security may remain on an SRO's threshold securities list for longer than 13 days. Examples of why securities may remain on the threshold securities list:

* after broker-dealers close-out all delivery failures, the security stays on the threshold list for five consecutive days;

* new delivery failures resulting from long or short sales may have crossed the threshold, keeping the security on the SRO's threshold securities list; or

* the delivery failures at NSCC may have been established prior to a security's appearance on the SRO's threshold securities list, and are grandfathered from the close-out requirement of Regulation SHO.

For information about specific securities, contact the appropriate SRO or its market center listed above.

http://www.sec.gov/spotlight/keyregshoissues.htm

That's not how it works, Once FTD's reach the threshold, The company stays on the RegSho list for several more days even if all FTD's have been delivered. BTW to get on the REGSHO list, there have to be 10,000 or more FTD's and the FTD's have to exceed .5% of the OS. 356 shares alone would not put any company on the RegSho list unless the company already is there. The key is to understand the rules before arguing about them.

Any one can look it up and see the day where they had 356 FTD's.
They have to shield themselves from liability in case they accidentally publish wrong data, doesn't mean all data is wrong. Sheesh ever seen disclaimers?

yep checked it, one day they had 356 FTD's, do you think that could impact the sp?

All FTD's we have seen so far can be covered in a few hours of trading (if they are naked shorts which they probably aren't) without affecting the sp.

Where do you see a large NSS position, who are those people (they)? FTD, REGSHO and short interest show nothing to support your theory.

"The problem is their position is so big, they can not touch it. When they try to cover such a large NSS position the price will sky rocket."

How do you know all this? Do you have any documentation showing this or are you just going by the word of Bill Young the IR clown?

I think I have said this before, too many red flags. If/when the SEC suspends trading all the buys will look bad. I don't invest in scams (at least I try not to invest in scams). As investors we should adhere to certain ethical and moral standards IMO.

OS about 1.4 billion AS 3 billion as I remember

Yes, I said the same thing when it was around 4+ cents and then went subpenny, though I don't claim to be always right about short term trading. Looks like I'm right again today, good for me bad for the stock .

rescue from a total share price collapse. Price and volume indicate that investor fatigue is about to set in and people are getting tired of absorbing the ongoing dilution by buying shares while the sp doesn't appreciate. Volume drops until a jolt to the downside or blockbuster news awakens interest again. In this case pretty much all the trump cards have been played, of course I don't know what Moskowitz will come up with next.

this "rescue" PR just seems to be all they can muster without falling on their face again. I doubt there is much else they can do now to prop up the sp. Uh oh wait a minute, the penny scam playbook calls for the "unknown entity" offer to buy SPNG at a ridiculous price per share next. I'm holding my breath...

"Only 2365 Shareholders own spongetech as of last 10k"

It's a lot more now, I'm sure

Almost noon, and not even 14 million shares traded. IMO when the volume dries up, the sellers only choice will be to hit the bid in order to get rid of shares.

.143, sp looks deflated, but without another blue sky PR, I'm afraid more air will escape the sp.

I think the yet again increased A/S is taking its toll on the sp. However I'm waiting to see another e-mail from Moskowitz to a shareholder explaining that it just was a "clerical error" because they meant to lower the A/S. Wait a minute LOL, that was two A/S increases ago when he told that.

Oh god, yes I didn't even notice.