Replies to post #170833 on Spongetech Delivery Systems Inc (fka SPNGQ)

[SirZ]

Phr,

Assuming that there were a large NSS position (let's say 500M or 1B, whatever the number may be), and they somehow tried to cover that during normal trading hours. I think by trying to buy any kind of large quantity that would cause the price to spike, at which point they have to walk the price down again.

If they do 500-1000 share transactions to walk the price down as a NSS, they might be able to achieve that. But how are they going to get the large amount of shares needed to cover? We know that large longs are not selling shares, so there wouldn't be anywhere to get them, the few shares that traders unload would be a low number.

So, in summary, I think the buying pressure they create by trying to cover shares would overwhelm any downward pressure they could create when trying to walk it down again, so that most likely the large NSS shares have not been covered yet, if there were some there to begin with, IMO.

[wadirum1]

Phrantic,

If you were so inclined (and had WAY too much time), you could look up my posts on this from around Sept 2008 on Yahoo. At that time, I though Doug Furth and Alaninvestor were full of $#%@ about there being a large short position. I've never made a dime from playing stocks on that basis (even when large short positions exist).

But how on earth can anybody make sense of the 4/16 figure of O/S=722mm? RM had at least 400mm of those, so there were only 322mm at most available to be owned. And of those, 55mm were buyback shares and 145mm were the affiliate transfer shares, so there were maybe only 100mm to be owned by the rest of us! The stock had recently been selling sub-penny -- at $0.01 someone could have bought ALL 322mm shares for $3.2mm. On top of this, I know a lot of people with large positions. And I can't imagine SM and other insiders weren't buying when it was cheap.

I really cannot believe that there AREN'T a ton of shares shorted in this.

I owned a company (I cannot give the ticker or my post will be deemed off-topic). That company had a small short position and I was surprised it hadn't been shorted more (it eventually went BK and the writing was on the wall). Well, one day the new (legal) short numbers came up and the increase over the 2 weeks since the prior report equalled the ENTIRE VOLUME of the stock over the prior 2 months. Logically, this could not have happened. So, I contacted management and they indicated that it was likely there had been a large (legal) short position that had not been declared due to a hedge fund exemption -- and for some reason they decided to make it public all at once.

Phrantic, I don't know. I am no expert on this -- in part because I think waiting for a MOASS is generally a bad investment idea. I know some savvy people to think there is no short position. But none of them can explain how all of the ownership fit within 722mm O/S on 4/16.

Wadi