Southridge Enterprises Inc (SRGE)

[I-Glow]

Secondly, I would like to ask you if there is anything illegal or remotely wrong--purely from a business standpoint--with selling a company for a price even if it had no assets or revenues.

Let's see if the company uses fake financials to conceal they have no assets - it is illegal. Or to fake profits - see Bernie Ebbers - Worldcom capitalized their leased lines, reclassifying them as capital investments instead of operating costs. Which made the company look profitable. You can find Mr. Ebbers in Federal prison.

As for the $500MM question the answer is very simple - whatever company made the purchase assumed the client list was extremely valuable. In business the customer or client list is considered a asset. So your initial premise is wrong that it was a non-asset based business - the asset was the list.

I am ready to take the Alex Smid discussion to the next level.

Also, no company is going to buy another without audited financials.

IG