Replies to post #173710 on Spongetech Delivery Systems Inc (fka SPNGQ)

[huggarags]

The company has said We will not do a reverse split. They have proven over and over again that they keep their word. Even if it took more time to up-list they wont brake their word so what ever numbers you come up with your wasting your time it wont happen. GLTY and stay tuned more great things to follow.
Debbie

[Soapy Bubbles]

R95,

You need to read up on the nature of the beast you're discussing. Here's an academic research paper discussing your scenario.

http://www.efmaefm.org/efma2006/papers/568563_full.pdf

One needs to seek education before taking actions which may affect shareholders. This paper is just an introduction, but provides the counter to your proposal. In fact, I encourage all to read it.

[z4lover]

Where are you getting this...

with a reverse of 50 to 1 that would give us an EPS of $1 dollar a share...

Then you take the AVERAGE PE of the industry 17.1... and we would have a pps of $17.1... That's average, however the company is one of the top 30% growth companies out there... as per Reuters... we would much more likely be looking at a PE of 30-40 if that's what happens... ie 30-40 dollars a share... (kinda more than the 4 dollars needed imo) THIS IS AS OF TODAY if they did this...

And then you take into account next years earnings which we are on pace to do 48 million in earnings... that would give us a PPS of $82.08... with the average PE ratio of the average company... however it is much more likely to get a PE of 30-40... Which would give us a PPS in the $144 dollar range...

I'm sorry... but this is just an absurd suggestion that this is need... there is no reason to need a 144 dollar stock...