Spongetech Delivery Systems Inc (fka SPNGQ)

[wadirum1]

Overachiever,

Think about this, IF SPNG remains at 13 cents once it reaches its target of 200mm O/S, what will the entire market cap be?

The math is easy: 200mm * 0.13 = $26mm.

You are knocking the company because it is only doing the following:

a) selling the auto and pet sponges in mass retail
b) working with Viacom to get Spongebob into mass retail
c) owning Dicon, which supplies to big name shoe companies (as well as providing vertical integration)
d) owning Dicon for a modest cash payment, despite Dicon having invested $3.7mm in a new plant
e) working with an admittedly small-fry pinky on a stain remover pen

$26mm in market cap for this?!? Are you kidding me? Heck, they have much more than this in first quarter orders!

And you want MORE brand names for this market cap? Well, what if the Dicon bandage application proves lucrative? What about the sunscreen? What about the household cleaner, where they say they are working with the largest company in the business?

Is that enough for you? Show me another company at $26mm market cap with ANYTHING like this amount of major partnership activity and ANYTHING like this many irons in the fire.

OK, you'll probably respond that O/S 200mm is impossible. Well, think about it. What if they start with O/S=722mm and then convert RM to debt? Voila! We are there. Or, how about the share buybacks, which according to my calculations were not removed from the O/S as of the Q3 10q. Or, what about the affiliate transfers (145mm) that were also not removed from the O/S as of the 10q? Heck, what if we get some MORE affiliate transfers as well?

And what would the motivation be to make these reductions? Well, the fewer shares out there, the more valuable the remaining shares are. And what if they own more than the float (because of the shorting)? Heck, do you really think they didn't pick up, say, 100mm or 200mm back when the PPS was down sub-penny (total cost would only be $1mm to $2mm)... And do you remember BMAS? Heck, the value of their holdings would go UP as they retire shares and convert them to debt.

You guys are so totally hosed. But keep up the good fight! I admire the tenacity.

Wadi