Sometimes, even the sightless can see.
The 'group' having perpetrated today's manipulation is far from alone. The OTC being of a general nature that invites miscreant behaviors. Self-serving antics running rampant. The SEC having finally tightened certain associated rules/regs. More recent times. A groundswell of complaints relating to abusive shorting practices and Form S-8 abuses, etc. having the SEC finally doing some actual biting. As opposed to simply barking. More than 7,000 OTC outfits having been driven to oblivion while the SEC, for decades, did nothing but sit on its proverbial hands. And, indeed, about time the agency started living up to its own mandate of looking after the collective interest of the little guy/gal.
What it's actually all about.
The SPNG story lending itself ideally to the manipulation we witnessed. Couldn't have been more ideal. A story seemingly too good to be true. And come the Conference presentation, the involved 'group' settled on their plot. An OTCBB outfit being debt free? Revenues of worth? Multiple millions? Strong positive cash flows? Net earnings? Multiple millions? Gross margin to smile about? Growth/expansion rate? Shareholder respectful? The rest of it? Too, indeed, good to be true?
The perfect setup. The perfect lead-in.
Slyly contacting the SEC. Dropping a few 'subtle' hints. To good to be true. Inflated numbers. Miscreant management. Manipulation no end. SPNG.
And then making the rounds. Financial message boards. Dropping a few again 'subtle' hints. SPNG innuendo to melodrama.
"Big dump coming!!!"
"SEC investigation!!!"
"Total SCAM!!!"
"SELL, SELL, SELL!!!"
A manipulation perfectly orchestrated. Maximizing profit. The long side and the short side together. The OTC at its ever-lovin' finest.
A manipulation that, again, cannot be repeated. The 'group' unable to load up at lowest possible cost as previously. Different set of dynamics. No repeat. Simply not possible.
The more astute among us having performed the almost always necessary DD. (Momentum plays being a different story. A reacting thing. Not a thinking thing.) Having pored over the filings. Financials. Having satisfied ourselves of management's forthrightness. No history of impropriety. Resumes researched. So on. Everything on the up and up. All being well. Understanding the RM Enterprises connection.
While on the subject of equity application relative to SPNG we have a situation of a means to an end. Taking the company to the next level. A plan to achieve the mentioned 100 plus SKU's. To focus on product development.
And…
'We intend to look to outsource our sales team who will devote their efforts to promoting and selling our products and fostering relationships with distributors who can assist us with getting our products on the shelves of large retailers such as Wal-Mart and Costco.'
'We are making a strong effort to increase the domestic sales in automotive stores, retail stores, home improvement stores, convenience stores, mass markets, catalogs, drug chains, dollar stores and specialty stores. These efforts have resulted in shipments to CVS, Kroger, Ace Hardware, Bashas’, Price Chopper Strauss Auto, Walgreens, and other distributors. In addition, we are participating in numerous local and national trade shows throughout the USA to promote our products in business-to-business as well as business-to-consumer sales events.'
'We have developed new TV Spots in HD (High Definition) mode and for radio spots which began running on March 23, 2009. They support our growing domestic retail efforts and provide product information for our Car Care, Child Care, Home Care and Pet Care cleaning products. We will also continue to seek to promote our products during special events such as the March Madness NCAA basketball tournament, the Westminster Dog Show, and to sponsor regional marketing events with special product offers. In addition, we expanded our Pet Care product line with the introduction of the Pet Bowl Cleaner.'
'Further in March 2009, we further improved our Spongetech website with better graphics and layout, an enhanced investor section and more versatile e-commerce store selling our products.'
'Also, we have expanded our 2009 sponsorship of MLB professional baseball sports teams by entering into agreements with the New York Mets, New York Yankees, and the St. Louis Cardinals (site of the 2009 MLB All-Star game)… .'
'We no longer depend on a few customers for almost all of our sales. For the nine months ended February 28, 2009, six (6) customers, SA Trading Company, Dubai Export Import Company, Fresco Sales Corp, US Asia Trading, New Century Media and Walgreens accounted for 99.4% percent of our sales.'
And...
For the 9 months ended February 29, 2008:
Revenues:
$1.6m
Total operating expenses:
$1.2m
Issuance of common stock for consulting fees, loan payments, advertising, etc.:
$2.1m
For the 9 months ended February 29, 2009:
Revenues:
$31m
Total operating expenses:
$11.5m
Issuance of common stock for consulting fees, loan payments, advertising, etc.:
$9.7m
Yes. Application of equity being necessary. As the company continues to strengthen its operational cash position. It being also necessary to, indeed, understand how RM Enterprises fits into the equation. Equity application story.
And…
'For the nine months ended February 29, 2008, RM Enterprises, a related party, loaned the Company an aggregate of $2,119,238 for operating expenses, for the purchase of the additional infomercial, and the prepayment of inventory aggregating $266,812 and prepaid advertising expenses aggregating $846,975.'
'As of February 29, 2008, the Company issued RM Enterprises an aggregate of 146,854,720 shares of common stock in consideration for the conversion of an aggregate of $2,119,238 in debt or $0.014 per share.'
And...
'On September 5, 2008, the Company announced a share repurchase program. For the period ended February 28, 2009, the Company repurchased 55,824,336 shares of common stock at an average price per share of $0.0308. The Company will repurchase up to 100 million shares of stock under the plan. The repurchase plan will expire after 12 months.'
'Subsequent to the date of the financial statements, the Company cancelled an aggregate of 526,585,544 shares of common stock. The shares originated from the repurchase of common stock of RM Enterprises. This reduces the number of outstanding shares of common stock from 1,249,451,605 to 722,866,061 shares.'
The big picture.
With it being essential that all those posting to this board understand said picture. How RM Enterprises does fit in. Things being not always what they seem at first glance.
SPNG
Everything on the up and up. All being well. As management gets on with getting on. Taking the company to the next level.
Next trading week seeing the continuation of the understandable charge off the bottom.
Back to the business at hand. Managerial focus on a permanent end to the market level gross undervaluation situation.
Back to our $0.2851 High and on to $0.40 plus.
Green and more green.
Sometimes, even the sightless can see.
AI
