Southridge Enterprises Inc (SRGE)

[stervc]

patrick & ALL, true & to SIGNIFICANTLY consider...

I agree, but I also have a few things to significantly consider that are very important for SRGE investors to understand. I also think that it is important for SRGE investors to understand that the Fiscal Year Reporting for SRGE does not mirror the same time frame as the basic calendar year. See below…

Normal Calendar Year = January through December
1st Qtr = Jan – Feb – Mar
2nd Qtr = Apr – May – Jun
3rd Qtr = Jul - Aug – Sep
4th Qtr = Oct - Nov – Dec


SRGE Fiscal Year Reporting = September through August
1st Qtr = Sep – Oct – Nov
2nd Qtr = Dec – Jan – Feb
3rd Qtr = Mar – Apr – May
4th Qtr = Jun – Jul – Aug

Understanding SRGE’s fiscal year reporting could help eliminate some of the confusion on the time frame asking why the $3.14 Million in Revenues was not reported within this last quarterly filing by SRGE. This most recently quarterly SRGE filing was for the 3rd Qtr Ending May 31, 2012 that was recently released to get SRGE to OTC Markets Pink Current Information Status. From the PR below, SRGE stated that the $3.14 Million in Revenues was for its 4th Qtr Year Ending August 31, 2012:
http://ih.advfn.com/p.php?pid=nmona&article=54054364

This means that we won’t be able to see the $3.14 Million in Revenues in this recent filing because it was revenues generated in a different quarter; the 4th Qtr. This means that we will see the $3.14 Million in Revenues within the upcoming SRGE filing which should be the SRGE Annual Report coming up next based on its fiscal year reporting requirements.

Now significantly consider the recently 3rd Qtr filing for SRGE below that reported SRGE being profitable with Net Income of $311,611 on revenues of $942,314 for the period ending May 31, 2012:
http://www.otcmarkets.com/financialReportViewer?symbol=SRGE&id=93307

Now consider these thoughts as a couple of questions…

~ If SRGE generated Net Income from just this one quarter of $311,611 on revenues of $942,314… then how much Net Income will there be from the upcoming filing with revenues of $3.14 Million?

~ How much would this equate to over four quarters versus just one quarter?

I think I’ll let investors do the math for themselves to determine an Earnings Per Share (EPS) to derive where SRGE should fundamentally trade just on this info alone. However, when you do this, make sure you take under consideration these 10 Very Important Variables for SRGE…

10 Very Important Variables for SRGE
Variable 1 ** The $3.14 Million was from a mill capacity of 60 tons per day (tpd).
Variable 2 ** SRGE PR-ed increasing the mill capacity from 60 tpd to be 500 tpd.
Variable 3 ** Consider that the increase in mill capacity of 500 tpd is 8.33 times greater than the 60 tpd that generated the $3.14 Million.
Variable 4 ** Consider $3.14 Million was from the company only processing over 9,000 tons of ore.
Variable 5 ** Consider the PR to have confirmed resource amounts of 235,000 oz. gold.
Variable 6 ** Consider the PR to have confirmed resource amounts of 23.3 million oz. silver.
Variable 7 ** Consider that all of the above valuation that you would derive only accounts for 20% valuation within the Cinco Minas.
Variable 8 ** Consider this is only from the Cinco Minas property owned by SRGE.
Variable 9 ** Consider that SRGE owns an additional 5 other properties.
Variable 10 ** Consider its recently added Board of Directors.

I could come up with many more variables to consider, but I think no matter how you derive a fundamental valuation for SRGE, you will get justification that supports how SRGE could be trading well over $1.00+ per share. If some who are ”pro SRGE” are having problems determining this, then maybe we can do a ”step by step” ”Group Fundamental Derivation” considering the 10 Very Important Variables for SRGE I listed above to help derive this fundamental valuation.

With SRGE obtaining OTC Markets Pink Current Information Status, a huge piece of credibility has been put in place. OTC Markets have certain mechanisms in place and very stringent requirements that are well respect throughout the market as credible. The market has granted the seal of approval for legitimacy for the OTC Markets ”Tier” rating systems to be acknowledged for transparency.

When a company achieves obtaining OTC Markets Pink Current Information Status, it is to be taken serious in my opinion, especially when they are showing other areas of current growth within their operations to confirm its being ”profitable” amongst many other achievements.

v/r
Sterling