intelligent investment mag--erg16.5
Below is the article out of Intelligent Investment Mag--that I just received by snail mail--I've typed it out verbatim---haven't changed any words. ===================== Profit Result ERG 16.5c AVOID If we were bound to award just one company the title of perennial underperformer, ticketing business ERG would have to be a strong contender. We haven't covered the company since way back in issue 156 July 04 (AVOID----$0.59c) but, in view of the shareprice collapsing 72% since then, we thought we would take a look at the final result. Dr Allan Sullivan was appointed chief executive in early 2004 but he doesn't seem to have been able to turn the company's financial performance around yet. While Sullivan trumpeted an improved loss of 11 million in 2005 (from a loss of 53 million in 2004) the operating cash flow was far worse than the previous year at 44m. And the company's accounting is still questionable, with revenue numbers consistently remaining well above actual cash receipts. All you really need to know about this company is that, despite being in a supposedly high growth industry, it has accumulated losses on the balance sheet of almost half a billion dollars. Yes, that's right----half a billion. ERG typifies the sort of investment any sensible investor should avoid, and even some recent director buying does little to enthuse us. This company has a track record of over promising and delivering very little, really. It remains, sadly, a definite AVOID.
ERG Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
