Spongetech Delivery Systems, Inc. (fka SPNGQ)

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Here is some follow up from the link:

http://www.smallcapnetwork.com/scb/spongetech-delivery-systems-spng-and-applied-dna-apdn-blasts-from-the-past/2732/

If you were reading the SmallCapNetwork newsletter a year ago or more, then you’re already familiar with SpongeTech Delivery Systems (SPNG) and Applied DNA (APDN) – two names we’ve been watching for a while now, biding our time in anticipation of a point where their respective stocks start to reflect the company’s potential. Well, Applied DNA shares are up 70% year-to-date, and SpongeTech shares are up 225% for the week. It’s about time; you can say you “knew them when.”

Actually, it may be a tad premature to pop the champagne bottles just yet. These are great moves (and fully deserved in most regards), but you don’t want to take off your trader’s hat just yet.

If you got into SpongeTech at any point in March, we suggest you go ahead and take short-term profits – you’ve definitely got them. The stock’s been hot lately … perhaps a little too hot for this rally to be permanently sustained.

If you’re in SPNG at a higher price (pre-March), you may be in the hole or about even. Be forewarned this thing may go lower again before it goes higher again, so don’t blindly expect sunshine and roses from here on out.

That said, if March’s sales results are an indication of what to expect going forward (and I think it is), then this is now a profitable $100 million company. And it’s not a fluke either – SpongeTech has been growing the top and bottom line (as they said they would) for six quarters now. Dilution or not, shares are worth more now than they were then.

And there’s the rub, this concept of worth. It has been for more than a year. Just because a stock “should be” worth a certain price doesn’t mean it will be. That’s why I suggested leaving your trader’s hat on a while longer – there’s been a long disconnect between SPNG’s value and SPNG’s actual price. Maybe the recent jolt solved the problem. We’ll see.

With that understood, we think based on current sales and projected revenue, SpongeTech’s stock is actually worth about 20 cents per share. Will it get there? That’s a great question. We’ll just say the last three days have jump-started the best attempt we’ve seen so far.