Spongetech Delivery Systems, Inc. (fka SPNGQ)

[happyguy72]

whoa...

on #2... keep in mind that spng has not relied on their share price to generate capital for ops or growth...

that is the beauty of RME...

most companies rely on the SP for this... so as a naked position 'steals' the overhead in the a/s and dilute the pps for the company, the company must then expand the a/s in order to inflate the o/s so that they can create ops or growth cash... this of course causes huge problems with the share base as they are being diluted from 2 fronts... but the company can realistically do nothing else except roll with it... the more shares they sell, the lower the pps and thus the more they have to create and sell to generate the same cash flow... a highly destructive environment...

spng however uses rme for this liquidity.... the o/s has been expanded from time to time, but really as a collateral source for an internal loan with rme... it became VERY obvious that rme holds these shares (and does NOT float them) with the release of the fy09 Q3 and a half a billion in share cancellations.

now... if the hydrophic delivery technology fails to gain a foot hold in the space, then... we would have a problem... but based on the Gianormous growth we have seen in such a short period of time... my bet is that it only gains market share from here.