I think there is a fair bit of difference between a tech stock and a resource stock.
ERG flew based upon the perceived first mover status and excellent technology. In my view they failed because:
They were entrenched and beholden to buearocrats
Broader technology moved on past them, making the first mover status irrelevant
They burnt through cash without any regard (directly from a guy I work with who was a PM on the San Fran side of things) at a rate of knots
The systems were overengineered and too complex
SCOPE CREEP!!!
CVI on the other hand has very different risks, although they are all real.
There is certainly the slim possibility of the stock becoming effectively worthless as ERGs stock (eg. Angola gets a new President who decides to nationalise all the resource tenaments in the country - as per Saudi Arabia with oil in the 70's).
I take your point however as per the dangers of heady optimism!
No-one should forget that the risks are real. That's why it's current trading at about 15 cents.
Cheers
CVI Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
