positive sides

1, Today's monthly reporting is not positive, however if the accumulated account receiveable will be transfered to VIX, and if the amount is around 30 million, that's not really a bad news. That means ERG can really hold 50% of the new ERG, and New ERG should have no debt.

2, The above is possible because
"Stockholm, Gothenburg, Lazio, and Seattle and completed
development for the next phase of the San Francisco project which at year end was pending final customer approval. The Group expects all of these projects will be ready or near ready for public launch by the end of 2008;"


3, Duncan may eventually buy out the other stockholders.
If this happen, I believe his offer would be far higher than 2 cents, after all, he already invested more than 150 million on ERG, it's easy for him to give 20 million offer for the rest shares, that equal 4 cens per share.So current SP is too low.

the following abstract revealed the possibility.

Abstracted from The Australian Financial Review
(4 month ago )

Troubled Australian ticketing smart card developer ERG has received an additional investment of $A15m from entrepreneur Duncan Saville. The company had suffered a major setback when the New South Wales Government said it wanted to claim $A95m from the provider over the long-delayed Tcard project for Sydney's public transport system. Stock in ERG, which may also launch a counter-suit worth $A250m, remains in a trading halt. Saville and related entities had already put $A95m into ERG, and as a main creditor he has declared an open-ended moratorium on interest payments. He may eventually buy out the other stockholders