Replies to post #170949 on Spongetech Delivery Systems, Inc. (fka SPNGQ)

[RyanTH]

I can believe that... a mini squeeze with some covering only to establish more shorts in the .28 area. And then the numerous FTD's and Reg SHO listing that followed. That makes sense to me.

[happyguy72]

wadi... i left this same mssg with n_P_b late last nite... and i think we have spoke about it recently...

so for the sake of speculation sunday i will repost...

the run to 2851, i believe, was scripted by shorty as a mechanism to raise their avg... they had to spend a bunch to do it, but they were getting killed with the run initiated by the buyers from 03 to 08... shorty took over from there and ran it hard to 28 on heavy vol... and then... they precipitated a sell off designed to scoop up shares from long on the way down--scaring everyone and ripping out stop losses along the way... anyone wanting to buy was locked out on the way down.

as we moved from 03 into the 08 area , they had a decision to make... give up and get out, costing them tons right then and there; or re-entrench themselves and hope to gawd that something went wrong along the way for spng, allowing them to finally crush the company. Time is on the side of the shorts... most otc companies, at some point in time, screw something up that eventually hurts their business plan... very few EVER make it out of the otc... if shorty can just hang on... most companies lynch themselves at some point, and they can then pounce.

of course spng has created a very large problem for this logic... they beat the mold... they get to make the big time.

[no_BS_plz]

No question, and we would need to see the price that every single outstanding short share was shorted at to know an exact figure...an impossibility for anyone here, and a damned difficult task even by the shorters themselves.

But I most definitely agree with you, maybe not so much about the run up - I think that was band wagon jumpers more than anything, but nobody was shorting at that time which allowed it to run up naturally on supply and demand basis.

The .28 was hit and the shorters began working in full force. The math part of it confirms your claim that it then becomes an average rather than an original short position, similar to us averaging down when a price falls.

I have seen your posts so know you understand the math end, but for simplicity sake, let's say you are correct about the shorting at .28 and covering at .08. WOW!!! .20 per share to average down previous losing short positions. But that was one day of gain vs one year of losing propositions.

(BTW - for at least an example of confirmation, I put sell orders in at .275 and was not able to sell until about .21, then was not able to buy back in until just under .13, still a tidy profit, but nothing compared to the .20 that shorts were making).

I think shareholders have since become either 1)a little smarter about holding their positions and/or buying instead of selling when shorts try the same thing these days, or 2)the current shareholders have been around a little longer than back then and refuse to be taken in by those playing games.

One last point, and JMHO on this one...how about the SP falling on the day of the Dicon acquisition news. Having played pennies, and the market in general for quite some time, I can attest to the fact that this would have caused quite a run on any board. For SPNG, more air shares hit the market. What is up with that? And another reason I think SPNG mgmt really wants to stick it to those playing these games.

[bldshy]

I actually have thought of that as a possibility more and more lately. Maybe not totally running it up, as there were a lot of people who thought the train was finally taking off and wanted in, but I wouldn't put it past them to do any trick in the book though. They way we ran up so fast, after never trading normally before (or since), on really no news.

I think it could have been timed to do it then, after the impressive Noble conference, where you had investors finally getting a real eye on the company. As it started running, and having more and more people on board, bring it down in an instant, take shares out during the fall, panic selling happened (I am sure they saw all those stop losses) and make everyone wonder and get nervous about what the deal is with this company (even for the future.) Possibly losing big investors in the process, who would have bought in, but seeing that day...maybe saying "nah, not touching that for good, or until I see something that can confirm all they say (a 10K for instance?) I think Black Friday still has lasting effects on SPNG, that we still don't realize.

Which is why I do think there is waiting on the sidelines, until they see what we all believe will be in there. That explains the last week or two of trading. Anyone who is in and believes is in. Anyone who questions it, is out or just has a toe in the water. The non believers are waiting for it to show they are right on their claims (albeit out there ones.) The big money, wants to see what is really going on...especially after Black Friday. They, I am sure, have seen the continued record sales numbers, the Dicon purchase, etc but won't do much until they can get some sort of confirmation. The 10K comes out...Wow, the o/s is down to 500mm, the net income and sales are growing like crazy, etc etc. Then you start seeing the massive buying again, and this time if mgmt has whatever plan they have, bring it....and shorty and crew won't be able to stop it this time. Bring the monster PR's, one after another heading into and after the 10Q. The 10Q, will show this amazing growth of the past few months of FY10 in which sales is more than all of FY 09 already.

The 10K is your setup punch and then the 10Q can be the knockout. Bring some more news that we probably can't even fathom...bye bye shorty, bye bye basement and hello new deluxe apartment in the sky, Mr. Nasdaq.