Spongetech Delivery Systems, Inc. (fka SPNGQ)

[fxchat]

As usual, the stock tanked after the news. This is a great sign.

Very similar to the first major run up. When the company announced record profit in MAY, the stock tanked first.



What we hope to see for a run up.

The squeezing of the bollinger bands. The stock will test lows of 13.7ct and then begin its climb to 17cts and consolidate, and closing at that level too.

Then the stock will start a major climb towards 24cts and retest 28cts before consolidating to lower levels again. And finally it will make a run up towards the 35cts region as that's the P/E of 10X on a EPS of about 3cts. Based on monthly earnings of 20mln and O/S of 500mln with profit margin of 10%.

Future plans of rescinding of shares would increase the PPS greatly. And that's what we are hoping too.

I believe in another year, the O/S should be at 200mln.