Encouraging news for ERG

PQ has reported that Proton World with EMV Plus was awarded the honour of having the best banking / finance smart card application at the prestigious European Sesame Awards-Cartes 2002 last week.

Because Proton is a component of ERG, this nicely timed recommendation no doubt will help its bottom line over the next few months by way of additional contracts, in my view.

Anyone who claims ERG is on its last legs perhaps should reconsider their position on the company. I reckon it'll prove many a pessimistic pundit wrong in this regard.

ERG's upcoming meeting on Nov 28 in Perth should prove most interesting to investors. Peter Fogarty's words no doubt will be listened to most carefully by everyone. Shareholders present at the meeting will need to quiz him closely re ERG's cashburn rate in relation to its reserves. At this stage of the game, this is the hot chestnut no one's yet been able to get an accurate handle on. Yet it's a chestnut that needs to be firmly grasped, like it or not. We're entitled to know whether ERG has the definite capability to survive its current short term difficulties or not.

Interestingly, Cubic's holding appeal re the Sydney decision expires within the next seven days - my guess is they'll not proceed to a full appeal but simply let this holding one lapse. In other words, I believe Sydney will soon be announced as another feather in ERG's cap.

Good luck to all.