Spongetech Delivery Systems, Inc. (fka SPNGQ)

[flaflyersfan]

powerbar03, The CEO of SPNG brought up the "naked short";

Management believes that our stock has been influenced by the illegal practice of "naked short selling". These people, or entities, are trying to undermine the shareholders' confidence in our Company, trying to induce you to sell your stock, and, in simple terms, hoping that if you do they will be able to buy back their short position sale at a significantly lower price. They use detailed and complicated systems, and even sell from overseas through other exchanges, to sell nonexistent shares all day long trying to create a disparity between legitimate buy and sell orders.

These unscrupulous entities strategize to create stock price erosion in an effort to try to force us to continue to dilute the Company to raise funds. As you know, we have invested significant money into our Company and hold a large position in stock that is not registered and cannot be sold. The float of the Company is significantly lower than the authorized and outstanding shares issued by the transfer agent. There are upwards of 300,000,000 shares that cannot, and will not, be sold into the market that could affect price dilution of our security.

http://biz.yahoo.com/prnews/080915/clm114.html?.v=68

Any time a company plays that card, it is a red flag. period. But since the company said it...shareholders will not believe anything else.

At what point along the way did you realize that $200,000 was a little too deep to be in your other stock? The bottom line is that if you do not know how to sell a stock, there is no reason to buy it. Insiders at SPNG are selling themselves shares of SPNG at a 40% discount to market with a guaranteed buyout of .02 per share. If you are going to throw huge $$$ like that at a penny stock; go that route in the future instead of buying retail.

Good luck.