Saville has got huge loss from his direct investment on ERG. In...

Saville has got huge loss from his direct investment on ERG. In the investment point of views, he has to refuse putting the good money after bad one.

The reason is not how much he could get if ERG could get all of its money back from the big projects but if most of big projects fail, he should not hit himself down. It is basic requirement to a value investor.

In hindsight, all of the investors around the ERG have made bad decisions.
1. Good investors once they find they make some bad decisions, try their best to limit the loss and then the risks.
2. Bad investors buy one after another to average the buying costs with the hopes only.
3. However something seemly could not be controlled by anyone.

Saville wants to get the money back. He knows if ERG could turn its course he could get some money back but he also could not be even 75% sure.
1. To him, restructure is the best and least risky way to fight with the market trend and the bloody government.
2. Whatever the result about the restructure, he does his job very well after his wrong decision to buy in ERG is the problems of the human nature.
2.1> He refused to sell on the fire and he collected the money when all of small shareholders cheers at about $0.35
2.2> He plan to get full control on ERG with least cost and risks
2.3> He know what the results if ERG could get all of money it has paid out for its big projects.
2.4> He needs the small shareholders and keeps ERG works as the entity when it worked on Sydney projects.
3. I don't think the small shareholders could work efficiently and effectively as Saville works.
3.1> Who is the decision makers for the small shareholders?
3.2> Who is the daily organizers to get NO bigger than YES?
3.3> The small shareholders are a group of people with different market views and then they work as a group of send.
4. Theoretically Saville should find a win-win situation but the reality is he could not think too much about the small ones.
4.1> Their loss and damages are the collateral effects of the ERG crash.
4.2> It is not a time for party when small shareholders would happy to take their pennies away.
4.3> It is a crisis when the dollars from the small shareholders would lose and everyone would make hard decisions.
4.4> It is the time no results which could make everyone happy.

I am happy I am outside this fighting, which would not make any new money, new chance, but a risk structure shifting and no one could predict what would be the best.

In the market, everyone wants to get the best but most of people would get the worst. It is true to everyone including the big boys, such as Saville.

It is wrong to take the so-beautiful $200million in your concern. The problems around ERG are still the risks not opportunities. The critical question is how much do you want to lose if you prefer to go with the ERG.

IF ERG price bigger than $0.002 and I bought in, I thought I would take too much risks in this financial tsunami. Don't forget this tsunami has become a negative driving forces of the economies. If economy is worse, ERG should have some more headaches later.