Market Watch for week of 9/13/09

[candleman]

SpongeTech(R) Delivery Systems Announces Delay in Filing of Its Form 10-K
0 minutes ago - Businesswire

Related Companies
Symbol Last %Chg
SPNG 0.122 0.00%

As of 12:00 AM ET 9/15/09
SpongeTech(R) Delivery Systems, Inc. ("SpongeTech") "The Smarter Sponge(TM)", (OTCBB: SPNG) today announced that it requires additional time to file its Annual Report on Form 10-K for the fiscal year ended May 31, 2009.

As previously announced, SpongeTech retained Robison, Hill & Co., a Professional Corporation, following the resignation of Drakeford & Drakeford, LLC on July 16, 2009. Drakeford resigned as a result of the revocation of its registration by the Public Company Accounting Oversight Board ("PCAOB") which occurred on June 16, 2009. The transition to the new auditor has resulted in delays in completing the audit of SpongeTech's financial statements for fiscal 2009, as well as the re-audit of its financial statements for fiscal 2008, which the SEC notified SpongeTech on September 11, 2009 would be required as a result of the revocation of Drakeford's PCAOB registration.

CEO Michael Metter said, "We recognize that our shareholders have been waiting patiently for the filing of the fiscal 2009 Form 10-K. Unfortunately the requirement to re-audit the 2008 financial statements has caused the process to take longer than we expected. We are working with our current independent auditors to file the Form 10-K as quickly as possible."

If you read through this, it's not all that bad. It DOES take time to re-audit. This is business and business isn't always pretty. It's not doom and gloom for the company, it's just a delay. It will be interesting to see how others feel about this. But, for me, I'm holding tight and may buy more if the price sinks in the next couple of days.

[candleman]

AGREED! I'm in for 65K shares @ .025. I'm pretty sure I'm going green on this one today and continuing that all the way into Friday.

Shots, where do you think a logical exit point is. I'm almost feeling like putting a sell in at .035 and being happy with some profit. What are your thoughts?

[imromo24]

im not happy, but nothing fundamentally has changed...i tried to play the previous ups and downs and ended up costing me about 1k shares because the volume is so high I couldn't get my buys placed before the jumps back up...so im depositing more money today to take advantage of the discounted prices...

thats my position, holding or buying more...even if they change the 2008 filing it won't hurt because it either makes current numbers look better or they stay the same...

i don't doubt that spng hits some new recent lows...(but then again it could be looked at as good news because now we know why the 10k is late and its not the companies fault, and the news isn't bad, just need a reaudit)

2008 numbers have no effect on what is going forward, so what if they say in 2008 they made less money? Its about what they are going to make...

[Los Tiburones]

Hope that helps Bass ...

It's a nice boost in the arm this morning.

My leaks? Boy, too late to the party ... seemingly, all of my pennies are red. Yesterday I was having serious doubt's about all of them, wondering if I had allowed myself to be conned, that they all had had their little run and now I was just stuck ... A great part of the problem? I got awakened far too early in the morning, couldn't get back to sleep and was in a foul mood all day. Fatigue can have you imagining all kinds of things, not to mention the inroads from the unscrupulous (I.E. Shrub reading) that works it's way into the subconscious ...

Still, just trying to think critically about all of this, it's psychologically ... challenging. I will continue to be highly suspect about any and all of these stocks, too easy to latch on to things ... An example, the Stock Guru on QASP. For all the great stuff dug up and presented over there, it occurred to me that they well may be paid to do just what they are doing, pumping up the stock ...

I'll be off on another ramble here if I don't stop ...

[Los Tiburones]

Form 8-K/A for SPONGETECH DELIVERY SYSTEMS INC


--------------------------------------------------------------------------------

16-Sep-2009

Changes in Registrant's Certifying Accountant



Item 4.01 Changes In Registrant's Certifying Accountant.
On July 28, 2009, SpongeTech Delivery Systems, Inc. (the "Company") filed a Current Report on Form 8-K (the "Form 8-K") reporting the resignation on July 16, 2009 of its independent registered public accounting firm, Drakeford & Drakeford, LLC ("Drakeford"). This Amendment No. 1 to the Form 8-K (the "Form 8-K/A") is being filed to clarify that Drakeford's decision to resign was due to the revocation of Drakeford's registration by the Public Company Accounting Oversight Board ("PCAOB") which, according to the PCAOB's Order Instituting Disciplinary Proceedings, Makings Findings, and Imposing Sanctions (the "Order"), occurred on June 16, 2009 as a result of a misleading representation made by Drakeford in connection with the PCAOB inspection processes and a violation of PCAOB auditing standards relating to audit documentation. The PCAOB's Order did not reference the Company or the audit of the Company's financial statements as in any way related to the revocation of Drakeford's registration.

During the fiscal years ended May 31, 2008 and 2007, and the subsequent interim periods through the date of Drakeford's dismissal, (i) there were no disagreements with Drakeford on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreement(s), if not resolved to the satisfaction of Drakeford would have caused it to make reference to the subject matter of the disagreement(s) in connection with its reports, and (ii) there were no "reportable events" as defined in Item 304(a)(1)(v) of Regulation S-K. The reports of Drakeford on the Company's consolidated financial statements as of and for the fiscal years ended May 31, 2008 and 2007 did not contain an adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principles.

The Company provided Drakeford with a copy of the foregoing disclosures and requested from Drakeford a letter addressed to the U.S. Securities and Exchange Commission (the "SEC") stating whether it agrees with such statements, made by the Company in response to Item 304(a) of Regulation S-K and, if not, stating the respects in which it does not agree. The letter from Drakeford will be filed by an amendment to this Current Report on Form 8-K/A when it becomes available.

On September 11, 2009, the Company received notification from the SEC that, as a result of the revocation of Drakeford's registration with the PCAOB, the Company would be required to have its financial statements re-audited by a PCAOB-registered firm for any year previously audited by Drakeford in order for the Company to include such financial statements in its future filings with the SEC. Accordingly, the Company's financial statements for the fiscal year ended May 31, 2008 are currently being re-audited by the Company's current independent registered accounting firm, Robison, Hill & Co., A Professional Corporation, a PCAOB-registered firm, in connection with the preparation of the Company's Annual Report on Form 10-K for the fiscal year ended May 31, 2009.

[imromo24]

Hey Romo, today is YOUR day! We're all hoping your dreams come true. May the Sponge fullfill all of your needs by 5:30 today...

keep an eye on the ticker spng, if it doesn't get the "e" at the end then the circumstances are considered excusable by the sec...as of last night spng was not on the symbol change list on otcbb.com


I think they filed last week and the sec reviewed it for a day and determined that they needed to reaudit 2008.

[ShotsII]

im not happy, but nothing fundamentally has changed...i tried to play the previous ups and downs and ended up costing me about 1k shares because the volume is so high I couldn't get my buys placed before the jumps back up...so im depositing more money today to take advantage of the discounted prices...

thats my position, holding or buying more...even if they change the 2008 filing it won't hurt because it either makes current numbers look better or they stay the same...

i don't doubt that spng hits some new recent lows...(but then again it could be looked at as good news because now we know why the 10k is late and its not the companies fault, and the news isn't bad, just need a reaudit)

2008 numbers have no effect on what is going forward, so what if they say in 2008 they made less money? Its about what they are going to make...

OK bro. You know much more about this one than I do, so I'm going to hold also. Probably wont buy more tho.
Besides, QASP is going to offset my SPNG losses today anyway.
My only other holding is BEHL.... Did their PR guy die or something? I'm beginning to miss him.

[imromo24]

ps, the drakeford news is not new...that was announced a while back...the new part is that the 2008 #s have to be reaudited to be included in the 2009 10k...

IMO, nothing to worry about (at all) except that the pps will go down, im holding, the pps will recover and go up once this is cleared.

Only thing to think about is what happens if the RS happens before the filing...which i sort of anticipated anyway, in fact i suppose i should be happy because now i have a reason why they will file after the RS versus I thought they were going to release the 10k late with no warnings (per the SEC companies have a 30 day grace period from the extension to file before delisting)

they should get an "e" after the ticker, if that doesn't happen then the SEC is on the side of spng that it was out of their control.

Making big money takes time i guess...

[imromo24]

OK bro. You know much more about this one than I do, so I'm going to hold also. Probably wont buy more tho.
Besides, QASP is going to offset my SPNG losses today anyway.
My only other holding is BEHL.... Did their PR guy die or something? I'm beginning to miss him.

im still all in and looking to add more....I just wish i was good at day trading so i could have picked up free shares, im sure not selling into a gap down

[stang3O2]

I bought Greg's CHB today as it looks to be breaking out