Replies to post #30951 on Spongetech Delivery Systems, Inc. (fka SPNGQ)

[snakecorleone]

Crash, I agree on the Reg Sho... That is the one thing I find completely amazing. We will see come 10q, most all of the questions will be answered.

They PR'd they are basically done buying back the 50million, you had to have read it. So, once again. The "stupid" lies would know no limits and really just be the worst PR decisions in a history of a company.

So, lets say they are telling the truth. Cash flow is positive and things are catching up. Fact is, it would not take much money at these prices to pick up 50million shares, so lets agree, they didn't lie, for arguements sake.

The 10q, should show a lowering of the float, whether that happens or not, will be key. If the float numbers increased, well, then, some shareholders are going to be pissed and the stock will probably go down or continue the current narrow trading range.

You would have to agree, if the company is telling the truth, and they lower O/S, improving fundalmentals will make the stock price go up regardless of a short interest, if in fact there is no NSS.

[camper9]

From the SEC website ( http://www.sec.gov/spotlight/keyregshoissues.htm )

1. Is all naked short selling abusive or illegal?

When considering naked short selling, it is important to know which activity is the focus of discussion.

Selling stock short without having located stock for delivery at settlement. This activity would violate Regulation SHO, except for short sales by market makers engaged in bona fide market making. Market makers do not have to locate stock before selling short, because they need to be able to provide liquidity. However, market makers are not excepted from Regulation SHO's close-out and pre-borrow requirements.


Selling stock short and failing to deliver shares at the time of settlement. This activity doesn't necessarily violate any rules. There are legitimate reasons why a seller may fail to deliver on the scheduled settlement date.


Selling stock short and failing to deliver shares at the time of settlement with the purpose of driving down the security's price. This manipulative activity, in general, would violate various securities laws, including Rule 10b-5 under the Exchange Act. Regulation SHO does not address this issue.


(emphasis mine)



      ¶ Why is SPNG not on the REG-SHO list if it had such a massive naked short position?