Spongetech Delivery Systems, Inc. (fka SPNGQ)

[loanranger]

dog.....Even smart guys make mistakes.
But first: I could watch those penguins all day.....and some days I'd be better off if I did. Thanks.

I don't like the guessing game much, but with Pike that's all we have and all we may ever have. You've mentioned that the issuance of a 10K might provide an answer but I fail to see how. Please explain if you get the chance.

An alternative theory....just for fun and 100% speculation:
Somebody got his ear....or he gave his ear to somebody. His portfolio includes companies with troubled histories and he has made money chasing high risks before. He established a position of 100,000,000 shares by 9/28/09, with the average share math suggesting that a portion of those shares were purchased before 9/14 and at an average pps of $.138:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=45348177

So at least some of those shares were bought before the Post articles, the formal investigation commencement, the failure to file the 10K by the extension date, and obviously before the suspension and the letter threatening otcbb delisting. FWIW, the company announced the "appointment" of Deloitte & Touche LLP on 8/24.
I wouldn't have bought 'em, but.....

So at that point he had made a commitment. His history does not show him to be a trader. He apparently felt that he had uncovered a unique situation, because as you and I know the long term recovery rate from a 10 day suspension is abysmal....it rarely happens. Yet, not "soon after" as you indicate, but the very day that trading resumes he proceeds to go on a buying spree that lasts through the trading week, increasing his position by some 40%. At prices ranging from $.031-.063.
http://sec.gov/Archives/edgar/data/1201251/000101359409001621/xslF345X03/spongetechfm4-102909_ex.xml

He has averaged down before. I sure wouldn't, but....

Apart from another small buy he filled out to his current position on 1/6 and 1/7 at $.037-.04.
http://sec.gov/Archives/edgar/data/1201251/000101359410000014/xslF345X03/spongetechfm4-010810_ex.xml

Here's where my speculation may go over the top some:
On 1/14 the Post reported a suit by the NY Mets "that alleges the company stiffed the ballpark out of $300,000 owed for stadium-related advertising by sending them a bum check and then promising a wire transfer that never came."
I believe that a poster may have reported that suit a day earlier, but in any event it was around this time that the first public sign that the company's problems might extend beyond the regulatory and into the realm of operational cash appeared. The RME support structure ("investment arm") chipping in a stop payment notice.

If Pike was operating as my speculation suggests, this may have taken his risk/return ratio to a new level...it would have mine, for sure. One can play word games with a lot of stuff, but not cash position. He hasn't bought since....and I wouldn't be surprised if he doesn't buy again.

Don't lose those penguins.

ps. Just for the record:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=45823856