[SPNG]: A smart investor takes a look at scam company Spongetech Delivery Systems, Inc.
Pretend that you are a smart investor....
You begin to take a look at SPNG
you see that it trades around the 4.0 cent range
you now wonder what its market value would be at this price
so you look at the SEC filings for SPNG to try to find the current Outstanding Common Shares (O/S).
after clicking all the links in the edgar SEC filngs for SPNG you are horrified that the latest set of financials available on SPNG are for the period ending Feb. 28, 2009, about a year ago.
no 10K that was due Aug. 31, 2009
no 10Q that was due Oct. 15, 2009
no 10Q that was due Jan. 15, 2009
you then realize that SPNG has refused to let its stockholders or potential investors know the current O/S for about a year now.
you get more worried and this is further troublesome because SPNG has tripled the Authoriized Common Shares (A/S) during this same period to 3.0 billion shares.
You then do more research and find out that the SEC started a formal investigation of SPNG in Sept. 2009
to your horror, the SEC suspended trading of SPNG for 10 days in Oct. 2009 with strong wording about the unreliablity of financials filed with the SEC and released trough PR's
You investigate further and find out that every stock promoter known to mankind in the last 100 years has been used to pump and hype SPNG, with at least a million dollars paid to these stock promoters in the month of June 2009 alone.
not looking good
as you start observing that the past stream of one to two Press Releases per day issued by SPNG are now only coming out about once a month.
then you find out that SPNG has been bouncing checks into the six figures and has been sued by the Mets and Madison Square Garden for non payment of adveritsing expenses.
You look back to the SEC filings and observe that only a couple of clients were responsible for the bulk of the $31 million in sales for the 9 months ending Feb. 2009. Futhermore you can't locate those clients no matter how hard you try, except for some small apartment in Illinois for one of those clients...
and finally, after months of SEC investigations you find out that the SEC has issued a Wells Notice to SPNG, the CEO and the COO indicating that they intend to file securities fraud charges against them in one of the more far reaching set of violations of SEC regulations that you have ever seen....and before you know it you realize that there are about 1/2 dozen class action lawsuits against the company and management.
Then SPNG issues a press release that they replaced their old law firm with a powerful law firm specializing in criminal defense...
AT THIS POINT IN TIME YOU SIT BACK AND THINK:
SHOULD I INVEST IN SPNG?