Gediminas Jasionis

Spongetech Delivery Systems, Inc. (OTCBB: SPNG) Launching Yet Another SPONGE

by Gediminas Jasionis January 31, 2010
SPNG logoSpongetech Delivery Systems, Inc. (OTCBB: SPNG) came up with yet another type of pre-soaped and wax filled sponge they claim will find its place in the marine oriented market. The press release touts the product as being the ultimate solution for cleaning boats till they shine.

The product might possibly work just fine, like many other types of sponges the company has introduced so far. The problem however lies with the company's dedication to share their wellbeing with the shareholders.


The unaudited financials published on Spongetech's webpage look really neat and investors are still watching the stock and waiting if the management would decide to introduce some transparency.

Launch of a new product and entrance to the new market sector would usually be welcomed with significant increase in share price. Spongtech's stock didn't twitch up though signalling the lack of optimism among traders.

The lack of trust is natural under current circumstances. Management concentrated on doing business through subsidiaries and seems to have forgotten about the public part of their business.

Lawsuits have been filed in attempts to prove management has tampered with the stock and that's probably the most reliable information that recently came out concerning the company. Other PR's are simple marketing attempts, not worth the attention, as they provide little financial guidance, especially with no 10-K filing on the horizon.

The stock price has dipped, and it will likely dip further, at least until lawsuits are resolved so keeping your money out of this stock is most likely the best thing to do. If the company is the performer they promote it to be, an audit  would make an impact with plenty of opportunities to load up.

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