Back for my third and final bullet of the day.
SpongeTech is halted for no other reason than because the management of SpongeTech thought they had responsibility to nobody.
If you read the SEC ruling, the halt was put in place because there were concerns about the accuracy of data in many different areas and these concerns were being raised by many people. M&M knew about these concerns but never trusted that anybody really cared.
Outstanding Shares. The company routinely filed 8-K’s talking about shares Authorized changing but never addressed O/S. The only time that SpongeTech did discuss the O/S they did so by referring back to what was reported months prior. Their lack of reporting this number was exacerbated when the forged documents issue surfaced, the change in TA surfaced, and the Gag order surfaced. Had these guys not publicly tried to purposely withhold information it would not have been a red flag.
Business Customers. Again, this issue was gaining huge traction. Business leaders on the up and up can’t afford such negativity. Metter and Moscowitz didn’t care about what the outside worlds was saying or doing, they just went about their business playing with stock shares. When Metter provided the NY Post with contact information that could not be verified it became yet another red flag the SEC could no longer ignore. It was now in public print that their customers were bogus and when a company does not respond it is considered a sign of guilt. All they had to do was come clean with contacts and the trading halt never would have occurred. They didn’t.
You people, long investors complained to the SEC. It was not just those from the outside or from short sellers. People who were underwater in the stock wanted answers and when they didn’t come they complained first to the company and then to the authorities.
As for Soapy, he was not alone here. There are snakes amongst you and they may be sitting there posting as your best friend. This is your investment with money you earned through hard work. SpongeTech was sold to you by people that befriended you while having the scoop on when a press release was about to come and what its intent was. People make money on such news and innocent people lose it. Having inside information on a pump and dump is having access to print money because you know the reality of the situation. Soapy admitted he had this kind of information in this forum and distributed it selectively while lying about negative news to all of you. He was your moderator and he restricted you from access to valuable and pertinent information by restricting the speech of those that had a differing opinion; he even admitted to that in a subtle way.
I can’t tell you whether SPNG will ever trade again as it does have a product, just not one with the sales you all thinks exist. And without knowing the true sales and without knowing the true O/S, you really don’t know what the value of this business really is. What I can tell you is that based on the price they paid for Dicon, Dicon was a distressed company with limited revenues. I hear it had outdated technology as well. If you are a manufacturing plant that manufactures product that yields $50 Million in revenues, your business revenues had to be well over $10 Million since the cost of manufacture is always a large percentage of manufactured goods. So why then does the company get sold for a mere $4.5 Million which includes a brand new $3.5 Million facility? Dicon acquisition enforces the lack or real sales taking place.
Sorry for being long winded but it is my third bullet.
Best to all for the day and for those who were innocent in all this you have my deepest sympathies. For the others, may you rot in #$%%.
