ERG 0.00% 5.9¢ eneco refresh ltd

ERG - ECard another great deal

  1. 99 Posts.
    Ladies and Gentlmen

    Just for the record...ERG entered into a JV with ANZ and TLS to start up ECard...a deal of a lifetime. Each particpant injected cash and some so called technology.

    ERG now finds itself in a fire sale situation and crystalises $5 million in cash against an intial contribution of some equity in cash and some of it intellectual property.

    The company generates a significant loss in the write down in the investment and now claims that this deal had some value.

    If I am not mistaken we are still in a net loss situation. From previous company correspondence, ERG injected $10 million in cash into this JV only to generates a $5 million profit against a previous writedown.

    If I am not mistaken many investors poured money into ERG based on this transaction and considered this transaction would generate a recurring revenue stream only to see that this is far from a reality.

    The market absorbed the announcement and decided it had little value.

    The $5 million contribution does very little to stem the flow of cash and the tiddle wave of problems that exist.

    Shareholders, whoever they are must take this opportunity to show the directors that although this transaction delivers a bottom line profit it does not compensate for the hype and shareholders who purchase a slice of the dream at a much higher level.

    The atlantic waters are cold..do not expect a smartcard to be a life raft...it has little depth and substance and will not support the magnitude of shareholders who purchased a ticket for a transit trip on the famous Titanic.
 
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