Spongetech Delivery Systems, Inc. (fka SPNGQ)

[wadirum1]

Mr Big,

Thanks for posting the charts.

I emailed CEO asking for NO DIVIDEND. If the stock is low because of the shorts, then they have been my best friends. Somebody helped me buy more shares today at 0251.

37M in 09 sales or booked orders. Anyone want to bet against them getting additional orders within the next 9 months?

So, what will the profit margin be and where will we be 12 months from now? I like to think of "effective outstanding shares" (O/S net of the restricted shares that will eventually be sold back to company at cost). Let's just say this total is 300M. Let's say that they earn $6M on 37M in 09 sales (no new orders for 09 delivery). That is 2 cents E per share. A P/E of 10 gets us to 20 cents per share.

I really believe that these are conservative calculations. They might well have higher revs, lower effective shares outstanding, and a higher earnings multiple based on projected future growth.

BUT even if I am overly optimistic by a factor of 2X, we are still looking at 10 cent shares (more than a TRIPLE from here).

Forget about the shorts. Just think this all through and invest accordingly.

Wadi Rum