Bayou Man, sorry went to bed last night before you asked. Here is the article. Can also be found by googleing spongetech, then search by date, then its about 10 down. Got a nice picture of sponebob too.
June 14, 2009 5:59 AM
A sponge-worthy stock?
Share Print Email Add a comment By Aaron Elstein [+] Filed Under : In the Markets
Here's a sign that investors are regaining their taste for risk: They are going ga-ga over an unlisted stock in a Manhattan company that handles—no kidding—sponges.
SpongeTech Delivery Systems Inc.'s specialties include marketing SpongeBob SquarePants sponges. Its shares soared to 28 cents Friday from less than a nickel earlier in the month, before closing at 17 cents. That means the company, which according to Standard & Poor's employs just five people, has a market value of more than $120 million.
Last week, SpongeTech said gross revenues for the fiscal year that ended May 31 exceeded $50 million and pretax profits were about $10 million—both about 10 times as high as last year's figures. A month ago, the company said it had met “most” requirements to get its stock listed on Nasdaq.
“Talk about SPNG oon [sic] da NASDAQ!!!!! on TV!!” screamed one ebullient fan on a Yahoo message board last week. “We rich!!”
Take a deep breath, people. Revenues might be growing fast, but a recent regulatory filing shows accounts receivables of $14 million as of Feb. 28, way up from $4 million on May 31, 2008. SpongeTech says in the filing that it fully expects to get all its owed, but such a large jump in receivables is a red flag. Collecting could also be difficult, as two-thirds of receivables are owed by overseas customers, according to the company.
And SpongeTech has some distance to go before it's ready for Nasdaq. The exchange requires that companies initially list with a minimum share price of $4.
AI
