Replies to post #330398 on Spongetech Delivery Systems, Inc. (fka SPNGQ)

[starfire]

Let me address REFCO first....your research is shallow but Refco has been involved in NSS actively, be it Bonds, Equities or Derivative contracts..............for starters here are some links...I am not going to rehash everything that I read about Refco and it really is irrelevant to me if you believe my statements or not as it has been a while since I did my research....................

http://www.thesanitycheck.com/BobsSanityCheckBlog/tabid/56/EntryId/261/Weekend-Update-Milberg-Guilty-REFCO-Revelations-CXN-Firestorm.aspx


http://en.wikipedia.org/wiki/Refco


I consider Refco Holdings Group and its subsidiaries as one entity.

[Virtual Drew]

It's important to point out: a corporation's stock price does not make it go bankrupt.

The securities price has nothing to do with the fact a company can be self-sufficient marketing and selling it's products and services (unless of course, the company is in the business of selling shares only!).

In SpongeTech's case, they were claiming $50M revenue in FY09, and $20M revenue in FY10's first quarter. They fraudulently asserted they were extremely self-sufficient--selling a sponge.

How, exactly, does a crumbling share price BANKRUPT a company?

Why is it, when Ch 7 or Ch 11 ensues, a trustee is assigned and his/her role isn't involved with a corporations securities or its shareholders?

I suggest a corporation's bankruptcy causes the stock price to crumble, not the other way around!

[SRV-90]

Great stuff LR. Useful links rather than blogs that have no credence at all.

Cheers

[pantherj]

Wait a minute! Wasn't it because of their mastery of "Due Diligence" that these people bought shares in the first place? Weren't we told over nd over again that they had done the DD and their DD made it obvious SPNG was a huge winner?

In the EXTREMELY UNLIKELY event that the cases and hence the assets of Dicon and Spongetech are combined and offered for sale, I'm itching to see how those "significant purchase price" bids stack up. However they do stack up, it's funny to think that the prospective bidders have an interest "subject to due diligence"...as if there hasn't been enough of THAT.