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[BuffaloBull]

I'm really shocked to see that there is no post yet for SPNG, but I guess I will be the first. Spongetech is a fairly new corporation that sells a variety of sponges with soap and wax already built into the sponge. They have sponges for washing cars, washing dogs, general washing, bathing sponges, and they are supposedly creating some sponges for hospitals in light of the swine flu outbreak. They are estimated to last 8 or more washes for cars. I know if this is the first time hearing about this company, it sounds quite dumb to invest in a company that makes and sells sponges. But it looks like it may be much bigger than expected.

Why Care???
-Spongetech released its 10-Q for date ending Feb. 28, 09 and had a total revenue stream of 13 million compared to the same Quarter a year earlier of 1.2 million

-They have recently made some very big retail alliances with Petco, and there is word that alliances with Walmart could be in the future
3 « April « 2009 « SpongeTech - Press Releases

-It recently just finished its newest sponge product, SpongeBob Squarepants Kids sponge that will be in retailers within 60 days. This should create a new market for them onvtop of the growing one they have for car sponges.
SpongeTech America's Cleaning Company

-If the current sales rate continues this could be well over a 100 million dollar in revenue company within a year for a penny stock

WHAT YOU NEED TO KNOW

Current Price: .0205 as of (5-4-09)

-Holding Time- Short or Long, but it definitely has Long Term Potential

-I rebought in at .025 after making a fair profit about a month ago

-I wouldn't buy above .03 as there could be resistance even if it breaks it soon

-I expect it to skyrocket to .03 or higher and then swing back down within the .02-.025 range

-I expect it to break .03 within 2 weeks but suspect it will fall again after it does.

-I strongly don't suggest shorting this one as its really perceived as a bullish stock right now.

-The profits could be quite large in the short or long run, It's really bullish right now with all the great PR and financial s (link below) but its a it definitely a long run winner in my opinion.

- I plan on setting a trailing stop assuming it breaks .03 cents, the trailing stop will be set at .002 or .003 if it gets higher

-If you are considering buying and the price is above .026 you may want to wait for the next swing because I expect there will be one but I don't think it will go back down to .015 like it did last time about a week ago.

-Estimated profit 33% or greater within the next 2 weeks

-In the long run it could be much much greater

Warnings-

-The company has a little over 700 million shares outstanding right now, but the company has recently begun buying them back.
SPNG.OB: Key Statistics for SPONGETECH DELIVERY - Yahoo! Finance

-The company has recently increased the authorized capital stock to 1,800,000,000 which is incredibly high, they say it's for legal reasons but it could be dangerous if they really wanted to dilute it .
Summary of SPONGETECH DELIVERY SYSTEMS INC - Yahoo! Finance

-There was also a rumor in some forums of a reverse stock split but I have yet to hear anybody verify it

-Net income is low this quarter because it is their first quarter paying taxes

- Also operating expenses are high most likely as a result of mass marketing and advertising as it is in the growing stage right now

If you guys have anymore questions, just ask, but a lot of this information is really easy to come by.

SpongeTech, America's Cleaning Company

[chuckd]

Bill, this stock like your other one PGYC is a favorite of the penny pump sites. And while

I dont want to seem like I am discounting your posts, I think that folks need to know

when the pump and dump sites are promoting a stock. This company had great quarter

because of an infomercial campaign. I dont think that they will have near as many

repeat sales without running another massive advertising campaign. If their product

really last for eight washes, it will be next year before a lot of their customers would

need to buy another one. The crazy high number of shares is another concern.

You have done a pretty good job with your warnings on the company, just thought

I should add that the pump sites are on this one. Be careful!

[BuffaloBull]

Update- SPNG is at .0262 as of May, 13 Closing

If you got in at .020, awesome. I would put a hidden stop at .026 or maybe a trailing stop at .024 as It may break .030 but I'm not sure. With such a high volume today, I think it will at least launch at .028 in the morning. That tends to be a trend for penny stocks. I'm not sure if you want to buy in right now though as it will probably swing down again in about a week.

[bondo26]

IMO I don't think this is a good time to get in. I have followed SPNG as well and as previously stated it does swing. I can see a sell off coming pretty soon. I will be jumping back on board when it goes below .02. When they report there next quarter report and the ones after this stock will gain more momentum. They have no debt and are making money. Not to mention they have a licensing agreement with Viacom to use SpongeBob, Dora the Explorer, and Go Diego Go. They also have an agreement to use the Pink Panther. I think there is a good upside with this stock.

[spacepenguin]

Ended the day at 0.0368. I was trying to get in at its low at the end of April (<0.015) and now I'm banging my head. However, I can still see this being a good entry point. Any other opinions?

edit: Read the post above mine. I have seen this stock swing quite a bit, too. Maybe not a good entry point? Heh.

[BuffaloBull]

Sweet, my 1st stock prediction was correct and is now up 80% from my call. But Ya spacepenguin I don't think it's a good time to get in right now. It's bound to fall on monday and tuesday. I'd wait again for a downturn and prepare for the quarterly report in a few weeks. Does anybody know they specific date for the next SPNG Q-10? I'm not sure where the next support will be.

[chuckd]

Congratulations on your gains Bill, I just wanted to say that I am still

seeing their ads on TV, so I assume orders are still coming in. I dont

know how long it will last, but if the ads are still running it usually

means the product is selling. I want to remind everyone to set their

stops to protect their profits.

[BuffaloBull]

Update May 27th. You should definitely wait a long while after the news, spng just increased its authorized shares to 2 billion, Summary of SPONGETECH DELIVERY SYSTEMS INC - Yahoo! Finance . I have no idea what this company is thinking. Could there be any logical business reason for this? Does anybody have any thoughts?

[bondo26]

All they did was increase
the ammount of issuable shares. Like they said they were going to
do. There is still only 722 million shares outstanding just like
there was yesterday and the day before. If you read everything
correctly it goes like this. On Feb 2 they released a letter
annoucing the retirement of 230 million common shares. Half of the
common shares available. Bringing the total number of shares down to
722 million from roughly a billion. RM Holdings owns 480 million
preffered shares of these and there is about 242 million common shares
breaking down the outstanding shares. On March 18 they put out a
press release saying they petitoned the state of Delaware too increase
the ammount of authorized common shares from 1.25 billion to 1.5
billion. So doing the math at the time of those releases they were
authorized to have 1.25 billion common shares minus the 242 million
common shares outstanding. So they've always had just over a billion
common shares they could release. So adding these all together at the
time of March 18th they had 1.25 billion common shares plus the 480
million preffered shares. What does that equal? 1.73 billion
shares. What did they say they had. Roughly that: 1.86 billion to be
exact. So if you add in the the fact that they were going to increase
the authorized common shares from 1.25 billion to 1.5 billion you are
adding on about 250 million authorized common shares. 1.86 billion
plus 250 million equals 2.1 billion. So if you you actually look at
the press releases and numbers nothing has changed. All they did was
increase the ammount of shares they are authorized to sell. They were
authorized to sell a billion more before the press release. Do you
really think they are increasing this to dilute the shares? They hold
a ton of these themselves and stand to lose a lot with dilution. How
much do the M and m brothers hold? Something like a million a piece.
They'd be retarded to dilute that. All this is is a just in case type
of thing. They just retired shares and that costs money and time.
Why would they retire them only to issue more a month later. My two cents on
this.

Please let me know if I am off, what do you all think?

[BuffaloBull]

I agree with you, they would have to be retarded to issue more shares as they do have a large stake. But what my real question is why would they even increase the number authorized? What purpose does it hold? If you are finally becoming profitable, and expect several million a month in profit every month. Why increase at all? In fact it would be more logical to change the bylaws stating that there will be less authorized shares as they finally don't have to worry about gaining capital now that they are profitable. No growing company that I know of has 2 billion authorized shares. I still like the company, it's just the last move I would of thought they'd make. I'm not saying they will issue more shares, but technically a month ago the price was at 2 cents and now its averaging at 4. So if they did re-release the retired shares they could make twice what they spent to retire them. I was really asking was their any strategic reason besides potentially diluting for increasing the authorized share amount? I was really expecting them to reduce the amount of authorized shares, not increase them.