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ERG Hit Again
Source:www.cards-worldwide.com, Source date:
Australian smart card company ERG has suffered another blow this week. Melbourne stockbroker JB Were has downgraded its forecast for profits and earnings for ERG by more than a third.
JB Were slashed its forecast for the current financial year by 37 per cent and 2003 earnings by 36 per cent.
ERG’s stocks have been one of the worst performing in the ASX100 this year -finishing at 41c last Friday – way down on February 2000 share price of $4.29. ERG shares fell to a record low of $A0.365 last week after ERG announced the departure of Michael Slater, the group’s Chief Financial Officer. Mr Slater had held the position for five months.
Other analysts have put a “hold” status on the company’s shares. Analysts are calling for ERG’s senior management to take pay cuts in line with the company’s performance.
