Certainly the company has some decent prospects with an excellent potential.
However, the company faces several major problems at the moment and has presented no information to the shareholders as to how they are going to get out of their current predicament, much less a long term plan for the company.
Some of the problems I see at the moment are;
1) Money- this is the biggie, they are close to running out of cash and have been in survival mode for a long time now. Last CR failed miserably so where are they going to get the money to move forward?
2) Market- The market was not accepting of their last offering and the market temperature is even worse now. Not an ERO specific problem as many are having an EXTREMELY difficult time raising money these days but it is their problem as much as anyone's. No matter what they are going to have to deal with this issue very soon.
3) Direction- the company has presented no plan to the shareholders as to the future of the company. The market right now has a difficult time swallowing a great plan and a great company, they do not even want to taste a company with no plan. If these guys have one they are not telling us about it. Who knows perhaps their big plan is to just hang out and hope the market will turn around and go back to the good old days throwing good money after bad. I hope they come up with something better than this because I think the market is going to take years to get back to the "good old days" from what I can see.
4) Management- Mr. Kennedy, while the man certainly has a seemingly impressive resume, you have to question how much time he spends on the company since he is the Chairman of what, like 7 different companies. I have run three companies at one time and from my personal experience I doubt that anyone has the time, even if you have the skills and talent, to run 7 effectively. Just my opinion of course. In addition they seem to be grinding trough CEO's. We have not heard one peep from Mr. Lines since his reappointment.
So, it comes to this, you have company in a bad position, led by the bunch that brought us here, who are at best distracted at the moment, having spent a lot of money and having little to show for it, who have no plan to get out of the mess and no money so they are out of time. So, who cares what tenements they have, the company is a very long way from being able to do any prospecting and develop something of value. This is in my opinion, why the stock continues to suffer.
Best to all, and please DYOR LFJG
ERO Price at posting:
1.4¢ Sentiment: Sell Disclosure: Held
