High tech ticketing concern ERG announced an interim net loss of $124.5m, on revenues of $120.9m. Now we might not be experts in the ticketing game but when expenses are twice as much as revenues it's safe to assume things aren't going very well. And that's why the stock has fallen 40% since issue 120/Feb 03 (Avoid - $1.35). One of its subsidiaries announced a contract with the NSW Government to supply smart card ticketing systems for the Greater Sydney commuter network. The deal is a positive but isn't enough to distract investors from the current performance. There may be some blue sky in this company but the downside risk is too great in our opinion. AVOID.