Spongetech Delivery Systems Inc (fka SPNGQ)

[z4lover]

My responses are in bold.

1. The stock price would rally prior to the due date of the 10-K;

Yes it has, this is something that many people have claimed, and this is a bullish thing for the stock... Check out the price action prior to the last 10q to see what I mean

2. The 10-K will be delayed and the announcement will be made after the close next Monday;

I don't see why this would cause the price to go down at least not enough to justify risking the short position and or tying up over 3 million in capital for a short position

3. When that happens -- and it seems pretty transparent to me already that this is in the cards since Spongetech has already told you that they've fired their auditor, Robison, Hill -- the stock is going to fall off a cliff;

The company hasn't fired anyone. I think you have misread what the 8k said...

4. As previously stated in other messages, there's no way Robison could have completed this audit in time for an Aug 31 2009 release date in any case. The due diligence requirements associated with getting confirmation letters back in the mail from far-off places like Russia and South America make that completely unfeasible. Moreover, Robison is required to visit and kick the tires at Dicon since the Dicon acquisition is a material subsequent event for compliance purposes under Sarbanes Oxley. And since we all know that Dicon had shut its doors back in 2007 you have to have major questions about the quality of the audit work papers they had available for Robison when they showed up. Simply put, when a company shuts its doors, the first thing to go is the debits and credits guy since why do you need meticulous audit work papers when the barn is burning?

I don't think that you understand that we no longer use the pony express for mail. Ever heard of Fed ex or ups or DHL??? Lol to assume they can't get the audit done because of the mail system is very dangerous.

5. I have no economic stake in this company one way or the other now, though I will tomorrow. However, the main reason I've wanted to visit this board is to see if there was anything I was overlooking. There isn't. I still have yet to see one person who's a fan of this company make a cogent case, much less a compelling case, to own this company.

So let me get this straight, you are looking to make a possible 260 thousand dollars @ 1.3 million short shares @ .20 cents a share... if this goes to 0. And if your assumptions are wrong... and this stock goes to the proper value of 30-60 cents or higher what happens then? Let alone the fact that to put up such a position you would need to tie up at least $3,250,000 in capital.. Even if this went to 0 you can only make a possible profit of 8% of the capital tied up... Now let me ask you how you see that is a profitable or worthwhile trade