Southridge Enterprises Inc (SRGE)

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Southridge Enterprises, Inc. (PINK:SRGE) Luring Investors

by Kaloyan Gadzhev
Nov 23, 2012

If one were to look at the financial reports and press releases of Southridge Enterprises, Inc. (PINK:SRGE, SRGE message board) one would probably wonder why it's trading below a penny. But if they dig deeper the reasons will become apparent.
On Nov. 22, SRGE closed up 10.84% at $0.0092 with nearly 99 million shares changing hands. This happened after the company issued a press release claiming it was in discussions with "Major NYSE Listed Metal Producers."


In the press release SRGE fails to name any NYSE listed company, but states that it may be selling the Cinco Minas property, and mentions amounts between $550 million and $600 million. SRGE also claims a sale would lead to a $0.20 dividend for shareholders. Then why didn't the price go higher?

There is one simple reason - traders don't trust what SRGE is claiming. The company has been less than perfect with its filings in the past, and although at this time OTCMarkets lists it as "OTC Pink Current" the latest report available is for the quarter ended May 31.

The fact that the legal counsel for SRGE is Carrillo Huettel LLP, doesn't help the company's credibility at all. Carrillo Huettel has been involved with a lot of the ugliest pumps like Sunpeaks Ventures (PINK:SNPK) and HDS International (PINK:HDSI). Carrillo Huettel was investigated by the SEC in connection with a pumper who was suspected of violations of federal securities laws.

Some traders have outright stated that "SRGE is a scam" and there may be some merit to their claims. About an year ago the company made an attempt to convince traders it was the real deal using this video. The problem with it is that it's actually a video that was originally uploaded in 2007 with a few frames edited in to display the SRGE logo. This is hardly a good way to increase credibility.

A company which claims it has close to $2 million in cash should be able to aford filing with the SEC at least. A company which claims to have generated close to a million dollars of revenue and net income of $311 thousand should also be able to pay for someone to audit their reports.

SRGE isn't doing either. Instead it chooses to pump out hyped press releases to lure in investors.

http://www.hotstocked.com/article/41072/southridge-enterprises-inc-pink-srge-luring.html