Replies to post #173799 on Spongetech Delivery Systems Inc (fka SPNGQ)

[Rocket Rider]

The huge short position is not legitimate Shorts but illegal shorting via NSS (Naked Short Selling)...
www.businessjive.com will explain the whole story... but long story short, crooked MM's have been using NSS to make a ton of money off of pretty much any OTC stock that has a smidgin of success... they do this by selling shares they don't own at a high price and this floods the market with phantom shares which then causes the price to sag since all the buying is soaked up with the fake shares, asks never get hit and the sellers, however few they are, remain... HOWEVER, eventually the MM's are forced to cover their phantom short sales by actually purchasing back the stock they already sold, this causes a Short Squeeze. We KNOW NSS is happening to SPNG by looking at the FTD data from the SEC website AND since it is on the Reg SHO list.
Conclusion: MOASS coming soon! HOld on, cuz this rocket is launching!

[wadirum1]

Evidence for a large short position?

Well, your numbers only give legal short positions, and hedges with legal short positions can dodge the reporting rules. And then there are less legal ways to short.

But I don't want to get into all of that -- because it involves lots of speculation. Let's stick to facts:

On April 16, SPNG had 722mm shares outstanding. Of those, maybe 450mm were RM's and 26mm (off the top of my head) were owned by management per the 2008 10k. That left about 250mm shares available to be held by management, employees, and the rest of us.

Doug Furth says he owns more than this (300mm). We know that he filed a 13G for 41mm shares he holds in his Signature Fund.

The market maker BMAS (reputed to be buying for SM/SPNG/RM) only ever showed up on the bid and bought something like 100mm shares.

The stock traded sub penny, enabling folks who believe in the company to buy mammoth positions. Heck, at one point 200mm shares only would have cost SM $1.6mm...

There have been "affiliate transfers" of stock to the company for retirement -- these are people buying up shares and giving them to the company to reduce the O/S (149mm as of the Q3 10q). Now, you don't see THAT every day...

RM can buy unrestricted off the market (the numbers we have seen do not account for those shares).

I know of a ton of folks who own 3mm or more shares. Our moderator appears to own a few himself (LOL). My quixotic "Poor Man's 13G" campaign turned up 100mm good until cancelled orders of $1 or more...

And SM said there were 7,000 shareholders (in May).

The volume is insane in light of these long-held positions.

Now, how about you tell me how these shares all fit within the O/S?

Wadi