Spongetech Delivery Systems, Inc. (fka SPNGQ)

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December 28, 2008 > SPNG Insiders CAN SHORT SPNG....
Carpedeim357 and others was hammering me over these posts
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=34437379

Now seeing what weknow today 10 months later, this post really opens my eyes.... From Same day > December 28, 2008
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=34439030

Take a read of this very recent lawsuit SEC lost in court, says you CAN short restricted shares, before they are free trading, before they are registered , SPNG has NOT yet registered millions of shares, those shares IMO are mostly short before they register them., It is very confusing and IMO a loophole of sorts , Shorting needs to be reeled in , it should be regulated, monitored and mostly done away with IMO...

Also in the filing That I noted I found this very interesting:

"....able to sell and deliver the shares in connection with those transactions or in settlement of securities loans"

Sounds like Non Recourse Stock loans? They (SPNG) can pledge shares well beyond the number of shares issued in the filing, if they make a sale of stock to a non recourse stock financeer, totally outside of the filing, that will give seller (SPNG) instant funds for shares they dont have yet , "on the come" type of transactions.... The financeers know they will get the shares down the line so they lend them monies for shares they really dont have yet and they can short them and wait for later registrations / distributions to cover the non recourse sales. Anyway , just something to think about.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=34439030