Spongetech Delivery Systems, Inc. (fka SPNGQ)

[stoxmagic]

A5,

We'll start with the fact that there are a great many fully operating BB outfits currently meeting all NCM initial listing requirements. Uplisting, for any of same, being not a problem. If desired. SPNG, on the other hand, as a BB outfit still in the throes of achieving fully operating status and yet largely meeting the referenced requirements but for pps circumstance, is remarkable. Such an outfit uplisting to a senior level being rare. And, below, I've reproduced the Q&A shared with the board. The questions posed. The answers provided by Bill Young at company IR as of Friday, June 19. And...

1_

"Outstanding shares: I assume you can't give details but just nod your head if there is some type of buyback in process."

"Outstanding shares: we have a on going repurchase program."

2_

"Reverse Split: Can you get share price where you need it without doing this?"

"Reverse Split: would be the last thing we would do lose 2 year branding the symbol"

3_

"Merger/Acquisition: Does spng plan to stay an individual or is a partnership on the horizon."

"Merger/Acquisition: always on the table"

4_

"I have everything I own in spng giving me 500k shares. In your opinion... what are year, 2, and 5 year targets for PPS (assuming no R/S). Basically want to know if I can retire in 3 years or will I be starting over."

"I think could retire in 3 years"

5_

"Nasdaq: Time line or possible options for achieving?"

"NASDAQ: update soon?"

With the buyback situation being known to all involved. Ongoing, via the open market...

'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.'

Plus ongoing buybacks involving the holdings of RM Enterprises. With the reverse split situation being interesting. As, very seemingly, management came away from the Thursday NASDAQ meeting with the understanding that, if a reverse split was applied in achieving uplisting, the company's SPNG symbol would have to be changed. And the NASDAQ does reserve…

'the right, in its sole and final discretion, to assign, rescind, or reassign any trading symbol at any time'

'the right to alter, modify, or deviate from its normal symbol reservation procedures at any time for any reason'

We can't say exactly what's gone on. But, certainly, a change of symbol at this point in the company's operating history would be massively counterproductive. And, so, a consolidation of the Outstanding stock? The path of least resistance to the uplisting? And not rocket science. With the M&A situation being as talked about. The likeliest path to gaining the needed listing, given all. And a buyout? Well, seemingly, management wouldn't be averse to such an overture. True value and all. Massive premium to market level. Being entirely realistic. Drawing ever more likely as the growth/expansion push continues. And as for ROI? The near-term? Well, with the BB being what it is? The right formal word, the right spark(s)/catalyst(s) in evidence, and market level will skyrocket. Plain and simple. Tight tradable float situation. No massive abusive shorting. Solid fundamentals. First rate management team getting the job done.

And as for the mentioned meeting with a large investor(s)? And again…

"We have an appointment, in a couple of weeks, to meet with another major stock exchange company."

And what exactly is the scheduled meeting all about? And capital? Well, at the point in the Conference presentation that mention was made of said meeting we had Mr. Metter answering a question about NDA's...

"Yes. In fact we have signed nondisclosures and we are working with one company that is the biggest in the world."

So, seemingly, the upcoming meeting is related to marketing. That which has so massively improved the company's bottom line to-date. ROI. Forming the type of relationships that are so hugely proving up in terms of retail penetration success. While on the question of growth/expansion capital we have from the Conference...

(Mr. Metter)

"We've grown with very little capital."

The capital provided by RM Enterprises. And can the longer-term growth/expansion goals be met via organic means alone? RM Enterprises involvement inclusive? And seemingly so. Cash flow realities. And Mr. Moskowitz from the Conference…

"Last year we did $5.2m. This year we'll do over $40m. We should keep up with that same growth pace over the next three to five years as the products start coming out. Basically, we have about twenty-five products now. We should have one hundred by the end of 2011. The better products are still yet to come. Because we wanted to make sure, before we got into the cleaning of the kitchen and the bath ... we tested it out in cars and we tested it out on dogs before we started dealing with human beings and people in the house. So now that we know that the product works we'll be able to add it to pretty much any item in your house. Whether it be glass cleaners or cleaning the carpet or doing the dishes or doing tables. You know, mopping the floor. Those are where the big dollars in the product are and that's where our biggest gross profit margins are going to be."

The best, by far, yet to come

Buying and holding.

The big money yet to enter. The recent manipulation, the fallout, having washed through. Back to the longer-term trend. That which simply fits. The latest rumor surrounding the manipulation being that the involved 'group(s)' is/are holding tight. Having loaded up at lowest possible cost. And speaking for itself.

And yes, as talked about several times, the company's NOBO list in conjunction with the relevant period DTCC clearing detail can reveal any perceived discrepancy. Counterfeit shares being created. With the simple reality being that any/all shorting is of the legitimate variety. Having talked about it at length.

Our coming trading week hosting no end of potential to see truly massive green. With the technical story, alone, painting a hugely telling picture. And noting what happened the last time the EMA(2) [blue line] crossed above the EMA(5) [red line] and rising. The EMA(10) [green line] following...

http://stockcharts.com/h-sc/ui?s=SPNG&p=D&yr=0&mn=1&dy=0&id=p50356668140

The fundamental. The technical. The wholly telling.

Fun and profitable trading week ahead.

SPNG.

Gotta love it.