Replies to post #178518 on Spongetech Delivery Systems, Inc. (fka SPNGQ)

[miami_vice]

Only thing I would add to this is that scottrade shows a P/E of 18.5

8^)

[ezey]

Spongebob= I am so sure of this posability that I have moved my retirement portfolio 80% into this.

I would be ALL IN if I had less fear of my wife's reaction.
I will let her know when 1 million becmes 100 million and I ask her for advise on choosing charities to support.

[RyanTH]

Great facts! Very undervalued. I like your estimates too, holding for the long run!

[Fishforbreakfast]

Hello, Spongeboy.. Your numbers are actually very realistic.

Events are coming to clean up the Naked Short Position and get the share structure in order. A Good Chess Player always has a good plan and is one step ahead of an opponent.

I honestly feel the Naked Short position is in the 1.5 Billion shares range. How high can the PPS go as some start to cover by choice or by force liquidation of assets used as collateral.

Remember if these Naked Shorts receive margin calls from the Broker who allowed the short sale and they do not put up more $$.. That broker will sell out any other positions they have to protect themself's first and ask questions later..

Sideline Money Institutional and Mutual Funds are watching and waiting for the Audited 10-K..The Audited numbers are needed for the Compliance Departments of these Big Money Players.

Remember this and it's very important. Most Mutual Funds and Institutional Investors are not going to buy OTCBB Stocks.
The vast majority of OTCBB stocks never make it to another bigger more respected exchange because they do not have a rock solid plan of action to get off the OTCBB Market..

However SPNG is much different.. They have a real growing rock solid business that is growing leaps and bounds. Audited Numbers says these guys are for real..

In addition, forward looking statements will address future plans. I feel this company will be trading on the Nasdaq before this year is over with.

Why because the company is for real.. They are making money and building a National following in the process.

They are going to use the leverage they have over the Naked Shorts to clean up the share structure once and for all.

The company in my opinion has a real plan that will Increase share holder value and get the float in the hands of strong minded investors who are more focused on the longer term prospects than the day to day swings in the PPS.

A future event is going to call for a share count via a Cusip Change.. Then it's over for the Naked Shorts.. Plan and simple.
The real float is gone.. Strong hands hold what the Naked Shorts are going to need..

Now the question becomes what are you willing to sell your shares for. How much temptation can you handle..

Remember the end goal. A listing on the Nasdaq.. Look at the upcoming numbers for 1st Quarter 2010.. Those projected numbers with 400 Million O/S should get the PPS in the $6-8 Range.. How high can the PPS go in a mad dash as the shorts cover. Who knows I have heard all kinds of numbers..

For now I will sit back, Trust Management to do what is right for shareholders and to gain back control over the Naked Shorts. Then you can look forward to several years of exceptional growth and earnings. All MOO.. GLTA- FFB-Fish

[harvard homeboy]

<< If the O/S on the 10k is 500M (worst case) ... >>

Then that suggests that last Friday (Aug 28) 29% of Spongetech shares traded hands, since the trading volume that day was 144 M shares.

Which isn't great news for those who are fans of this company since it means everyone's going to be heading for the exits at the same time when some bad news comes out, which is going to happen soon enough, like tomorrow after the close.

[tturner617]

SpongeBoy--your thesis on price per share is valid if this Co's, PE EVER followed conventional wisdom. I've been buying this stock for the last yr, and have gotten most of my shrs when the PE was BELOW 1 and a PEG at about .1. My point--a PE of 15 (trailing) should be right as a conservative valuation--but hasn't traded there for any period of time. Hell, IMO a fair valueation should be based on the PEG (price = Earning x Growth) and most analists use a growth rate of 35 when coming up with a 5 yr forcast for Co like SPNG (earnings in the J curve) even when earnings are growing at 400-800%. If that metric was used, "fair value" would be a PEG between 1 and two, with a PE between 35 and 70. Will we ever atcheive those valuations and price multiples? IMO, only when we get to Nas. When will that come? 6 mo? 1 yr? 2? Who cares, it will come and who can argue with a 10-50 bagger in a yr or so. This is still a buy and hold, with hair pulling frustrations based on trader minipulation and volitility.