Replies to post #321175 on Spongetech Delivery Systems, Inc. (fka SPNGQ)

[pantherj]

Umm, what naked short position? Certainly not in this stock in which there is not, and never was, any naked short position. In fact, almost no shorting at all except for insiders shorting against paper before it cleared the TA.

[k9narc]

Short numbers are a joke.....I think a poster explained it best here.

"The FINRA daily short reports requires a broker to list shares as shorted when the broker hasn't completed the transfer of securities to the buyer's account by the end of the sale day. The security transfer is almost always completed within ten business days. However, when the securities are finally delivered, the daily report is not corrected. If you add the daily volumes and compare to the semi-monthly numbers you'll see the semi-monthly numbers are much smaller. See

http://www.otcbb.com/asp/OTCE_Short_Interest.asp



A high daily short percentage is typical of most penny stocks on the daily FINRA report. This just reflects the fact that the number of trades a given MM is involved with daily is small and the MM is representing the seller about half the time (and has to deliver stocks to another MM about half the time and so shows a short percentage of about 50% that day)."

[Jack Sun]

Obviously, there are too many shares in the market, SEC claims SPNG sold them, SPNG vs NYP claims shorts. Someone will have to cover sooner or later. If SPNG is doing as well as they say and they dumped the shares to the market, they will cover and they will have the funds. If those are shorts, MOASS is in order. Third option as you seen much on this board and one that can not be ignored is that SPNG is heading down - in that case, longs will loose all their investments.

That is my take. I bet on the second. There is shorts activity, and they will have to cover. I really gamble on it and the risk is there.

BTW. rumor is that the SEC can not supply the required evidence for indictment, so the case will be dismissed on Friday. Just a rumor.