Spongetech Delivery Systems, Inc. (fka SPNGQ)

[el_loco09]

A question about NSS

I've been lurking here for awhile now and decided to jump in. I found out about iHub from the Ragingbull forums. I'm here for the fundamentals. I think $SPNG is undervalued at this level based on sales and growth. I'm skeptical about the NSS and have some questions.

1. How does an entity make money with NSS? If you short the stock and never cover where is the money for you?

2. Why would any broker collude with someone to do NSS? Seems like the broker is taking the risk. Isn't it the case that a broker will ask for a margin call when you are short and if you can't send more cash he will liquidate your position in order not to lose money?

3. Don't you have to cover at some point to make any money? So, how do you win if you drive a company into the ground and no one is left for you to cover with?

P.S. You can add my 500,000 shares to the count - I'm determined to hold at least until the release of the 10k and I'm disappointed it's late.