Replies to post #176557 on Spongetech Delivery Systems Inc (fka SPNGQ)

[Soapy Bubbles]

Angusburger - lol. You're entertaining. Just buy your shares and lay off the phone.

[SRV-90]

Well, considering they acquired Dicon AFTER the fiscal year R&H does NOT need to do an audit on Dicon. That will be handled by D&T and they will have PLENTY of time to work on that.

As far as your other statements, BORRRRRRIIIIINNNG

[z4lover]

My responses are in bold.

1. The stock price would rally prior to the due date of the 10-K;

Yes it has, this is something that many people have claimed, and this is a bullish thing for the stock... Check out the price action prior to the last 10q to see what I mean

2. The 10-K will be delayed and the announcement will be made after the close next Monday;

I don't see why this would cause the price to go down at least not enough to justify risking the short position and or tying up over 3 million in capital for a short position

3. When that happens -- and it seems pretty transparent to me already that this is in the cards since Spongetech has already told you that they've fired their auditor, Robison, Hill -- the stock is going to fall off a cliff;

The company hasn't fired anyone. I think you have misread what the 8k said...

4. As previously stated in other messages, there's no way Robison could have completed this audit in time for an Aug 31 2009 release date in any case. The due diligence requirements associated with getting confirmation letters back in the mail from far-off places like Russia and South America make that completely unfeasible. Moreover, Robison is required to visit and kick the tires at Dicon since the Dicon acquisition is a material subsequent event for compliance purposes under Sarbanes Oxley. And since we all know that Dicon had shut its doors back in 2007 you have to have major questions about the quality of the audit work papers they had available for Robison when they showed up. Simply put, when a company shuts its doors, the first thing to go is the debits and credits guy since why do you need meticulous audit work papers when the barn is burning?

I don't think that you understand that we no longer use the pony express for mail. Ever heard of Fed ex or ups or DHL??? Lol to assume they can't get the audit done because of the mail system is very dangerous.

5. I have no economic stake in this company one way or the other now, though I will tomorrow. However, the main reason I've wanted to visit this board is to see if there was anything I was overlooking. There isn't. I still have yet to see one person who's a fan of this company make a cogent case, much less a compelling case, to own this company.

So let me get this straight, you are looking to make a possible 260 thousand dollars @ 1.3 million short shares @ .20 cents a share... if this goes to 0. And if your assumptions are wrong... and this stock goes to the proper value of 30-60 cents or higher what happens then? Let alone the fact that to put up such a position you would need to tie up at least $3,250,000 in capital.. Even if this went to 0 you can only make a possible profit of 8% of the capital tied up... Now let me ask you how you see that is a profitable or worthwhile trade

[camper9]

Releasing the 10-K after the close next Monday (the 31st) is still 'on time'. Why do you see that as an issue worth mentioning?


        ¶ The 10-K will be delayed and the announcement will be made after the close next Monday

[no_BS_plz]

Having been on the SOX implementation team at the publicly held company that I work for, I can assure you that "kicking the tires" at Dicon will take a minimal amount of time, and that the only books an auditor would check would pertain to Tangible Assets (ie: PP&E and inventory).

They would check the physical inventory or accounting system showing how the inventory is accounted for, applied depreciation, etc.

I assure you Dicon could practically fit inside of one of our board rooms (figuratively speaking), and PWC spent a total of two weeks doing all necessary due diligence for Sarbanes Oxley requirements on all of our assets, both here and abroad.

I didn't know a "barn was burning" with Dicon, but that can be handled in a couple of hours by checking the debt assumption by SpongeTech and nothing more to it than that, especially given the fact it was a cash transaction.

They also checked our internal audit process, lasting a total of about a week, but as the nature of the critical path in doing a project is concerned (which is the longest time to complete simultaneous tasks within the overall project), our complete audit with PWC lasted less than a month and that included our overseas operations.

If you have facts that differ from mine, I would be happy to debate the subject.

[spongeboy]

My first direct reply to Harvard Homeboy

I think auditor Robison Hill was hired to do a forensic accounting audit (read their website they specialize in this for criminal investigations for the FBI) to quickly merge Dicon and get the 10k in early (the 10k was done before the PR announcing Deloitte Touche)
As of next Tuesday, Deloitte Touche is our firm, which is amazing if you know who they are. Further Robison Hill investigated the large naked short sale position confirmed by RegSHO list, Bill Young, and buyins.com for possible evidence into criminal short sale activity depressing the stock price for at least 2 years. Deloitte Touche would have never allowed a PR unless the 10k was done and reviewed by them, which was days ago. Deloitte Touche does not do OTC stocks they do Nasdaq and NYSE which is where we are going. The squeeze will be brutal - cover before .24 and stop bashing. JMHO -

If you are new to spng read the ibox !!!


Posted by: harvard homeboy Date: Thursday, August 27, 2009 8:01:04 PM
In reply to: Soapy Bubbles who wrote msg# 176552 Post # of 176643 [Send a link via email]
<< You've already maxed your short position long ago. >>


I've been completely consistent all along in what I've said. And what I've said is that:

1. The stock price would rally prior to the due date of the 10-K;

2. The 10-K will be delayed and the announcement will be made after the close next Monday;

3. When that happens -- and it seems pretty transparent to me already that this is in the cards since Spongetech has already told you that they've fired their auditor, Robison, Hill -- the stock is going to fall off a cliff;

4. As previously stated in other messages, there's no way Robison could have completed this audit in time for an Aug 31 2009 release date in any case. The due diligence requirements associated with getting confirmation letters back in the mail from far-off places like Russia and South America make that completely unfeasible. Moreover, Robison is required to visit and kick the tires at Dicon since the Dicon acquisition is a material subsequent event for compliance purposes under Sarbanes Oxley. And since we all know that Dicon had shut its doors back in 2007 you have to have major questions about the quality of the audit work papers they had available for Robison when they showed up. Simply put, when a company shuts its doors, the first thing to go is the debits and credits guy since why do you need meticulous audit work papers when the barn is burning?

5. I have no economic stake in this company one way or the other now, though I will tomorrow. However, the main reason I've wanted to visit this board is to see if there was anything I was overlooking. There isn't. I still have yet to see one person who's a fan of this company make a cogent case, much less a compelling case, to own this company.

In any event, I guess we'll just have to kick back and wait and see what happens.

But believe who and what you wish.