Another penny stock play for anyone interested.

redrumloa

redrumloa

Active Member
Moderator
Joined
Apr 2, 2005
Messages
14,966
Reaction score
2,154
You guys saw my call on Sirius (SIRI), which I rode for a tripple. I have another one for you which may have even more upside than a tripple, but may be a longer term play.

SpongeTech Delivery Systems, Inc. (SPNG.OB)

http://finance.yahoo.com/q?s=SPNG.OB

It is an OTC stock currently trading at about $0.10 a share. The fundamentals are solid. The forward P/E is under 8, has real revenue, is profitable, no debt, has growth and over 51% insider ownership. The real kicker is their products are getting penetration in Costco and MLB.

http://finance.yahoo.com/news/SpongeTec ... .html?.v=3

http://biz.yahoo.com/prnews/090602/cl26167.html?.v=3

As always, be careful with penny stocks. Only invest what you can afford to lose. Penny stocks are dangerous, but the reward can far, far exceed the risk. I see this one going up bigtime.

Disclaimer: I have a long position at $0.09.
 
errrrr... That didn't take long.. :shock:

http://finance.yahoo.com/q?s=SPNG.OB

Anytime I am in a stock that makes an immediate huge pop, I usually trade out and wait for a pullback. At this point I think I will stay in, trading this one might get me burned ...
 
I'm sorry, but I have to brag!

http://finance.yahoo.com/q?s=SPNG.OB

In less than a week I am up a whopping 160%! I say at these levels this stock is way dirt cheap. Anyone here trade and/or invest? The more I investigate this company doing due diligence, the more I am shocked how good of an investment it is! I can easily see it trading in the $3-$5 range next year, possibly much higher.

If you can, get in ASAP. It closed at $0.235 today. The all time high is $0.30, when it breaks above 30 cents it is called a "Blue Sky Breakout". When that happens, all bets are off. It could skyrocket like crazy! :banana:
 
Boy, I hate to be missing out on all the fun. I was feeling smug 'coz we're nearly out of our line of credit. I can't justify dipping back into it for speculative reasons right now. Maybe next year if I'm far enough in the black.
 
FluffyMcDeath said:
Boy, I hate to be missing out on all the fun. I was feeling smug 'coz we're nearly out of our line of credit. I can't justify dipping back into it for speculative reasons right now. Maybe next year if I'm far enough in the black.
Click to expand...
If you borrow to invest, you can write off the interest come income tax time.
 
Glaucus said:
If you borrow to invest, you can write off the interest come income tax time.
Click to expand...
And I guess if I lose my shirt and can write the whole thing off.
 
FluffyMcDeath said:
Glaucus said:
If you borrow to invest, you can write off the interest come income tax time.
Click to expand...
And I guess if I lose my shirt and can write the whole thing off.
Click to expand...

In the USA you can write off up to $3,000 a year.
 
Well, Spongetech is now down to 0.08. Did you get out before things went bad, red?
 
JoBBo said:
Well, Spongetech is now down to 0.08. Did you get out before things went bad, red?
Click to expand...

I just pulled this thread back up and didn't know you had posted Jobbo. No I didn't sell, this was an investment for me, not a trade. I watched the irrational pullback and used the opportunity to accumulate more shares. I have a much larger position now and the PPS is moving back in the right direction.

http://stockcharts.com/h-sc/ui?s=SPNG&p ... 5943948156

It closed at $0.1919 today. My average price is $0.0995 on a larger position, so I am currently up 92.86%. Not a bad return for about 2.5 months. I am not selling here though, I am not selling at $0.30 either. This is probably an easy 10 bagger from here, I am holding at least a year.
 
I should also mention, the same scenario I mentioned earlier in this thread is still true. If/when we break the ~$0.30 range this time, it will be a "blue sky breakout". Usually that means a huge pop. I point to charts, but I do not see this one as a trade. Look at the financials, it is wildly undervalued here. This is a company on track to make 25 million THIS MONTH and is growing 10% - 20% PER MONTH. Margins should also be improving as they bought out the company who owns the core patents and manufacturing plants. Their product line also has expanded by ~3 fold over night with the acquisition. They are also buying back shares like mad. They announced a 150 million share buy-back (open market) and have the option to buy back ~300 million restricted shares from RME at ~$0.01/share. The O/S should be 1/3 of what it is right now by late this year.

Table pounder, period.
 
Still in an uptrend, closed at $0.21 on Friday.

http://stockcharts.com/h-sc/ui?s=SPNG&p ... 5943948156

Monday and Tuesday should be interesting. Technicals are approaching overbought in the short term, but technicals are imperfect in penny stocks. Monday the company will be releasing the 10K annual report, possibly after market close. If it has clarification on share structure after buybacks or some upside surprises etc, it could really rally hard from these levels. If the 10K is only includes expected numbers, a pullback and consolidation period could happen. Me? I say it is north of $0.30 within 2 weeks.
 
Well this is not good.

http://www.sec.gov/answers/form10k.htm

Their fiscal year ended May 31, 2009. At the time their public float was less than 75 million, so the 10K is due within 90 days after the end of fiscal year. 90 days was Sunday, so today becomes the deadline. As of the time of my post, they have not yet released the 10K. It is now ~9:15PM EST, they have 2 hours and 45 minutes left. If it is not posted tonight, I will likely sell all my shares at market open.
 
redrumloa said:
Well this is not good.

http://www.sec.gov/answers/form10k.htm

Their fiscal year ended May 31, 2009. At the time their public float was less than 75 million, so the 10K is due within 90 days after the end of fiscal year. 90 days was Sunday, so today becomes the deadline. As of the time of my post, they have not yet released the 10K. It is now ~9:15PM EST, they have 2 hours and 45 minutes left. If it is not posted tonight, I will likely sell all my shares at market open.
Click to expand...

I misspoke, that had until 10PM and that deadline has passed. They now have 24 hours to file for an extension.

http://www.secfile.net/SEC_calendar.htm ... calculator

Companies may request a filing extension for their Form 10-Q's and 10-K's by submitting Form 12b-25 via the EDGAR system. By filing this form, a filer may gain up to 5 additional days to file Form 10-Q or 15 days to file Form 10-K. Companies have up to 24 hours after the original filing deadline to file Form 12b-25.

I dunno, I will sleep on it. I may sell all at market open to lock in current profits. The old sell first, ask questions later.
 
Yup, I'm out at $0.201. Over 100% gain, but sucks to sell. It will probably be nothing, they did eventually file for an extension today. Just following my own rules.. I may or may not get back in, probably yes. For now I will watch the chart waiting for the 10K.
 
No 10K yet. Reverse split was announced and PPS is tanking.

http://finance.yahoo.com/q?s=SPNG.OB

I'm looking for a re-entry point around $0.085, but a smaller one until their reporting problems (and other issues) get cleared up.
 
You must log in or register to reply here.
Back
Top