SPNG-SpongeTech

[rdooski3]

For folks new to this stock or investing it is sometimes a little
difficult to filter through all the crap and understand what is real
(good or bad) so you can make up your own informed decision --
otherwise known as due diligence (DD).

They key here for both sides of this argument is providing proof of
the claims and predictions everyone loves to throw around.


The bottom line for the bulls on this stock is the company
fundamentals. Those are facts. Dramatically increasing orders and
revenue shows the products are selling. Expansion into the global
market shows growth and increased exposure. When the 10-K does come
out, it will show $50+ million sales in SpongeTech's 2009 fiscal year
(June 1, 2008 to May 31, 2009) - compared to $5.6 million in 2008.
Those are facts. The CEO has already stated they will blow away their
$40 million estimate for 2009. Contracts and orders with Shop Rite,
Walgreen's, Ace Hardware, CVS, Kroger's and agreements with Viacom for
SpongeBob, Dora the Explorer and Go Diego Go! are facts. Viacom
themselves projected sales of $20 million for SpongeBob alone for the
first year.


The facts are that SpongeTech had $18 million in orders for June (a
company record) and already have $11 million in orders for the Month
of July (at mid point). Those are facts. That shows their growth
continues at a very strong rate. CFO/COO Steven Moskowitz stated that
they expect their growth to continue at the rate it did in June. Well
that is still speculation. But no one here has a better view into the
inner workings of SpongeTech than Moskowitz and Metter. So even if
they are off in their estimates and they only average $10 million a
month for the next year, that still puts them at a healthy $120
million for fiscal 2010 - more than double 2009. Again, that is
speculation. But it is speculation based on a dramatically reduced
estimate from Moskowitz's considerably informed estimate.


I would also agree an increase of Authorized Shares (not Outstanding
Shares) to 2 billion is also a fact. And that fact does bother some
people. However, a key fact that keeps those of us who are positive on
this company and its stock is that SpongeTech has already bought back
shares from RME and retired those shares, reducing the Outstanding
Shares from over 1 billion to 722 million. That is a fact. Read the 10-
Q from February 2009. Many companies increase Authorized Shares
(especially when the share price is low) as a reserve for future use
-- mergers and acquisitions, stock grants for employees and
executives, etc. No one (and I mean no one) except the management at
this company understand why that was done. And anyone who claims they
do is speculating or lying. Even my previous statement *is*
speculation as I have no knowledge as to why they would increase the
Authorized Shares at this time. But my speculation is based on the
*fact* that they have retired over 400 million shares in the last 5
months. To increase new Outstanding Shares now would be contradictory
to those actions.


The float has dropped to 332 million from 443 million. We don't know
yet when, how or why this was done. But it still remains a fact -- and
a good one at that. The acquisition of their patent company, Dicon
Technologies (et al) clearly showed SpongeTech is serious about their
future. This was a cash deal with no dilution. So they aren't using an
increase of O/S to raise acquisition capital.


There really isn't much for the bashers fact list. In fact, other than
the increase of Authorized Shares, they really don't have anything to
claim that can be backed up by facts. The other big issue was the
ownership of the patents, but I guess the Dicon deal and subsequent 8-
K shut them up. Remember all those often repeated "Wait of the 8-K and
you'll see!" posts? They seem kind of uninformed and desperate now,
don't they?


They don't have anything left except to start throwing conjecture at
the 10-KSB, which should be released at the end of August. But that's
the only thing they have. Of course once it is released, they'll move
on to the next [weak] complaint. It won't end with this crowd. And you
know they'll always toss out the slander and name-calling posts
because that's the last resort of any desperate individual. When all
else fails, call someone (or their mother) a poo-poo head. Yep, that
will sure make me sell my shares, admit I was wrong and crawl away in
defeat. Right.


For the rest of the facts, you'll have to wait for the next P.R. from
SpongeTech or any other 8-K that might be released. But for the
biggest impact, read carefully the 10-KSB in August.


Personally, I'm loading up as much as possible on SPNG before that
report is release as I believe [speculation] it will contain
confirmation of the growth we've been hearing about in all the P.R.s
released over the past quarter. But you had better do your own DD to
determine what (if any) amount of investment you can make in SPNG. I
suggest you do it well before that report is released to take
advantage of the value of this stock.


But even the 10-KSB is only the beginning for this company and this
stock. No matter what happens at the end of August, the company is set
up great for the future and they will arrive. I believe the longs and
day-traders can all make money on this stock at least for the time
being. I would assume that will continue into the future as the price
will continue to rise. Let's face it, they are about 75% of the way
through last year's sales in just the first 2 months of this year.


I'm glad to be here holding my shares and being a part of the long
term investor group of SpongeTech Delivery Systems. There are some
great folks here with information (both good and bad) and that
information warrants attention. The rest of this junior high name-
calling and mud slinging doesn't. But unfortunately you have to wade
through it to get to the good stuff.


I guess it is a small price to pay for success. And SPNG long term
investors *will* be successful. And no one here has any facts that can
prove otherwise.


Author=TheCommish

[rioj]

I just bought some. What would be the fair value of this stock after the release of good news, sales forecast etc for the next 2Qs? Any experts here?