SP RIsing, page-15

Hi Onyx and the rest.

This share is one of those that I struggle to own and yet struggle to sell.

My issues are: The accounting standards make the financial statements almost indecipherable - They face huge markdowns when the trade price for electricity drops - which it regularly does because there is a declining demand. Yet no recognition is in place for the contracts they have at fixed prices. So every time they get a new large contract and lock in the cost in fact very often they end up recording an accounting loss.

Thus when you look at their results they bounce all over the place hence the underlying results - Many brokers and analysts wont make that leap unless they have something easy to understand.

So when I have asked ,about 3 in total now, why they dont look at ERM they say its in the too hard basket. too hard to work out value and too hard to sell to clients as they are negative electricity and in many ways energy and this is right in there.

So really I think this is held by retail clients , a few Sophs and even fewer institutions.

It bucks the trend and should be above $3.00 in my opinion but I cannot see how it will get there and then they go offshore to add complexity.

Bad news ?- I am not sure there is any , but the retail investor is spooked in my opinion. The Oil , Gas and mining are on the floor and then the banks retreat so really with a bit of fear mixed in it all gets a bit scary especially in something like ERM as it hasn't really got a support structure many here are overweight already , as its such a great payer and has grown its base each year.

So I think it has retreated just because fear factor has risen - In the past year its only been higher in May and early June I think so loss selling I dont think so. I think its just fear at the moment.