I don’t know if it was being featured on ‘The Price is Right’ that prompted yesterday’s big surge from our bulletin board stock pick SpongeTech Delivery Systems (SPNG), but it may have helped. Or, maybe it was CEO Michael Metter’s letter to shareholders. Frankly, it doesn’t entirely matter what the reason is, because I think SpongeTech’s sales and revenue results merit this small cap stock’s gain. It’s about time we saw this breakout.

The nearby chart tells the whole story. We saw a high-volume gain yesterday…though major accumulation isn’t entirely new here. The other thing we saw was new - a move above the 200 day moving average line, for the first time since there’s been enough data to actually calculate a 200 day moving average line.

There may be one more hurdle, though I don’t really think it will be a problem. February’s peak was 4.9 cents…a line that acted as a ceiling for several days before sending the stock back to multi-year lows. This time seems to be different, in that we have plenty of volume supporting the rally this time.

If we see SPNG hit 5 cents, it may be a good time to start accumulating even more.

By the way, my confidence level in the stock is largely driven by Michael Metter’s letter yesterday. He didn’t tell us anything we didn’t believe already, but it was a nice confirmation of our expectation.

Basically, Metter said the company was on track to ship $3.3 million worth of sponges in their fourth quarter (which ends on May 31st). Annualized, that’s $13.2 million in sales per year. Yet, the backlog is still bigger; it’s about $20 million at this point. I suspect we’ll see several quarters of significant growth.

As a reminder, they did $1.22 million in sales last quarter, and posted decisive profits. I expect to see higher sales translate into higher earnings this time around.

This is shaping up to be one solid bulletin board pick as the company enters its high-growth stage. Of course, that’s the whole point of trading small cap stocks.

Are you a subscriber to the Small Cap Network newsletter? If not, you’re missing out on some great trading ideas and exclusive market commentary. To sign up, just go to the top right corner of any page of our website. You’ll be joining thousands of other subscribers who have already benefited from our news and views.

You know, a company can buy an infinite amount of advertising - in all mediums. Sometimes though, the best advertising isn’t advertising at all. Being publicly mentioned in a non-promotional way can ironically be an incredibly effective promotion. It’s simply a matter of credibility. This is an idea small cap company SpongeTech Delivery Systems (SPNG) is not only aware of, but something they’re on the verge of becoming intimately aware of thanks to a few upcoming prime time mentions on the game show ‘The Price is Right’.

SpongeTech’s auto wash/wax sponge will be the subject of one the show’s price-guessing games, so millions of eyes will be studying the product and making the same mental guess at home. That’s only a precious few seconds of consideration, but enough to plant a seed of recognition.

The sponges won’t just be featured on just one game though. They’ll be ‘priced’ on May 7th, May 14th, and once more in July.

If you can’t catch the show during the day, don’t worry - they’ll be airing at 8:00 pm EST those evenings. Check your local CBS listings for the air time in your time zone.

By the way, if you don’t think passive product integration can have an impact, try this short pop quiz. (You’re on the honor system.)

1. What’s the favorite drink of American Idol’s three judges?
2. Where does Donald Trump encourage you to go after each episode of the Apprentice?
3. What snack did you crave a few minutes into the movie E.T.?

If you’re like most people, you actually answered at least two out of the three correctly. Point being, even if you don’t know it, product placement can and does plant seeds in your head. That’s why these three mentions are a subtle but big deal for SpongeTech.

By the way, the answers to the above questions are (1) Coke, (2) Yahoo’s Hot Jobs, and (3) Reese’s Pieces.

Are you a subscriber to the Small Cap Network newsletter? If not, you’re missing out on some great trading ideas and exclusive market commentary. To sign up, just go to the top right corner of any page of our website. You’ll be joining thousands of other subscribers who have already benefited from our news and views.

Well, it’s been two full trading days since I highlighted three of our bulletin board stocks. My general theme on Tuesday morning was simply that the pullbacks for all three didn’t really worry me, provided they started to rebound soon. So far, all three picks have behaved satisfactorily. None have been ‘like gangbusters’, but then again we’re not in a gangbuster kind of environment.

So what type of market environment are we in? Here’s my latest take - I’m not overwhelmed by Wednesday’s bullishness.

Let’s just mix things up a bit today and look at the Russell 3000 (though each chart is telling the same story). Basically, the market is hovering just under a ceiling, but so far has been unable to break though. To its credit, last week’s rally and this week’s persistence has gotten very close to carrying stocks past early-February’s peak. But, horseshoes and hand grenades, you know?

For the Russell 3000, the line in the sand is 808. Though the Dow and the NASDAQ are technically above their February peak levels, it’s been far from a convincing move. So from my point of view, the overall market is still in a trading range.

Here’s the Russell 3000 chart.

Now, about those three bulletin board picks….

Spicy Pickle (SPKL) quelled the selling pretty quickly Tuesday morning. I mentioned those sellers were limited in number (as indicated by weak volume), and based on the way they’re not putting up a fight now, I think they have been flushed out. The buy-in volume has been a little less impressive than I’d like to see, but we’re getting decent action on the stock.

When I mentioned Smart Energy Solutions’ (SMGY) stock had found a floor at 17 cents, I think maybe somebody took that as a dare. SMGY tagged 16 cents on Wednesday. No big deal - we saw an immediate rebound. It’s just one of those things where ‘as sure as you say it….’

Anyway, I want to reiterate the message I was sending then - though the stock is not doing great, it’s not like there are armies of sellers. In fact, there are decidedly more buyers, need on the rising accumulation line. It’s just that the buyers can’t string enough decent days together in a row to break out of the funk. It’s definitely becoming a test in patience.

And then there was SpongeTech (SPNG). The issue here wasn’t a lack of strength, but too much strength to sustain. The stock did indeed pull back even further on Tuesday, hitting a low of 3 cents. On Wednesday, we saw nice, reassuring rebound, with SPNG again hitting a low of 3 cents and pushing off of it to end the day at 3.6 cents. That’s not the biggest deal though.

Take a look at the last two bars (Tuesday and Wednesday). They’re almost mirror images of each other, and both are relative tall bars (wide ranges). Though it’s not technically what’s known a ‘bullish engulfing’ pattern, it comes pretty close. We need to see a little more upside on Thursday to clinch the signal. It’s encouraging though.

Anyway, all this bodes well for all three bulletin board stocks. Is the market giving ‘em a little nudge? Sure, but we’ll take it.

Are you a subscriber to the Small Cap Network newsletter? If not, you’re missing out on some great trading ideas and exclusive market commentary. To sign up, just go to the top right corner of any page of our website. You’ll be joining thousands of other subscribers who have already benefited from our news and views.

No, that’s not the beginning of some joke with a corny punch line - they really do have something in common. What is it? They’re all huge Yankees fans.

Giuliani you probably knew about; “The Boss’s” affinity is a little less public. SpongeTech’s (SPNG) support is coming in the form of team sponsorship. SpongeTech will be giving away key-chains at the July 28th home game as part of their sponsorship package. That’s hardly all they get that day though. The company’s name/logo will be visible all over the stadium (inside and out), and the company will be mentioned on TV as well as radio.

Aside from being a fun day for everyone, SpongeTech has once again found an effective way to get themselves in front of new consumers. This follows their appearance on QVC’s ‘Keep it Clean’ segment yesterday, and the announcement of their product being featured on a couple of upcoming episodes of ‘The Price is Right’.

By the way, SpongeTech is based in New York, so they should get a little extra hometown love from Yankees fans. 

P.S. The Yanks play the Orioles that day.

I see a theme developing today for SpongeTech (SPNG) and female consumers - the company is making something of a blitz to get their product in front of them. Just a few moments after announcing their auto wash sponges would be appearing on TV’s ‘The Price is Right’, we’ve now learned their product is going to be highlighted on the popular home-shopping channel QVC.

CEO Michael Metters will be demonstrating the patented sponges on a segment appropriately called ‘Keep it Clean’. The segment airs today (Tuesday) at 3:00 PM EST. If you haven’t seen the sponges in action yet, be sure to check out QVC later today.

While I expect QVC to be able to prompt a huge amount of sell-through, I think it’s also worth reminding you the company has already seen a sales improvement fueled by a television commercial campaign during the most recent - and so far unreported - quarter. The QVC spot is just another in a long line of publicity events.
I don’t know how much revenue was booked last quarter, but I do know they’ll be announcing those numbers any day now. Just for some perspective, last quarter (which ended November 30th) they did $331K in sales. The quarter before that, they did about $64K. Between then and now, we know production and ordering has ramped up considerably thanks to a major marketing effort (see all the press releases). I have to think we’re looking at a seven figure top line now…and perhaps profitability.

I’ll let you know as soon as I can about those numbers. Here’s today’s news.
Are you a subscriber to the Small Cap Network newsletter? If not, you’re missing out on some great trading ideas and exclusive market commentary. To sign up, just go to the top right corner of any page of our website. You’ll be joining thousands of other subscribers who have already benefited from our news and views.

No joke there - Spongetech Delivery Systems (SPNG) really is being featured on television’s oldest game show ‘The Price is Right’. Within the next month or so, we’ll be seeing their sponges twice as part of the show’s pricing game. The announcer’s voice - Rich Fields - will describe what the sponge is and how it works, while the cameras show the same.

The upside is clear - exposure. SpongeTech’s sponges are going to be shown to millions of consumers, and I suspect a lot of new ones. They’re winding down their TV ads on several men-oriented networks. Now they’re going to open some doors to a predominantly-female audience. I think the fact that new consumers will see the product is the sweetest part of all.

Here’s the kicker…the sponges will be on the show during sweeps weeks. That just means the network is going to pull out all the stops to crank up ratings, as their ad rates are largely determined by market share.

Here’s the news.

Are you a subscriber to the Small Cap Network newsletter? If not, you’re missing out on some great trading ideas and exclusive market commentary. To sign up, just go to the top right corner of any page of our website. You’ll be joining thousands of other subscribers who have already benefited from our news and views.

We received two reader questions about some of our recent small cap stocks. Since my mission for 2008 is to develop this site into a true small cap community, I’m going to ‘A’ as many ‘Q’s” as I can in the blog. Feel free to chime in with your own thoughts below (if they’re pertinent). Or, if you have something to say about a small cap besides one of these two, find that company’s most recent entry in the blog and say your piece there.

All your comments in the blog are read; most are posted (provided they aren’t spam, blatantly self-serving, or whining). I usually add my thoughts as well.

Anyway, here we are….

1) You wrote up a report on SWEB I believe and was wondering how you feel about that now with these big ups and downs. I have held onto it and actually have owned it for sometime. Also could you give any thoughts on ATML. 

Thanks for the question. StockGroup (SWEB) has one of the coolest investor-oriented sites I’ve ever seen (besides ours of course). However, the growth here has just been too slow. Anybody can buy a company and increase the top line; the point is to do more with a company than the previous owners did. StockGroup is a good company, but it’s just not growing fast enough. Less talk, more action…or more results. We’ve been following ir for a year, and the hype was huge in early 2007. Shattered dreams over the last 6 to 7 months have really let the wind out of the sails.

As for the future, I still think they’ll get bought (which is what they want). But, they have to get on the horse and get it going.

Regarding the stock’s ups and downs, a lot of it may have to do with the overall market’s mood. On the other hand, the market may also just be bored with the stale story. Keep it on you radar, though I don’t know that I’d be willing to hold it indefinitely right now.

No thoughts on ATML….I don’t know the company well enough.

2) Any specific reason for the price of SPNG to be dropping?

No, and that worries me. My fear is the short sellers have taken over SpongeTech (SPNG) again. If so, we’re back to square one. I won’t see the next short report until next week though, so patience is merited. Maybe I fear too much.

It doesn’t change the reality of the situation…this company is a steamroller, and God help anybody on the wrong side of the chart when the market finally sees it. Those short could get their heads handed to them at the drop of a hat.

The other possibility is a major holder is selling out, and just needed to wait for enough demand. I’ve not seen any insider selling reports, but it would explain the weakness.

Regardless, unlike SWEB, I’m more than willing to ride out almost anything for SPNG.

Are you a subscriber to the Small Cap Network newsletter? If not, you’re missing out on some great trading ideas and exclusive market commentary. To sign up, just go to the top right corner of any page of our website. You’ll be joining thousands of other subscribers who have already benefited from our news and views.

I have a confession to make…as much as I’m in love with my newest favorite small cap company - SpongeTech Delivery Systems (SPNG) - the stock is driving me nuts. I thought we finally took off the handcuffs in mid-February when the short sellers got out of their positions, and the stock rallied from 1.5 to 4.9 cents. Since late February though, we’ve fallen back to 3.3 cents.

That’s not to say all hope is lost. Quite the opposite actually…the recent retreat was on lighter volume, and yesterday, the 50 day line stepped up to the plate and played a support role.

Also (though not shown on our chart), the low of 2.7 cents on Tuesday was just enough to clip the 61.8% Fibonacci retracement line, as measured from the February low of 1.5 cents and the high of 4.9 cents. Maybe the modest selling was just a flushout, ending with a brief capitulation on Tuesday. It was a nice late recovery either way.

Regardless of whatever technical analysis you apply here, one thing is undeniable - volume. There are more buyers than sellers now; anybody looking to short this stock again should be forewarned…you’re fighting the current.

That’s why I remain so confident about this trade.

Are you a subscriber to the Small Cap Network newsletter? If not, you’re missing out on some great trading ideas and exclusive market commentary. To sign up, just go to the top right corner of any page of our website. You’ll be joining thousands of other subscribers who have already benefited from our news and views.

How would you like to parlay a $110K jackpot into a $2.75 million windfall? Don’t ask me - ask the people at SpongeTech Delivery Systems (SPNG). They saw one of their smaller customers burn through their initial car-wash sponge order in about a month. The same company opted to re-order 25 times the initial number the second time around. As a result, I estimate you can ramp up SpongeTech’s 12 to 18 month sales backlog to somewhere in the neighborhood of $19 million.

The stunning comparison - as it has been for a while - is the ridiculously low (current) market cap of $3.3 million. The icing on the cake is just how close this company is to turning a profit.

As exciting as the dollar amounts involved here are, I think the popularity of the sponges is the real message. U.S. Asia Distribution took delivery of 10,000 pieces in December, and within 25 days had sold 93% of them. The next order was for 250,000 sponges.

So here’s the not-entirely-rhetorical question…why do you think a distributor would want to re-order 250 times as many units as they did in the first order? The second key question…how do you basically sell out of something in a month?

My answer? Because the product is right on target.

I had a feeling these sponges would catch on, but honestly, I never dreamed we’d see this kind of growth this quickly. Here’s the real kicker - U.S. Asia Distribution so far has only been handling the car-wash sponges. I suspect they’ll generate similar growth when/if they bring the new ‘Puddle Pals’ (children’s bath sponge) into the mix. Their new pet sponge is being tested too.

Say whatever you want - the company is more than fulfilling their end of the bargain, which is producing sales and getting closer to profits. I can’t believe a company on track to do roughly $12 million in sales for the next year is valued at $3.3 million. I’ve said it a dozen times…I don’t think that kind of radically-undervalued situation can persist.

Efficient market? Actually - and despite my rant - yes I do think the market is efficient. I just think the market is slow in its efficiency when it comes to small caps. (Isn’t that why we like small caps in the first place?) The re-order story above is pretty much par for the course for SpongeTech. Eventually the majority of potential buyers will find SPNG, and realize an amazing transformation is taking shape. Your opportunity for gain lies in owning the stock between now and then.

Here’s the press release.

Are you a subscriber to the Small Cap Network newsletter? If not, you’re missing out on some great trading ideas and exclusive market commentary. To sign up, just go to the top right corner of any page of our website. You’ll be joining thousands of other subscribers who have already benefited from our news and views.

You probably recall small cap company SpongeTech Delivery Systems (SPNG) started a television ad campaign on Monday of this week. While we don’t have any early word yet on what the response has been, the company has since been featured on web-based TV show MoneyTV. You can watch the clip (anytime you want) just by clicking on this MoneyTV.net link.

The clip is an interview with CEO Michael Metter, who not only discusses the commercial but also quite a bit about the company and its future.

I don’t want to transcribe the entire segment here - I suggest you watch the video for yourself. I will tell you one thing though…the current back-order total wasn’t what I guessed. (Hint: it was more than my guess.)

In the meantime, the market seems to have renewed their love for SpongeTech. What we have with this recent rally that we didn’t have before is growing volume. Maybe it was the commercial garnering not just customers, but investors. Maybe it’s just that the short sellers are finally out of the way. It doesn’t matter really…the stock is making a strong breakout, and a move to 8 or 9 cents is a good possibility (at least as I see it) now that volume is strong. Beyond that, the next target would be 12 cents.

If you’re not currently in a position, I think you’ll want to be soon. The metrics for the company’s valuation still suggest a huge upside opportunity is in store; the forecasted price/sales ratio is about 0.5, but the average is around 2.0.

Again, click here to watch the MoneyTV.net interview.

Are you a subscriber to the Small Cap Network newsletter? If not, you’re missing out on some great trading ideas and exclusive market commentary. To sign up, just go to the top right corner of any page of our website. You’ll be joining thousands of other subscribers who have already benefited from our news and views.

We’ve briefly mentioned a couple of times now that SpongeTech Delivery Systems (SPNG) would soon be featured in its very own TV commercial. Well, the time has come. Starting on Monday, SpongeTech’s soap-filled sponges will be touted via television on some big-name stations. The relatively new (and mostly unadvertised so far) product will be introduced to millions of viewers. And, they’ll see the spot many, many times…the commercials are slated to run for the next six months.

I can’t stress enough how huge this is for SpongeTech, and by extension, its shareholders. This could mean millions of sudden high-margin revenue, where the company had basically none.

For most intents and purposes, the company just recently took flight - though sales catapulted when they did. For the last reported quarter they did $331K in sales, topping the previous quarter’s sales of $64. The comparable quarter a year earlier, they did basically nothing.

Now, size that big increase up with the 12-18 month order pipeline (meaning orders are in hand and scheduled) of about $16 million. And, that backlog was built up without television ads. I can’t imagine how much bigger the number will get when the sponges are shown directly to the consumer.

That said, I do have a little background on the ad schedule. There are six cable networks airing the ads, with a combined regular viewership of just a little under 150 million subscribers. Some of the networks include Fox College Sports, NBA TV, Discovery Military, and others. They all target the ideal audience for an auto-wash sponge - males between the ages of 25 and 54. The average TV viewer of these stations is likely to see the commercial at least a few times, which should be sufficient enough to prompt some orders.

I don’t know what kind of result SpongeTech expects, but I think even a very modest response rate of 0.5% of those 150 million consumers (700K buyers) would still be a windfall. At an average online price of about $10 per multiple-use sponge (3 for $20), that translates into revenues of somewhere around $7 million.

Considering they had no revenue last year, that’s a big deal - not to mention the $16 million backlog they’re enjoying. Is a 0.5% response reasonable? I honestly don’t know, but it actually seems low to me.

The other upside is the big margins you get with direct marketing. There’s no retailer or wholesaler to cut into the profit, since they’ll be selling the sponges directly from their own website or over the phone. Gross margins were a whopping 87% last quarter. I don’t know what they’ll look like this year, but when you have that much room to work with it’s tough to imagine margins (net or gross) not being outstanding.

By the way, the market cap is now around $3.2 million. I think that’s about as undervalued as I’ve ever seen for any company, though I don’t see the market letting SPNG stay that way for long.

Here’s the press release.

Are you a subscriber to the Small Cap Network newsletter? If not, you’re missing out on some great trading ideas and exclusive market commentary. To sign up, just go to the top right corner of any page of our website. You’ll be joining thousands of other subscribers who have already benefited from our news and views.

Being in the small cap stock business for a while, I’ve seen enough hype to last a lifetime. Too many small cap companies tend to overpromise, inflate their potential, and then underdeliver. And all too often, the more emphatic the hype, the less there is to tout. The ridiculous irony in the matter is this…the companies that scream and shout the least usually have the most to boast.

It was a reality I was reminded of a few moments ago as I was scouring through Spongetech Delivery System’s (SPNG) latest 10Q. The headline read…

“SpongeTech Delivery Systems, Inc. Releases 10-QSB, for Second Quarter 2008, Highlights Rapidly Expanding Sales Growth! SpongeTech Reports Current Sales Up $331,736 USD over same Quarter ending November 2006!”

A $331K quarterly sales increase for a relatively new micro cap company - not too bad at all, right? Actually, somehow that’s a grossly inadequate description.

What’s only evident in the actual filing - not the press release - is that quarterly sales soared from $27 to $331,736. More than that, the $331K quarter was also leaps and bounds better than the previous quarter’s sales (Q1 of 2008) of $64,000…..a five-fold improvement.

Though the press release didn’t say, I have no problem saying it…that’s huge, and I think it’s only the tip of the iceberg.

What really clinched their status with me was the fact that they pushed their sales up to these levels without the benefit of the new facility, which they only moved into in the last couple of weeks. If they can do a few hundred thousand without a major facility, what can they do with a bigger warehouse? I can’t imagine that $15-$16 million backlog being a problem for the company now….I think that’s all going to go to the top line over the course of the next twelve months.

As for the stock, the company’s market cap was about $1.5 million as of yesterday’s close.

What else can I say? The stock is valued at what I think is about 1/20th of its true worth, and the company just proved the modest sales increases weren’t a fluke.

As much as I don’t like hype, if you only take away one message, I really hope it’s this - Spongetech just proved (to me anyway) they’re the real deal. They said the business was there, they said they were going to get it, and then they went out and got it. They’re on track to get even more and more of it in the future. As of right now, SPNG is my new favorite stock. I really hope you own some, and I can’t say I’d blame you for wanting to own more.

Side note: The last time we looked, the short holders were trying to filter out. If there are any remaining short positions, I think this news could drive the nail in the coffin. That’s actually good for the stock, since all that buying (to cover) could further fuel any rally.

Here’s the press release.

Are you a subscriber to the Small Cap Network newsletter? If not, you’re missing out on some great trading ideas and exclusive market commentary. To sign up, just go to the top right corner of any page of our website. You’ll be joining thousands of other subscribers who have already benefited from our news and views.

We’ve been chronicling the saga of this small cap stock for only a couple of weeks now, but I’ve got to say Spongetech (SPNG) has already impressed the heck out of me. Today we got another layer of good news - South American Trading Company just submitted a huge re-order for the company’s multi-use auto-wash sponge.

I don’t want to blow it out of proportion, but the fact that this company (proverbially and literally) ‘came back for more’ after receiving a smaller order in September provides good evidence of demand for the product.

As it turns out, I’m not the only person who agrees. The president of SA Trading said the sponges had only “scratched the surface” of their potential in that market. Moreover, he put his money where his mouth is. Specifically, he put $2.4 million worth (wholesale) of sponges into his inventory. (Money speaks much louder than words.)

As of our last look, the company had a backlog of $14 million in product, to be delivered over the next twelve months. I’m sure they shipped some between the and now, but I’m guessing this brings the twelve-month backlog up to the $15-$16 million range. Considering the market cap is now around $1.5 million, I feel SPNG is way undervalued….trading about 1/20 of what I think it should be. Compare the P/S ratio to any other company - it’s just crazy.

The other big consideration here has been the likelihood of a lot of short interest. The short-sellers ended up winning the battle we discussed back on December 4th, ultimately stopping us out of our SPNG trade. However, we’ve also heard all the short sellers have been looking to make an exit after the stock started to respond to good news over the last several days. The high-volume churn yesterday may have been them doing just that.

With fewer people interested in keeping it lower now, I think SPNG has the green light to go higher. I’m not diving in just yet though…I want to be sure we don’t get a repeat of December 4th and 5th. But, I really like this stock under 3 cents, especially with sales firing on all cylinders. 

Here’s the press release.

Are you a subscriber to the Small Cap Network newsletter? If not, you’re missing out on some great trading ideas and exclusive market commentary. To sign up, just go to the top right corner of any page of our website. You’ll be joining thousands of other subscribers who have already benefited from our news and views. 

OK, I guess I was wrong about Tuesday being the day the short holders of Spongetech (SPNG) attempted to cover their shorts gracefully - with minimal pain. The stock actually closed a little lower, though the very low volume today tells me there’s still some unfinished business to take care of.

SPNG closed at 4.4 cents…up and off that low of 3.5 cents. And once again we saw some pretty good strength (and volume) late in the day (take a look at the chart). Though it didn’t pan out today like I thought it would, I attribute the tepid day to a lack of effort from the shorts who still need to cover. In other words, the potential short-covering rally is still on the table.

And if you’re wondering what the heck I’m talking about, click here.

Also, here’s the bid/ask scenario. Looks pretty balanced to me (which is a good thing), though the ask side of the table seems a little more robust than the bid side.

We just realized there was a typo on the data table from this morning’s profile on Spongetech Delivery Systems (SPNG). The intended stop level was supposed to by 2.5 cents, not the 5 cents listed up at the top of the report.

I’m sure the majority of you guys and gals caught the error with no problem after reading the piece…we specified 2.5 cents as our stop level in the commentary, and it wouldn’t make much sense to issue a stop at the current price. Just wanted to make sure everyone was on the same page.

As far as trading goes, we’re off to a healthy start. Volume has been great, and the stock is up nicely without running rampant. Nobody has had to pay more than 6 cents yet.