So getting past the 3 cent mark is the key? Yeah, I think it’s a big part of it. On the other hand, I have to voice my concerns.

I always get a little skeptical when a stock moves from 1 cent to 3 cents in four days, and from 1.5 cents to 3 cents in about a week. The latest trip from a low of 1.7 cents to 3 cents took about a week as well. That’s just a little too much volatile bullishness for my comfort.

I love breakouts, but breakouts that last tend to be born out of long consolidation periods. We’ve not seen any consolidation from this penny stock - just a crapload of volatility.

That’s not to say I won’t jump on it if SPNG cracks the 3 cent ceiling. I’m just saying a breakout would be apt to have longevity if there was a little more of a wind-up. Still, you gotta’ like the action.

As for a ‘value’, I still contend the stock’s worth something around 20 cents, based on what we know now. The company’s been growing sales and earnings like I manage to grow weeds (a lot), but has also been trading company stock to finance the promotions and advertising to drive those sales. The per-share benefit of all the dilution is still positive though, and by my math and the most recent sales guidance, I think a near-term target around 20 cents is fair.

That said, hopefully you’ve not fallen into the trap of thinking that stocks trade at their ‘value‘. They don’t. Penny stocks in particular are subject to the market’s whims. Eventually, yeah, SPNG’s pricing might make sense. I’ll be trading the ebb and flow in the meantime. Watch the 3 cent mark until further notice.

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