Dow Jones 12373.41 +133.40 6:16 am PST, February 13, 2008 NASDAQ 2320.04 +0.00 For info, visit access.smallcapnetwork.com S & P 500 1348.86 +0.00 Change your subscription status here Russell 2000 705.48 +0.00 VOLUME 08 : ISSUE 14 Spongetech: Good Citizenship, Chart Unchained? Sometimes it's so easy to get caught up in "takin' care of business" you forget about "takin' care of each other". The same is true - maybe especially true - when you're a fast-growing company trying to stay ahead of the competition. That's why news like today's is not only a breath of fresh air, but a reminder there are more important things than huge returns on your investments. That said, I still have something investment-oriented to pass along about Spongetech Delivery Systems (OTCBB: SPNG) shares...very good news.  In a nutshell, Spongetech has made a major financial gift commitment to autistic children. Remember Puddle Pals - the children's bath sponges that hit the market in a big way a couple of weeks ago? A percentage of all the revenues generated from the sale of Puddle Pals will be donated to a combination of organizations in support of children with autism. And let me stress something here...they didn't say a percentage of profits - they said a percentage of revenues. That's much different, as it's a much bigger number.  The press release didn't say how much had already been given, nor did it indicate how much money this would approximately mean. However, I think we can gain some perspective on the size of the gift by using some numbers from the Puddle Pals press release. According to the announcement, a total of 270,000 new pet sponges and children's sponges have been ordered, and the total size of the aggregate order was $2.38 million. Of the order, 36,000 were for Puddle Pals. So, I'm estimating (assuming the pricing was about the same for each type of sponge) about $317K worth of Puddle Pals were sold with the order in question. Taking out 3% of that figure translates into a donation of about ten grand.  Here's the thing though...that was just one order from one customer. Spongetech has only had this product in hand (literally) for a few days. As sales ramp up, so too will the size of the gift. I honestly think the Puddle Pals alone could be a multi-million dollar venture.  The complete press release is below. You may want to take a look for yourself because it has a point - one I didn't mention - about autistic children's self-sufficiency. Instead, I wanted to bring up something I know many investors have had on their mind about SPNG's short interest.   The Other Thing I Wanted to Talk About...  We've mentioned a couple of times now how a heavy short interest may have been weighing in on SPNG shares. That actually had the potential to be a good thing for long SPNG positions, since a little shove in a bullish direction could have jump-started a short-covering rally.  We thought the short owners were going to trigger such a trap on December 3rd, and then again on January 15th, We saw high-volume rallies both of those days, but these guys managed to escape by the skin of their teeth. Nonetheless, the strong buying effort served as a wake up call, and a reason for them to want out. The whisper was these short holders were trying to scale out quietly, and gradually. According to the company, the big/problematic short positions have been covered. The company also mentioned to me as of Thursday they're off the exchanges 'heavy short interest' report.  Though I haven't verified the latest update myself yet, I believe it. I've been watching the short interest shrink for a few weeks now. Plus, look at what started happening on Thursday and hasn't stopped yet ...strong, uncontested buying.  Prior to Tuesday we were seeing all the late-day activity (presumably the short sellers) progressively wind down; on Tuesday we saw little to none of that. We did, however, see SPNG close above its 50 day moving average line for the first time since November 30th. So, something's obviously different.  As always, anything can (and will) happen, but I believe SPNG shares could finally 'get started' after overcoming tremendous odds. Remember, the company's doing more than their part in terms of providing results.  By my calculations they have roughly $17 million worth of orders in hand for the next 12 to 18 months, yet the current market cap as about $3.1 million. You don't have to be Einstein to know that's more than a little backwards.  Here's the full news release.    SpongeTech Delivery System to Donate a Percentage of Puddle Pals Revenues to Help Autistic Children!  Wednesday February 13, 2008, 8:30am ET  SpongeTech Donating 3% of all SpongeTech Puddle Pals Revenues to Various Autism Groups and Foundations to Help Autistic Children !!  NEW YORK, NY (PRNewswire)--SpongeTech Delivery Systems, Inc. (OTCBB: SPNG) is pleased to announce that it will be donating 3% of all SpongeTech Puddle Pals product revenues to various autism groups and foundations to help autistic children. One of the biggest challenges that autistic kids face is to be able to become self sufficient and grow into happy and productive individuals as adults. The Puddle Pals product is fun and easy to use for kids, and SpongeTech has been told that Puddle Pals product can be a great tool to help enable some autistic children to be able to become more self sufficient in their cleaning habits and personal hygiene.  SpongeTech COO Steven Moskowitz commented, "We are really happy to be able to donate a percentage of our Puddle Pals product revenues to various autism foundations to help autistic children live better and more self sufficient lives. It is great to be able to be in a position to give back a little of our success to a very worthwhile cause and we look forward to this opportunity to work with the autism community. We fully expect the Puddle Pals product to be a very popular and successful product in the children's bath product market, and we hope to ultimately be able to contribute a lot more."  For more information please contact Investor Relations at 1-877- SPONGE T for Bill Young or visit the company website at: www.spongetech.com.  About Spongetech Delivery Systems  SpongeTech Delivery Systems is a development stage company which designs, produces, markets and distributes cleaning products for vehicular use utilizing patented technology relating to sponges containing hydrophilic (liquid absorbing) foam polyurethane matrices. The Company's sponges are specially configured with an outer contact layer and an inner matrix, which is loaded with specially formulated soaps and wax that are released when the sponge is applied to a surface with minimal pressure. The Company's products are currently designed specifically for vehicular cleaning use. However, the Company is exploring the possibility of using its patented technology for the development of sponges for other uses, including for use with anti-bacterial, bath and kitchen soaps for household uses, as well as for use as a children's bath foam sponge. "Safe Harbor Statement" Under The Private Securities Litigation Reform Act of 1995: The statements in the press release that relate to the company's expectations with regard to the future impact on the company's results from new products in development are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The results anticipated by any or all of these forward-looking statements may not occur. Additional risks and uncertainties are set forth in the Company's Annual Report on Form 10-KSB for the year ended December 31, 2005, the Company's Quarterly Report on Form 10-QSB for the first quarter ended March 31, 2006. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectations.  Contact:  SpongeTech Delivery Systems, Inc.  Investor Relations:  Bill Young,  1-877-776-6438  wayoung55@aol.com  SOURCE: SpongeTech Delivery Systems, Inc    We Value Your Feedback   Got comments, questions or suggestions? Send 'em on over: Email the Editor If you wish to send a written request or inquiry, please send it to our physical address: TGR Group, LLC 4653 Carmel Mtn Rd Suite 308 #402 San Diego, CA 92130 RF Micro Devices Jumps on New Wireless Product News Looks like we issued this stock pick just in time. On Monday, RF Micro Devices (RFMD) unveiled four new products or technologies at the Mobile World Congress in Barcelona ....a 3G transmit system, new location-based services, integrated RF shielding, and the Polaris 3 silver (a radio/phone). With the exception of the Polaris, I don't really know what all the other stuff is - nor do I care. What I care about is whether the market liked it, which it did. RFMD shares jumped 6.5% on the news.  Personally, I thought four back-to-back press releases was gratuitous. I would have saved some ammo for later. All the same, the fact that they came to the conference with new toys in hand confirms something I mentioned on Thursday when we issued the trade alert...  "Yes, the company blew it last quarter. There's no doubt about it. I don't know that the next quarter will be much better. But, I have to think a company that has been highly profitable before can become so again."  Not that Monday's news instantaneously solved all of RF Micro Devices' woes, but I think it's a hint they're thinking in the right terms now.  Remember, we're not getting married to RFMD. Our target is modestly set at $4.01. We think the company is going to have enough good news in the near future (like above) to stop the bleeding and soothe the pain. None of it is really evidence that all's right again. If things eventually look better longer-term, we'll revisit. In the meantime, we got a good jump on this trade.  Click here to see the chart.    Nice Mention Of Applied DNA In Print Media You don't need me to tell you media attention can be bought. That's what press releases are for, and they're just one of many ways to get your company into the limelight for a few moments. However, it seems like the highest quality and most meaningful attention any company could ask for is the kind that's free - when you're part of 'organic' news. That's why I feel Newsday.com's discussion of Applied DNA (APDN) on Monday is just huge...an unbiased source took a long, credible look at the young, anti-counterfeit company.  There was nothing in the article we didn't already know. Newsday basically told the same story we have been telling for a while, focusing on the Supima cotton venture. The reason the article is so exciting, however, is the company is being put in front of a whole new audience that may not have heard of it otherwise. (Believe it or not, not everybody reads the Small Cap Network newsletter or scours the web for small cap news.)  Newsday is one of the biggest regional newspapers in the country, centered right in the heart of it all - New York. It's a big audience, with a lot of investment-savvy players. I suspect that's why APDN shares are still moving, even after a huge run over the last couple of weeks. Like I said, it's the kind of publicity you couldn't pay for if you wanted to.  Here's a link to the article on Newsday.com. Click here to see the chart.  Subscribe Information is power and timely information is profitable. Become informed and profit from Small Cap Network Profiles and Trading Alerts by becoming a Preferred Member today. There is no cost associated with your email subscription. Add your email address below and make sure to check your email inbox and confirm your opt-in request to start receiving the Small Cap Network Email Newsletter on a regular basis. To ensure newsletter delivery, you can add any additional email addresses you may have to the Small Cap Network Member List. Receiving the Small Cap Network Newsletter in multiple locations is the best way of making sure you don't miss the next investing or trading opportunity! 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For web based email addresses, the Small Cap Network recommends @yahoo.com or @aol.com for timely and reliable email newsletter delivery. D I S C L A I M E R: The Small Cap Network, its website and email newsletter (hereafter, cumulatively referred to as "SCN") , is an independent electronic publication committed to providing its readers with factual information on select publicly traded companies. SCN is owned and operated by TGR Group, LLC ("TGR"). All companies are chosen on the basis of certain financial analysis and other pertinent criteria with a view toward maximizing the upside potential for investors while minimizing the downside risk, whenever possible. Moreover, as detailed below, TGR accepts compensation from third party consultants and/or companies, which it features in the publication and circulation of SCN. To the degrees enumerated herein, SCN should not be regarded as an independent publication.  Click Here or go to http://access.smallcapnetwork.com/compensation_disclosure/ to view our compensation on every company we have ever covered, or visit the following web address: http://access.smallcapnetwork.com/profile_disclosure/ for our full profiles and http://access.smallcapnetwork.com/alert_disclosure/ for Trading Alerts.  TGR Group, LLC has been paid a fee of $30,000 cash and 750,000 shares of newly issued restricted stock by Spongetech Delivery Systems Inc. for coverage of the Company. Additionally, one of the managing Members of TGR Group, LLC has purchased 150,000 shares of Spongetech Delivery Systems, Inc. in the open market with an average cost basis of $.035 cents per share. TGR Group, LLC has been paid a fee of $30,000 cash and 1,000,000 shares of newly issued restricted stock by Applied DNA Sciences Inc. for coverage of the Company. 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