Spongetech Delivery Systems, Inc. (fka SPNGQ)

[stoxmagic]

Thank you.

Henalopen,

"Analyst Models? Does anyone know if there are any analyst reports on SPNG showing estimates of future revs and EPS. thanks much for you responses."

Too early in the proceedings. Such coverage yet to come. In line with the fiscal '08 business plan/model realities. A serious ramping up on the marketing/promotion front. The NFE Conference seeing both Mr. Metter and Moskowitz talking, at length, regarding growth/expansion prospects. Projections. Guidance. Forward periods.

The coming audited numbers (August) representing the point at which worthwhile analytical coverage will get seriously underway. A major turning point for the company. Its shareholder base.

While, with regard to the fiscal '09 numbers estimates that were shared with the board today, we have the central point being cash flows from operations. The degree to which any for-profit company can dismiss obligations courtesy of ongoing operations. The understandable reality being that, to date, we do have a quality of earnings issue (no pun intended) to deal with.

The following:

Q1...

Issuance of common stock for fees, payments, advertising, etc… $3.3m

Q2...

Issuance of common stock for fees, payments, advertising, etc… $4.8m

Q3...

Issuance of common stock for fees, payments, advertising, etc… $1.6m

Total of $9.7m. Three quarters.

And the earnings picture in the absence of same?

Well, firstly, we need note the period-over-period reality. Numbers improvement. And, certainly, it's understandable that application of equity be part of the picture given the big picture. The recent surge in marketing/promotion. The numbers surge. Operations advancing toward the self-sustaining. Sufficient cash flows to dismiss obligations. The coming audited numbers to be telling. The quality of earnings situation noted. Continued improvement.

The overall situation fitting. The newness. The numbers surge. The average OTC startup/development stage outfit never seeing worthwhile operations emerge. Forced to apply equity massively and ongoingly. Shareholder value dismissed.

SPNG management having accomplished a truly Herculean task. The current operational reality. The timeframe. With both Mr. Metter and Moskowitz, via the Conference, addressing gross margin expectations in line with continued business plan/model implementation. On to 100 plus SKU's. The cash flows situation surging. Quality of earnings. Synergies. Economies of scale.

At the current cost of admission SPNG = no-brainer.

Everything considered. Big picture reality.

The coming audited numbers cementing said reality. A degree of welcome verification of that which the Conference addressed.

And as for today's market level action?

SPNG having performed precisely in line with the major markets/exchanges. And understandably so. But we did see, out of the gate, that which was technically signaled. The upside. The volume...

(Might have to cut & paste. Server issue.)

http://www.nasdaq.com/aspx/chartingbasics.aspx?intraday=on&timeframe=intra&charttype=ohlc&splits=off&earnings=off&movingaverage=None&lowerstudy=volume&comparison=off&index=&drilldown=off&symbol=SPNG&selected=SPNG

And collapsing in line with overall sentiment. Across-the-board.

Formal word to come. On a number of fronts. A certain meeting having drawn management's attention this day.

The Conference having been an excellent window into the quality of the company's management team. The salesmanship. The obvious capability. The obvious competence. The degree to which said parties are focused on building a very real company. Solid fundamentals. Solid earnings. Quality indeed.

The Conference, very obviously, having wholly succeeded in terms of the general message delivered. Drawing interest at the institutional level.

The coming audited numbers representing a major turning point.

The balance of our trading week to play welcome witness to industrial strength formal word. And inclusive, just maybe, of mention of a little 'creative' thinking relative to achieving the senior listing? Discussions? Negotiations?

Stay tuned.

The serious upside ahead.

Money in the bank.