Keycorp looking strong, page-14

re: ERG looking strong bullboard121 (ID#: 407073) RE: Quadruple quntuple bottoms are strong

The significance of the Sydney contract---is not just the immediate contractual gain from that single thing-flowing from that are so many other things-for instance to give but one example---NRMA do not want to deal with ERG unless ERG has Sydney-so therefore if ERG were not to get Sydney------ERG would not have NRMA--for NRMA want a card that is multi application and interoperaeable for paynments transit the whole lot-which they can sell to their members----flowing from Syney as well-is to get all of Australia---and to have one card that can do everything-hop on a train a ferry also use the same card when travelling to book into an NRMA motel---to go the pictures-to buy an icecream (hopefully to accrue CAT loyalty points--LOL)--so that is what it is all about. Australia is one part-then we have the whole world---where it is already a fait accomplai in places such as Hong Kong and now Singapore.
CAT
Based on three years research-I believe they have too. (whether they like it or not)
>AFR Article patent. 11/2/2002.
>----------------------------------------------
>The smartcard operations of ERG, including its
>yet-to-be built Sydney ticketing system and its
>ANZ Bank and American Express systems, may be put
>in jeopardy by the granting of a broad
>smartcard system patent to rival player Catuity.
>----------------------------------------------
>Catuity, a loyalty software systems provider listed on
>Nasdaq and the Australian Stock Exchange, is expected
>to announce this morning that the US Patent and
>Trademark Office has granted it an expansive
>smartcard system
>patent that will last 17 years.
>-----------------------------------------------
>It is understood the patent will cover systems for
>manipulating data on several devices - including
>smartcards - used in multiple terminals to conduct
>programs such as electronic payments, ticketing and
>loyalty
>programs.
>-----------------------------------------------
>Catuity chief executive Mr Mike Howe said the patent
>may mean other operators would find their
>smartcard and loyalty systems trespassed on
>Catuity's territory.
>-----------------------------------------------
>"A number of existing and proposed smartcard system
>implementations could fall within the scope of the
>Catuity patent claim," he said.
>-----------------------------------------------
>"Catuity has two other patents pending in the
>US which would broaden its patent protection in the
>multiprogram and smartcard areas."
>----------------------------------------------
>It is understood similar patents will now be
>granted to Catuity in markets
>including Australia, New Zealand, Europe, Canada,
>Brazil and Japan.
>----------------------------------------------
>The company's chairman, Mr David MacSmith, said
>although Catuity had no plans to pursue its rivals for
>patent infringement, "having a patent with this
>scope will cause questions to be asked".
>-----------------------------------------------
>"We've got no plans to take aggressive action
>and get into a patent fight -we have 17 years to do
>that. When we've got all the ammunition and all the
>facts, we'll evaluate," Mr MacSmith said.
>-----------------------------------------------
>However, receiving licensing fees from other smartcard
>operators using technology covered by its patent
>could become a new and significant revenue stream
>for Catuity, he said.
>-----------------------------------------------
>Mr MacSmith said Catuity, whose technology is used by
>Visa and Target in America, had been able to
>secure such a broad patent because it applied in
>1995, when smartcard systems were still in their
>infancy.
>-----------------------------------------------
>Should Catuity begin requesting royalties from
>companies deemed to infringe its patent, the group
>would be making others take the medicine French
>smartcard rival Welcome Real Time forced it to swallow
>last year.
>-----------------------------------------------
>Last July, a Melbourne court ruled that Catuity had
>infringed WRT's patent.
>-----------------------------------------------
>The ruling forced Catuity to ditch its Sydney-based
>Transcard smartcard project.
>-----------------------------------------------
>Mr MacSmith said Catuity had appealed and the
>matter would be heard on February 25.
>-----------------------------------------------
>"We believe we are outside the WRT patent.
>They're not going to get any significant amount
>of money from us," he said.
>-----------------------------------------------
>A spokesman for American Express said it believed
>Catuity's patent would have no impact on its Amex
>Blue card, which uses a loyalty and smartcard
>system to provide discounts to card holders at 14
>merchants.
>-----------------------------------------------
>ERG also said it believed it would not be in
>breach of the patent.
>-----------------------------------------------
>"Our business is not to develop loyalty systems - we
>buy them. We don't see Catuity as a competitor but
>as a supplier," an ERG spokesman said.
>-----------------------------------------------

>
>1303 Notice of Allowance Frequently, the
>invention as originally described and claimed was of
>much greater scope than that defined in the claims
>as allowed. Some or much of the subject matter
>disclosed may be entirely outside the bounds of the
>claims accepted by the applicant. In such case, the
>examiner should require the applicant to modify the
>brief summary of the invention and restrict the
>descriptive matter so as to be in harmony with the
>claims.
>
>However valuable for reference pur-poses the examiner
>may consider the matter which is extraneous to the
>claimed invention, patents should be confined in their
>disclosures to the respective inventions patented (see
>37 CFR 1.71 and 1.73). Ofcourse, enough background
>should be included to make the invention clearly
>understandable.
All the Stockdoctor sick list means is that the entity goes on a type of watch--they then follow the company and look for signs of improvement--well ERG have done 20 million dollars worth of cost savings---the accounts cannot be analysed in the traditional way--for the Stockdoctor formula is not set up for ERG---as everything has been written down to zero----which is a pretty abnormal non traditional thing to do.
I repeat the ANZ joint venture--has 23 million in cash in it--the Stockdoctor system wouldn't even take this into account.
Rene Rivkin reckons zero----he has been wrong on a number of occasions--ask Baby Boomer over at Ozestock-he went to school with him---Baby Boomer has ERG.
A 50c target is achievable--further out next year a dollar or two
On BB's I don't give a stuff---just head games--this will go with a bit of time to 50c----and by 2003---it will be sitting up near 2 dollars.-----Don't give a stuff about Rene Rivkin-sincerely I don't---didn't spend 3 years looking for news articles on the net on smartcards (I mean all CAT---but it relates to ERG) for nuttin---stuff the bullboard.
With the research into smartcard sector---might get the retreat points out by 1 or 2c---on a company with 800 million dollars worth of revenue---growing to 4 billion over the next few years--you know mate might get it a cent or two out--sometimes exactly---no ones perfect.
The danger was if they lose Sydney (they won't anyway) that they would have to write down the ITS consortium----but the thing is everything has already been written down to zero anyway----so therefore----all bad news has been factored in----anything that comes out from this point has to be positive--with the single exception of maybe the court case with EDI Downer--if they were to lose that--this wouldf be the only single thing---when it next reports profits---the entity only has to show an improvement to state that it is getting there---for it to be re rated.
To an associate of Rene Rivkin (who shall remain nameless) I made the following statement at around 23c at Hotcopper a few months ago.
I am telling the local garage owner Eddie that ERG you could buy a couple of thousand and stick them in the draw for the grandkids.
(which I did) the reply was that a 50% stop loss was unacceptable---what you outlay 400 dollars and you want a stop loss on it?--far out---now with more substantial sums of money------understand that the degree of risk is higher-the psychology behind it is the same though and depends what your net worth is in relation to your overall risk profile and that is different for all people.