SPNGE.ob: Shares of SpongeTech traded down on Monday after trading resumed without the filing of new financial reports. It's been my opinion that even while the stock is not trading, sales are still ongoing and chances are that the stock could recover if sales were continuing at or near the same pace as they were before the recent turmoil. My opinion also comes with the assumption that the re-stated financial reports are not too far off from where they were previously.

The SpongeTech stock is very risky and more speculative than ever before right now, but I felt that the potential for a reversal was good enough to average my position down to the five cent level - after some Monday buys.

Investors should keep an eye out for the re-stated financials and possible PR updates concerning ongoing sales and operations.

The lawsuits are a non-issue, in my opinion, because I don't think that the company was intentionally trying to mislead investors. To the contrary, it looks to me as if SpongeTech was attempting to become more legit by conducting a reverse split and looking to chase the day traders and speculators out of the stock.

Disclosure: VFC is long SPNGE.

PPHM: Shares of Peregrine traded with some strength on Monday after the company opened trading after having have conducted a 1:5 reverse split.
The company also took the opportunity on Monday morning to announce that former Genentech Senior Executive Dr. Robert Garnick has joined Peregrine as the Head of Regulatory Affairs.

I maintain that PPHM is full of future potential based on the bavituximab and Cotara pipeline, although those products have yet to hit Phase III.

I'll continue to accumulate on any dips.

Of note, the stock will continue trading as PPHMD until the end of the month.

Disclosure: VFC is long PPHM.