defibrillater required, page-16

Morning Contrarian

I have been a shareholder for a considerable length of time now (since the RS days) and i have only ever been a buyer of ERJ. If you knew me you would find that i am a very positive person by nature even tho my recent posts on ERJ dont reflect that.
It is my belief that the technology has great commercial applications.
My issue is with the amount of time being taken to bring this technology to the market. The 1st (and only PPA) was agreed in Feb 11 and thru poor management/planning the install has been delayed. 2x MOU's were signed in Oct 11 and we have heard naught since. No announcements of any significance since ! Are the ERJ technicians on the ground assessing potential sights under the MOU's ? or are they tied up with Carnarvon ? We dont know. I only hope that there is not a 12-15 month time lag between the signing of POS MOU and any installation.

On the Carnarvon install....this was originally scheduled for Oct/Nov 11 but has apparently been delayed because someone forgot to lodge the appropriate requests for approvals. According to the 22/12 ann these approvals are yet to be granted !!!!!!!!!!!!!
Further, on 22 Dec 11 it was announced that the heat exchanger had arrived in Perth from Sweden. YAY ! Tell me how did they expect to install the Powerbox in Oct/Nov without a bloody heat exchanger ??????
It all appears to be poorly handled to me, very sloppy !

IMO ERJ management have been far to conservative in the way they promote themselves and the company. We have no media coverage, no broker coverage. How many industry conferences was ERJ represented at in 2011 ? Did they attend Diggers and Dealers and speak to companies planning the transition from exploration to mining ?

The sp has been systematically hammered due to a combination of placements and bond conversions.The state of the market has only exacerbated the problem. Number of shares on issue have almost doubled since i became a s/h (post current rights issue). On that note, the rights issue is NOT open for 13 months as you stated, it closes on 1 Feb and the shortfall closes on 30 April. Note we will not have the 1st box installed by 1 Feb but MAY have achieved this by April.
Why would existing holders take up the rights if they can buy cheaper on market ?? This is poor planning imo.
ERJ needs a cornerstone investor not piecemeal placements at heavy discounts to an already battered sp.

ERJ will really have to pull its finger out in 2012 and convert their "massive sales pipeline" into actual sales agreements and get their boxes on the ground and running smoothly. The "market" isnt excited about MOU's and indeed the onmarket support for ERJ shares is just not there atm.
A move to the original debt funded model would also be a great way to minimise further dilution as we are approaching 1billion shares on issue.

You said "They are controlling the SP in the exact manner that they have planned to."
I certainly hope this is not the case and who exactly is picking up these shares you speak of ? It certainly isnt management, i havent seen any change of directors interest notices !!! Infact, that would be an excellent way for them to communicate to their shareholders just how excited they are about the companies future prospects ie; by putting their hands in their pockets.

Maybe now you get where i am coming from