Energroup Holdings Corp (ENHD)

According to Make Good Targets, the EPS growth rate for 2008 will not meet the GeoTeam minimum 30% criteria. This is due to dilution issues  However, EPS growth for 2009, assuming the share structure does not change, is expected to meet the EPS 30% growth criteria.

The GeoTeam is attempting to verify data as it relates to insider ownership and institutional ownership.

Key financial targets with regards to the reverse merger transaction:

In connection with the Share Exchange Agreement, management entered into a 'make good agreement' and has placed 4.0 million of its shares in escrow to secure its obligations to meet specific 'Earnings per Share' targets for 2008 and 2009. If the targets are not achieved, a number of shares derived from a formula will be transferred pro-rata to the investors in the private placement.

Earnings targets:

1. $15.9 million in after-tax net income for 2008. (This would imply Earnings Per Share of .76 )

2. $20.9 million in after-tax net income and fully-diluted earnings per share of $0.99 for 2009,

GeoTeam Note: We are assuming that these targets assume the 2007 tax rate of 7.6%

Earnings targets adjusted for a fully taxed situation:

1. $11.38 million in after-tax net income for 2008. (This would imply Earnings Per Share of .54)

2. $14.96 million in after-tax net income and fully-diluted earnings per share of $0.71 for 2009.

Source SEC form 8-K ( January 7, 2008 )

ENHD is an illiquid stock, with a large bid/ask spread. as the Reverse Merger Shares are still not effective.

Outstanding Shares are approximately 21 million shares.