Spongetech still busto

October 28, 2009

The ban on trading Spongetech shares seems to still be in effect, even though it was supposed to be lifted on Oct 16th at 1159PM. Either that, or the ban was lifted, but no one has traded a share of Spongetech in the intervening days. I can’t find any news as to why the ban is still in effect, so I’m assuming the SEC documents still have not been filed correctly.

Here is a link to the SEC file to suspend trading for the designated period. Pretty cool that any old person can get to that, right from the SEC’s website.

That’s your Spongetech hit for the Spongetech junkies.

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Spongetech update

October 15, 2009

To all the spongetech junkies who keep coming to das Skiz looking for updates, here’s a couple articles I found trolling around the internet.

CNBC article discussing the permeation of Spongetech in sports venues. Apparently they advertise in the background of NY Giants interviews, in addition to having some prime real estate at Citi Field. Sports teams are awaiting the SEC decision to see what happens with future advertising. This is hardly a huge scandal, compared to the fact that the Houston Astros used to play at Enron Field. Yeah.

This is a hilarious article, also with a ridiculously similar title, that reaffirms why ESPN should stick to writing about sports, and not about business interests. It’s all about how Spongetech has overcome in a tough economy, and how they saw an opportunity to advertise and took it. Published on Sept 15th. Really funny to read it now.

And here’s an article about a class action lawsuit that may or may not be filed against Spongetech, accusing them of falsifying earnings and such. It’s amusing to me because I don’t exactly know what money they’re going to get at, but whatever.

Enjoy your latest fix.

It’s been Spongetech week here, but the news keeps coming in, so I figured I’d keep talking about it.

First, Robin sent me an article on Yahoo! Finance saying that Spongetech’s stock has been temporarily suspended due to their lack of compliance with the SEC. Spongetech is insisting that this will be all cleared up, and that by October 16th their shares will be back up and ready for trade. Suspending their trading power is a big hindrance to a company whose sole goal is to sell stocks.

Once again, I’d like to remind everyone that there is absolutely nothing illegal about creating a company for the purpose of selling stock. What is illegal is misreporting earnings, which might cause people to think that you actually are doing better than you really are. That would be fraud. But until they get accused of that, they haven’t done anything really wrong, except not file a report with the SEC, due sometime May 31. They claim that that is the result of their auditor having its license revoked, which probably isn’t a great sign.

Second bit of news is that there weren’t any Spongetech ads during last night’s playoff games. Looks like only the big boys advertise during the playoffs. The big boys, and the color green that is.

I can actually tell that's green!  Unless it isn't

I can actually tell that's green! Unless it isn't

That ad malfunction ran during the Cardinals-Dodgers game. Perhaps that was a spot that Spongetech had reserved? Also, it’s possible they were scheduled to advertise during the bottom of the 9th, but no game reached that point yesterday.

Since I’ve now become obsessed with Spongetech news ( and since they keep making new news ), I was searching for headlines again tonight when I came across this article:

Spongetech is all wet

That article, written by Ruddy Boyd, was posted 1 day before my article last week, and includes the phrase, ‘What the hell is SpongeTech?’ That is really insane, and a total coincidence I can assure you. If Mr. Boyd comes by here, sorry if it looks like I stole your story, but I had just had enough of seeing the Spongetech logo, and needed to find out more for myself. You’ll also note that Boyd’s article is filled with ‘research’ and ‘facts’, while mine was mostly filled with sometimes witty things and screen shots. Pretty crazy the resemblance of that quote though.

Since I got some searches for people looking for Spongetech, I thought I’d follow up on them to see if I could find anything else out about them. Here is something really fishy:

Where have I seen that before?

Where have I seen that before?

umm …

Oh right, that's where

Oh right, that's where

The first picture is from a website called stockshaven.com. The article there is endorsing Spongetech as a ‘buy’ (surprise surprise). The second is from Spongetech’s website, included in a post from last week. Here is a piece of the stockshaven.com article, which makes stockshaven sound like a pretty reputable site that I would definitely want to use.

SPNG is a buy @ $0.0195 as of Wednesday, April 1, 2009

Yes, I am going to go ahead and say that this is one of the most undervalued companies currently on the market. The upside on this is astronomical, literally. I don’t even have to sit here and convince you as to why to put your money in on this. Projected $13,000,000 in revenue for March ’09, a commercial that runs nationwide on some of the most popular channels viewed by excess of 100,000,000 people.

You may have noticed that the .0195 stock price is much lower than the .06 that it’s currently trading at. However, it was all the way up at .20 sometime over the summer.

I found another blog posting about Spongetech, calling it a ‘pump and dump’. Basically, a pump and dump stock generates money for the guys in charge by pumping up stock prices so that they can dump them back on you. So it looks to you like Spongetech is making lots of money, and has all these prominent advertisements, making it a great investment candidate. But really all the company is trying to do is sell their shares of stock. That blog entry mentions that they may even be selling their sponges at a loss, or possibly just reporting sales that haven’t happened.

Here is one last hilarious post I found, from Oct. 4th 2009. Apparently Spongetech entered into a partnership with a company called GetFugu, who sounds about as reputable as Spongetech. Spongetech gave GetFugu $4M to become a partner in some probably bogus deal. But before Spongetech could do any screwing, GetFugu cancelled the deal, and kept $1.75M that had already been exchanged. The only thing about that is that in a February filing, Spongetech stated that they had $37,500 in cash or cash equivalents, and that’s it.

Thanks to pagesix.com, timothysykes.com, and stockshaven.com for information in this story.
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Spongetech, exactly what I think of when I watch baseball

Spongetech, exactly what I think of when I watch baseball

This has been bugging me for some time. Actually, it had just been kinda bugging me, and then I got MLB TV, and it started really bugging me. Here’s some background.

If I said, ‘Spongetech’ to you, and you are a Phillies fan, you might say something like, ‘that sounds familiar’. Or maybe you don’t recognize it at all. In any event, Spongetech.com has been advertising at every single Phillies home game, as far as I know. I cannot completely substantiate that, but I have a strong feeling that they have advertised for a half inning during every single home game this season, right behind home plate.

At first I just figured this was some local Philly company that cleans up after your parties or something, and they scraped together what they could to advertise during the Phils game. That would be really cool if you were a small business that did that, because you’re certainly going to get a lot of eyes on the sign. Further confirming that argument was that the sign is … simple. I mean, in other innings, Tastykake and Ford and other big companies have colorful signs with those picture things, describing products made for humans. No, not Spongetech. They just have the web address, and a thing that says they are America’s cleaning company. So maybe ‘America’s cleaning company’ is a clue that it wasn’t local, but America isn’t America without Philadelphia, so I thought they were just appealing to our sentimentality about the Declaration of Independence.

Then I got MLB TV. I started dabbling in other games that meant something to the Phillies or affected Catherine’s fantasy baseball team (my fantasy baseball team became irrelevant at approximately the same time as the Washington Nationals). And suddenly I saw Spongetech again. And again and again. It became time to do some investigative research.

OMG stocks are up at Spongetech!  Pulled from their actual website

OMG stocks are up at Spongetech! Pulled from their actual website

I typed Spongetech into google, because I didn’t want to hear from Spongetech what Spongetech is. The first article of note that I found was this detailing that Spongetech was having a little trouble filing certain important documents with the SEC. This may have something to do with the graphic above, and the fact that they have clearly spent a lot of money advertising during MLB games.
This evening, I was on the phone with multi-time blog ignorer, and sister, Liz, who said the following:

Maybe they’re called Spongetech because they clean out your financial records.

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