This is for the longs.
I think we need to consider a few aspects before making a decision about this company and our participation in it.
Any growing company do so by investing money, to my knowledge, there is no other way in our capital system. This can be possible in many ways but primarily by loans (debt), stock options or bonds. SPNG decided to do so through issuing stocks going public; the company has invested a great deal of our participations in positioning the brand. Is this working? Well, it has grown in a ratio of 10 times year over year, and sometimes quarter over quarter. We see our investment all over the place, not only in advertising but also at new retailers and the company being able to fulfill an exponential increase in demand. SpongeTech is setting the platform to play with the big boys (NASDAQ); it can be perceived as we are losing value with a reverse split , A/S and O/S might seem like dilution, but can also be seen as potential resources to fund its growing plans. Maybe some would prefer debt; which is to be paid and will affect profitability. I believe is as simple as evaluating their strategy and deciding if it passes our sanity check and our own beliefs/understanding on how to grow a business. Right now this is a true investment which comes with all of what it means; we are putting money upfront for the future, expecting a return in the mid-long term. Where will SPNG be 2-3 years from now? There are plenty of penny stocks for quick bets.
AI
