Spongetech is a mini Enron?

[redrumloa]

For anyone who missed the last thread... I bought Spongetech (was ticker SPNG, now ticker SPNGE and halted) at 9 cents and sold at 20 cents when they failed to file their 10K on time. Since then things have gotten worse, much worse. Red flags started popping up all over the place, and then came the SEC investigation and finally the SEC suspended trading yesterday.

What it appears we have here is an illegal stock pump from a company boldly cooking the books and releasing totally fabricated PR's (not misleading, but complete falsehoods). While they pumped the stock and advertised everywhere imaginable, they were secretly dumping billions of diluted shares unreported on the market. While the pure size of this apparent scam is smaller than Enron, the tactics appear to be bolder and equally dirty. We'll see how this plays out, but it looks very bad for anyone left holding the bag. The stock was suspended at 6 cents, but if it ever trades again, and it might not, it will open much much lower.

Here is a good example of the pitfalls of the stock market and why you have to remain vigilant. I was recommending this stock to many people and equally warned anyone who listened to pull the plug as soon as the 10K failed to file on time. It is amazing the boldness of the fraud *IF* everything turns out the way it appears right now and it looks very bad.

New York Post:

http://www.nypost.com/p/news/business/s ... vS96Xmi5bN

http://www.nypost.com/p/news/business/s ... 8oFLU0DNaN

http://www.nypost.com/p/news/business/s ... Lmmu0opMzK

http://www.nypost.com/p/news/business/s ... PG8yqg2pjJ

Slate:
http://www.thebigmoney.com/articles/jud ... ch-all-wet

 

[Wayne]

how much did they get you for?

 

[redrumloa]

Actually my average was about 9.85 cents and I sold at 20.1 cents when they failed to file the 10K. I made just over 100% profit. I did not have a ton of money in it, my trading account is still pretty small.