Southridge Enterprises Inc (SRGE)

[stervc]

EarnestDD, with your SEC Deregistration thoughts…

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=79194948
Just because a stock deregisters itself from the SEC doesn’t mean that it is a scam. This should not cause any alarm. SRGE made the decision back in April 2011 to file with the SEC under Section 15/Rule 12g to deregister their shares with the SEC and continue to trade on the OTC Markets. SRGE deregistering their shares with the SEC is really not as big a deal as it might sound. Stocks do this all of the time. It is only to terminate or suspend the duty to file reports with the SEC.

Most pink sheet stocks that many investors trade/invest in are already deregistered with the SEC… investors just don’t know or realize it. It just means that they will not be required to file their financials, 8-Ks, and/or any other reports per SEC requirements; primarily, audited financials won’t be required to file with the SEC or have to be completed. This is a huge savings for the company to where they are saving themselves lots of money.

The key thing about being deregistered is the fear that this will create a lack of transparency. To fix the lack of transparency issue, this is why SRGE had elected to trade on the pink sheets within the OTC Markets realm as this is also recognized as a now respected market arena for transparency. The OTC Market requirements come in to offer a cheaper form of transparency.

Understand, transparency is one of the main reasons why a stock generally files with the SEC that trades, but now with the emergence of the OTC Markets being respected for delivering transparency, many companies have chosen this route, especially since it is a much cheaper transparency standard to adhere to. Investors have accepted this throughout as another means of existing to prove the legitimacy of a company without having to file costly audited financials until being able to afford filing such. By all means, I’m not trying to downplay audited financials, but until a company is either operational or near being operational to where such is able to be afforded, then money should be saved by taking the OTC Markets route for transparency until such time.

Again, this is really not such a big deal as it positions the company to not be required to SEC filing requirements and to not be subjected to the cost and time constraints involved until they are financially ready to do so in the future. Some companies have decided to always remain within the OTC Markets which is fine too. Any news of substance will be recognized just the same by investors with or without this deregistration. This is basically a norm that many companies are now implementing. So in short, I still believe we are fine here with SRGE.

v/r
Sterling