2016 Guidance Affirmed, page-15

Really I am beginning to get confused are you having a laugh?

1. That is what is unique about ERM - In a no growth market you can only use other factors to grow - Price , added services ,and customer relationship. ERM has by far the best relationship with its customers and has an annual survey that proves that. Hence the other players are now resorting to price. They have huge SME and retail customer bases to defend that margin.
2. More unique is that they are probably the first to see energy as not just something you sell but to see themselves as partnering with clients to manage energy as a resource they need. You will find that this will be a logical move in my opinion.
3. They could and will see a logical bottom to the price argument as it affects all and as long as they are profitable at the lower margins they dont get cleared out.
4. Why are you obsessed with them having to be a growth story. In a very mature stable market there are still smaller more responsive companies that grow. I still see ERM as growth story but also love the idea of having a market in the USA that makes us less vulnerable here.
5. I think part of their failing at the moment comes from previous managements more expansive approach - I never understood the gas exploration - the real gas they were exploring was not near the QLD plant the WA plant has a very long term supply agreement already in place.
6. My view stick to the knitting but start providing total energy plans ...

If I thought that this was the value in the company I would sell - I think its worth up to its NAV around $1.51 but if they get USA right I think it could well be worth the $2.50 plus