Replies to post #153042 on Spongetech Delivery Systems Inc (fka SPNGQ)

[timetomakemoney]

How about Spongebob Commercials at the Movie Theatres?

[Kdub]

Right because we're all wrong. Crazy ideas make money.

[spongeboy]

Every home in america has a kitchen sink - and I'll bet 200 Million have the scrunge sponge with the scrub pad on one side - Wait til we start selling a kitchen sponge pre-loaded with soap thet doesn't mildew or stink and gets replaced twice as often - body sponges for nursing home and hospital sponge baths - babywash sponges - window sponges - cosmetic sponges - bronzing (one day tan) sponges - sponges for granite countertops - floor mop spongeheads - gojo style handwash - these guys are just putting the pieces in place for massive expansion - oxyclean sold for millions to Dwight Church with one product - we will have 25 products soon (per Noble conference) )we already have SKU numbers)) and 100 products in development.

[1jk1]

i,might agree with you but management is and are doing there best to reduce shares as we speak,a/s,o/s.Should limit any downside/pps.The slices of the pie are getting bigger as we speak. glta

[TradeWithFury]

clearly there has to be some serious dilution going on

Really? Why cleary dilution? So you think dilution is still happening? You might just be blown away by the 10k in a month then. GL.

[no_BS_plz]

I think the best PR is one that clearly states that the sponge 'delivery system' (really not a sponge at all) was basically 'test run' on cars, pets, etc. to see both the results of the product itself and the market reaction.

This is why a few people have advised that you probe a little deeper into the I-Box and why Carpe suggested so many other more household-oriented products in the pipeline.

Hope this helps you make a wise decision.

[thesource]

Excellent post and completely right on the money!!!!

[camper9]

I agree. But the question is, by whom? The Company has been buying back shares.


      ¶ clearly there has to be some serious dilution going on

[wbgiants1141]

All I'm saying is don't get put off of the company by what's out now... they've said that the best products are yet to come... with what they have out now they are simply testing the markets and getting the brand name out there so that marketing new products will be easier in the future.

[wadirum1]

What if the market cap rose to, say, $140mm. Can you swallow that? And what if the number of shares outstanding were 200mm due to RM holdings being retired and/or converted to a debt of under $15mm. All very reasonable, right?

Well, $140mm/200mm = $0.70/share. That would be a 5-bagger from here.

OK, I think the market cap could be a good bit higher than this (we already hit a market cap exceeding $200mm when SPNG was in the upper 20s). But what if we only get to a market cap of $50mm with 200mm shares? That would still be a DOUBLE from here (and it would leave SPNG at a price to sales multiple of under a half on the most conservative 2010 revenue estimates).

Ludicrously low valuations yield doubles, triples, or even 10-baggers so long as the O/S is low enough. Management has always said that they targeted an O/S of under 200mm as soon as they had a line of credit and as soon as they had the internally generated cash to retire RM's shares.

I am betting a TON that they do it.

Wadi