Southridge Enterprises Inc (SRGE)

[stervc]

With the SRGE “Going Concern” Statement…

Since SRGE has confirmed within this recent filing and within some not long ago PRs that they have bought back shares, this confirms that there are no dilution concerns. Actually, it’s quite the contrary. Think about it… these same SRGE financials reflect that they are profitable. This confirms even more what I have further posted below.

Respectfully, a ”going concern” statement is made as a standard generally within the filings of some companies regardless to how much is generated in revenues. I can show you a company that is on track to make over $20 million for the year and has a ”going concern” statement within their filings. You will see this in some of the filings for a company which basically is like a disclaimer.

To further understand the “going concern” statement and why companies use such a conservative delivery as a disclaimer for their filings, read an earlier post I made within another forum on the topic below…

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58593124

About a “Going Concern” Statement…

Most companies that are fully reporting and file on a regular basis have some kind of a ”going concern” warning within their filings. This is nothing more than a safety precaution that companies use as a way to cover them for a “worst case scenario” situation if for some reason their company does not execute their business objectives.

The ”going concern” statements that you see in numerous filings is also a way for a company to remain very conservative to make sure they don’t get into any trouble if for any reason anything within their filings or PRs are considered too forward thinking where shareholders could have felt that they might have been misled by the company.

I was in XCHO last year and it had gone from .035 to .55 per share. Their sister company, NPHC, had gone from .05 to .99 per share a little over a year ago. Both of those companies had ”going concern” statements within their filings along with thousands of other companies. This is why I think it is important to understand the intent behind such conservatism from when these statements are within a company’s filings.

Take for another example what PSTI PR-ed that trades on the NASDAQ as they have been publishing a ”going concern” warning for the past 3 years:
http://www.globes.co.il/serveen/globes/docview.asp?did=1000502736&fid=942

I’m not saying to ignore any “going concern” warnings within any company’s filings, but I am saying that they do not pose a negative threat that some might perceive. Doing your due diligence (DD) and knowing what you hold is the solution to have a better understanding of a company’s ”potential” to be worth taking the risk to invest in or not.

v/r
Sterling

v/r
Sterling