ERG 0.00% 6.6¢ eneco refresh ltd

ERG Fact or Fiction the Story Unfolds

  1. 99 Posts.
    The ERG Story is an interesting One

    A journey full of wonderful stories however does the substance reflect the reality.

    The numbers for June 2001 reflects an underlying loss of $56.8 million. This of course is subject to financial interpretation, because the market has never been truely informed about the performance of the company.

    This is clearly noted in the December 2001 half year result. This announcement goes a little way to disclose some of the underlying issues with the company.

    The company made a very large loss for the half year. If you strip out the one off individual items as disclosed in the half year result the underlying business still made a loss of $43.2 million.(Loss $195,567 less one off adjustments $152,338)

    If you apply a very simplistic view on the generation of profits or in this case losses. Then we are looking at a full year loss of $86.5 m. It is understood that the company has flagged a profit in the second half however if history is a reflection of the future then why would you believe this assumption.

    If the ASIC and the ASX were serious about dealing with the corporate cowboys, it would be reasonable to request that a company with a going concern issue should be forced to adopt a more stringent reporting regime.Why has ERG been silent about its profit/loss position. In this case at a minimum why are they not forced to adopt a quarterly reporting profile to keep the market fully informed.

    The company has made comments abouts its profitability in the past and failed to make the market aware of profitability when it would be considered reasonable that a profit warning was on the agenda. Why issue a prospectus in the market place for a rights issue and then issue a profit result that sends the stock into a free fall.

    These are simple questions which are supported by facts.

    I am often amused by comments regarding stocks when the facts have been disclosed in a public forum via the issue of 4B.

    Going concern qualifications mean something. The word DANGER should be on everyones lips.

    This stock is a Dangerous Play and should only be reserved for those with a very high tolerance for risk.

 
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