I'm with you Zaaro.ERG's technology may prove superior to their...

I'm with you Zaaro.

ERG's technology may prove superior to their competitors despite the delays - delays are very common to smartcard transportation projects due to the many technological challenges.

Cubic Transportation, ERG's main competitor had US$240M revenue last financial year. They made a consolidated company profit of approximately $40M including their defence subsidiary and have a market capitalisation of approximately US$670M.

Cubic have been in litigation with several customers over the years for not delivering to contract. The latest litigation is with a major US customer and it's still not resolved. The project has been withdrawn.

Cubic have fought hard against ERG, obviously because they regard ERG as their main threat.

IF ERG's technology in Sydney and San Francisco proves superior to Cubic's then ERG's position as a dominant global player will be strenghthened substantially around the world.

Right now trials take place in Perth, Melbourne and Sydney. Efforts have been made by governments to get companies to implement technologies that are interoperable. IF ERG succed to run their technology along side Cubic's old system in Sydney and San Francisco (BART) until Tcard and Translink are fully rolled out then ERG will have the answer to the interoperability sought by the US & Australian governments.

Time will tell, probably much sooner than some may think.

In 2005, 50% of ERG's shares was held by the top 20 shareholders.

In 2006, 61% of ERG's shares was held by the top 20 shareholders.

I've made a prediction some months ago on this site that in the not too distant future more than 70% of ERG's shares will be owned by the 20 major shareholders. We'll find out the current position in August when ERG report next.

Good luck!