Spongetech Delivery Systems Inc (fka SPNGQ)

[Y2KMavin]

The outstanding shares are somewhere near 700 million. They have stated they intend to get them down to 500 million and may have alread done so. In prior announcements they disclosed $50 million in sales and $10 million in earnings for YE May 2009. If that holds up and they should earn between $1.50 and $2.00 for last year after the split. It depends on whether they have been able to reduce the shares outstanding to 500 million as they were trying to do. I think 100 to one is over kill. They could have gotten on the Nasdaq with 25 or 50 to one. Never the less, if you think they will have sales in the 250 million range for 2010, then they should earn something like $4 to $5 with a 15% net margin. The cost of production for these sponges has to be under $.25 cents. That leaves lots of marketing dollars. Stock should be $20 to $30 after the split or perhaps even higher.