Replies to post #161809 on Spongetech Delivery Systems, Inc. (fka SPNGQ)

[cashdenuts]

Why then not wait to PR that until after they are done then?

[macklacrosse]

Here is my take on what is going on right now...whether it is right or wrong i do not know (but i am pretty sure i am right):

To begin, there are very stringent regulations established by the SEC regarding companies buying back shares. Inter alia, one of these regulations stipulates that a company may only buy back shares at prices lower than the highest bid of the day. If you look at the day to day chart patterns lately, the pps very rarely goes higher than the opening bids (aka the highest bid of the day)which would allow the company to buy back shares throughout the day. Everyday after the initial morning drop, the share price slowly makes its way back up to the opening price, drops, and this pattern then repeats. In my opinion this is the company buying back shares... If people took the time to read and understand the strict guidelines relative to company buybacks (otherwise known as the "safe harbor" rule), and then looks at the recent intraday charts, it becomes plain as day as to what is really going on. THE COMPANY IS BUYING BACK SHARES LIKE THEY SAID.

Here is a hypothetical example: if SPNG opens at .14 and goes up from there, the company's ability to buy back shares would be extremely limited because of the regulation i explained above. However, if SPNG opens at .14 and drops down to lets say, .13(like it has been doing lately)the company is able buy back at any prices in between .13 and .14...