Spongetech Delivery Systems, Inc. (fka SPNGQ)

[loanranger]

FWIW, I think that the Pike purchases provide the single strongest piece of evidence supporting a long position. But who cares what I think, right?

re: "I also don't think the legalities of an issue like the one you describe would matter to him in the least. "
I can't speak to his willingness or lack thereof to obey the trading rules, but as far as filing rules are concerned
his history doesn't support your statement......I have not studied the details of all his beneficial ownership filings, but the following link suggests to me that he knows how and when they should be filed:
http://www.secform4.com/insider-trading/1365921.htm
Whether his filing integrity can be extrapolated to bolster his trading integrity isn't for me to decide.

re: "the greater motivation was to "affirm" to the share holders that the OS was still, supposedly, 722 million."
Frankly I don't know the profile, if there is one, of the ownership of this stock. But I think that it's logical to assume that institutional, versus retail, sized volume is what it takes to move a stock.....especially one bogged down like this one is. Do you really think that someone with Pike's background would expect to be able to "fool" institutional money with what is basically a ruse? I think that it may be a mistake to believe that his Forms 3&4 were filed for any other reason than Pike felt they were due.

re: "However, lets assume that since that time he has become aware that the OS is much greater, in the 2 1/2 - 3 Billion range as many believe, so that his percentage ownership has now fallen from 19.3% to under 5%. Bingo! Technically, he no longer has a beneficial ownership position and no control. He is thus, free to trade. And, i don't know of any rule (I am not by any means an expert) that would require him to file anything under those circumstances."
He is required to file a Form 4 up until and including any transaction that results in his ownership dropping below 10%. Fortunately, since I'm no expert either, Pike's latest Form 4's filed on American Dairy (link) provide clear proof of that statement. A series of sales that he made from 5/20-5/22 took him below the 10% level of outstanding shares that ADY reported on their most recent 10Q at the time (link). In the top left hand corner of the final forms filed by the 2 Pike entities is a little box that says "Check this box if no longer subject to Section 16.". And that box is checked on both forms. So I think that it is reasonable to expect that he is aware of his filing requirements regarding sales of SPNG shares.
http://www.secform4.com/insider-trading/1220289.htm
http://www.sec.gov/Archives/edgar/data/789868/000114420409026660/v148880_10q.htm

I could be wrong.....it happens.....but I see nothing that suggests that the Pike investment wasn't made with both eyes open and an expectation that the price he eventually sells the shares for will be higher than the prices he paid for them based on his own parameters of risk, return and valuation...as in an investment. In spite of the "environment", there's no evidence of chicanery. That said, I don't understand why he chose to add 40%+ to a position the minute an SEC suspension ended. He obviously is way out of my league in the cojones department.........and he may be up to something......but there's nothing in the record that I looked at to suggest it.