Outstanding bargain?

ERG at current levels is ridiculously cheap, given the enormous potential it possesses if things go its way. It should be noted that this undervaluation is symptomatic of the times however - many fine companies are similarly haplessly enmeshed within the thorny claws of this current severe bear market. A bear market that may easily last for another 2 or 3 years unfortunately.

The number of NASDAQ listed companies that have fallen below the prescribed minimum shareprice level for theoretical retention on the index is greater than ever before, for example. This has forced NASDAQ management to review their policies here, given their recognition of the harshness of the economic times.

What this all means is that companies must act smarter than ever before. If their managements are inefficient, the company will be savaged by the markets, who are demanding higher than ever before standards of competency.

ERG in particular needs to demonstrate its economic potential & long term viability via the acquisition of good contracts. A sound business model alone no longer will cut the ice. It's walking a tightrope - the road to riches is alluringly ahead of it, but one slip on the way could spell problems.

Investors into the company at current levels must be smiling however. With a little luck, in 12 months time its shareprice now conceivably could then be viewed as having been an outstanding bargain.