Southridge Enterprises Inc (SRGE)

[TMLonggun]

It seems like you didn't read my posts. The market values SRGE at 10 M. An acquiring company will not pay just market cap, it would be market cap + a modest premium (as I said numerous times). This premium will likely be in line with the industry and not the largest % in the history of the world. It is up to investors, companies, and the market to determine something's value not a PR from the company trying to sell. You're wrong, they don't need all outstanding shares at Friday's close, they could acquire a 10% stake under the radar (no one has as far as I know) and then start buying on the market (foolish) or making a deal that management and primary shareholders would approve, gain 51% of the vote to approve takeover at x price and thus making it irrelevant that you refuse to sell your shares or vote yes. The vast majority of people offered an instant 50% return would take it.

The market cap is a calculation # of shares x pps = the current market value or price of the company.

For all those saying market cap doesn't matter/is useless/irrelevant all I can say is REALLY?

When you are investing you never care about how much you pay? Seriously??

P.S. look through the archives of buyouts for the past few years, see if you can locate more than a couple over 100%. Heck just pick a few of them and apply the same value metrics to SRGE. I did and found it hard to get beyond 15-50 million without getting into insanity land. Even 20 m would be a fair offer in my opinion as this is more than a double for what they paid for the land and that cash would allow them to do a lot of exploration on their other properties and possibly generate a discovery.

I haven't been able to find much information on their production, but if they are actually profitably producing it does change the value proposition in which case it may be best to just keep the property and mine it for current shareholders, or leverage it for a slightly enhanced (but nowhere near where many posters here imply) deal.