Replies to post #337971 on Spongetech Delivery Systems Inc (fka SPNGQ)

[BMK]

Let's pretend we are all novices here and think about this very easy-to-understand scenario.

I am a hedge fund or other institutional-type investor able to short penny stocks at a much less expensive fee than small-time investors/traders. I learn about a scam and see the scam coming to fruition as national advertising commences, knowing full well the 10K is bogus. What a perfect time to short as PPS rises. Then I make one call to a newspaper reporter known to have connections in the securities industry and whisper in her ear. Then I whisper in the SEC ear, who are obliged to act upon these whispers.

Crooks are exposed and due to DTCC lacking either the wherewithal or the balls to reconcile the trades, and the SEC allows a security to remain on FTD for months, let's face it, have short interest is nothing short of counterfeiting. Hell, if I was a hedge fund, or anyone with ability to short penny stocks at a small fee, and if I had no conscience, I would jump on that deal everytime.

[camper9]

A rather sweeping generalization for which no basis in fact is offered.

I have IOUs in my brokerage account for a stock that has less than 650,000 shares on deposit in street name at Cede & Co. Yet there are other shareholders who have tens of millions of IOUs for shares of the stock in their brokerage accounts.

Where are the street name certificates for those tens of millions of shares?

Cede & Co has less than 650,000 shares on deposit, shareholders in aggregate may have more than a billion shares of IOUs in their accounts. How will the brokers resolve this?

How will the brokers resolve their imbalances with SPNG?

Maybe they hope they can have the SPNG stock revoked, and the problem will just go away? Wasn't SPNG supposed to be revoked before Labor Day 2011? What happened? Didn't things go according to plan?

This all leads me to think that NSS is not a conspiracy, but more of a rationalization of bad behavior in the stock market, over and above any such behavior on the part of the SPNG execs.

that's because NSS in penny stocks is nothing more than a conspiracy peddled by scammers and perpetuated by their victims.