Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
emdyal, you are right... on popular and widely held companies these stock splits are non-events, but on a thinly held pink sheet that trades less than the value of a used car each day, what we are seeing is normal.
A decade ago ERHC Energy had the attention of the markets. Sadly, that's gone. Fairly recently ERHC's CEO, Peter Ntephe said that he would "excite the market" when the time was right.
According to everything Peter Ntephe has said drilling in Kenya will commence in the next 90 DAYS, yet the only thing we hear from the company is [insert crickets chirping sound]
Mr. Peter Ntephe, CEO of ERHC Energy, isn't the time right *now* to excite the market? Or did you just say that because in reality you don't know what to do?
Fair enough. The $12 shares bought before the convertible debt fiasco are worth 16 cents.
Is that better? I mean REALLY?
A year and a half ago the share price was (split adjusted) $12.00 and we were two years from drilling. Now drilling is 2 months away and those $12.00 shares are at 16 cents.
Yay Peter Ntephe, CEO of ERHC Energy! Champion CEO! Wooo-hooo! You da man!
Yay Sylvan Odobulu, CFO of ERHC Energy! Chief architect of the convertible debt destruction of the company. Wooo-hooo!
Long timers... let's put where we are into perspective...
Think back a decade or so. What was the highest price you paid for ERHE shares? Embarrassingly, I'll confess that I own shares that I paid $0.989 for. What was your highest purchase?
Now adjust that price for the recent split by multiplying by 100.
I have shares that I paid $98.90 for that are currently worth $0.16... yes, SIXTEEN CENTS!
That's the power of complete and total incompetence trying to run a public company. Peter Ntephe tried to look wise by calling convertible debt financing "quick and attractive". I can agree with him that it was "quick", as in the easiest temporary fix requiring the least amount of effort on his part. But "attractive"? The only people benefitting from the convertible debt cluster-phuck are those that bought the ruins... quite notably the CEO and CFO that orchestrated the annihilation of the market cap as they chased after shares like they were on a K-mart blue light special.
Maybe it's just me, but getting up each day and looking into the mirror only to see that looking back at me would be depressing.
I'm right there with you bmu... I still have some $0.989 shares reminding me not to chase... ever... again.
My split adjusted price for those shares is $98.90. And my split adjusted current price is $0.16.
Golly gee thanks Mr. Ntephe! Convertible debt was "quick and attractive". Those were your words Peter Ntephe.
You are a moron and ill-equipped to be a CEO. A true embarrassment, to be perfectly clear.
Very doubtful. Contracts for this drill were put into place and funded last year. The current environment *might* impact the alluded to 2nd well, but I'll bet funding has been set aside for that as well.
I'm looking forward to this drill, but I am really, REALLY curious about the "stuff" we don't know about. The CEO and CFO dropped a quarter million of their own money into ERHE over the last year and a half.
Why they did should be bubbling to the surface soon.
It will look nothing like that, IMO. The reason is "that" would start a lawsuit nightmare that would devour both ERHC and NGAR.
The CEO and CFO of a company cannot set up a shell of their own and strip assets from the company they are leading. Fiduciary Duty... hello? They would sit in jail for something that stupid.
It's more likely that NGAR is where PN and SO plan to utilize their profit from ERHC's sale. It's legal and makes more sense.
I would have ZERO problem with that salary if he (they) were performing well. They aren't.
As far as I'm concerned if they had an ounce of integrity they would refund their salaries from the time they issued the first convertible note. The last year and a half has shown they aren't nearly competent enough for that level of compensation.
If Offor wants to keep them on his payroll, that's his business... he can let them clean his house and do his yard work.
Adjusting their salaries appropriately, of course.
What would happen to dealerships that pre-ordered $40,000 cars that wouldn't be available for 2-3 years, when the demand was expected to be fully recovered?
That's apples to apples.
Nobody said ignore the truth...
The truth could be that NGAR was set up by Odobulu and Ntephe as a place to invest their massive windfall from the sale of ERHC Energy and continue growing it... we don't know.
The only true truth is that we don't know what the future is for any of the mentioned entities, not ERHC, NGAR, Ntephe, nor Odobulu.
Is that completely pathetic communication? Absolutely.
Is it possible that a tiny minnow swimming in shark infested waters during a major feeding season needs to hide every piece of information that it legally can hide just to survive? Absolutely.
Do I like any of it? Absolutely not. But it is what it is.
If the long hinted at "strategic investor" shows up and we aren't raped beyond recognition (not that we haven't been severely disfigured aleady), everyone that ever bought this stock could still realize a nice gain with a decent discovery.
Given the ride we've been on, that wouldn't be a horrible outcome.
I think you're right. Let's hope it's the partner and not the shareholder. The shareholder hasn't shown much support for a very, very long time.
It looks like it's time to change your signature block on I-hub.
LOL!
Amen.
I share that quiet optimism, although the dark cloud of NGAR and it's unknown intentions could leave us looking at a successful drill in Kenya, but holding worthless shares of ERHC Energy after being stripped of it's assets.
I don't *think* they could get away with that, and I would certainly take every legal action I could to prevent it, but the FACT is that NGAR exists and it has significant overlap with ERHC management and facilities. Why are *we*, the shareholders of ERHC Energy, paying the lease in Houston to house the headquarters of NGAR?
WE should have been told what this plan is before they set up camp in OUR office space.
It's unnerving at best.
Terrified would be a better word to use.
Everyone is on edge right now. Over the coming days and weeks we'll see which way this is headed... hopefully sooner rather than later.
From their most recent PR: "To take advantage of merger and acquisition interest"
Intriguing.
For the last few days ALL of the brokers have been at various stages of incorporating the reverse split. E*TRADE showed my accounts with pre-split share counts and post split pricing... as fun as that was I knew it was a work in progress and not real.
Can we quit bickering about who is right or wrong when we are all saying the same thing? The numbers aren't all accurate yet. Brokers are updating as quickly as they can. Hopefully everything will be worked out before the open tomorrow.
In the mean time, can we stop fighting for no reason except to fight?
So now something stated on an anonymous message board is FACT?
Unbelievable.
A sincere wish for health and happiness to all...
wealth is just frosting, live for the cake.
Or maybe as the reverse split happens someone steps in with a large wallet (aka Strategic Investor) and there is sudden action in Kenya, Chad, the EEZ, and yes, a resurgence of the JDZ.
That would be fun!
Your argument is sound...
"To anyone who asks "why would they repeat the toxic debt debacle?", the simple answer might continue to be that they have no other choice."
However the CEO and CFO have bought a significant ammout of shares over this last year. That leads me to believe they *they* don't think massive dilution is in the cards.
Time will tell.
Issuing shares to keep the ship afloat is not an option. We saw that last year. That is why they sold one of the Sao Tomean blocks, IMO.
When I look at the numbers, this is what I see:
In July 2014 they started issuing convertible debt.
- the shares outstanding were roughly 750M
- the price was 10 cents
- the value of the company was $75M
Fast forward a year to June 2015
- the shares outstanding were just shy of 3B
- the share price was as low as 0.0003
- the value of the company was $900,000
The raised less than $2M for the effort.
So where are we now?
- post split shares will be just shy of 30M
- if the price stays at this level post split it will be 10 cents
- the market cap will be $3M
When I consider these points, I conclude that the dilution path is a non-starter. Convertible debt destroyed 99% of the value of the company and raised 2.6% of the market cap when the dilution started.
A repeat performance would raise $78,000 and leave the market cap at $33,000. I don't see that as a viable option. Then I consider that the CEO and CFO have been buying 10's of millions of shares for a reason. I think that reason is dilution is NOT the future path.
IMO, there will be ONE more dilutive event, and that will be to accommodate the "strategic investor" they have mentioned repeatedly. If that investor wants control we are looking at another 30M shares out, but for how much of an investment? Everyone has to decide that for themselves. IMO, the market cap is significantly depressed by fear of continued dilution. Absent dilution, where should the market cap be? If was $75M before the dilution started and with drilling nowhere in sight. We are 3-4 months from drilling and Ntephe has hinted that it could begin earlier because everything is going so well. Is $100M as they spud unreasonable? I don't think so, not with a significant cash infusion. Now back to the "strategic investor". What do you offer for a 51% stake in a company that could be worth $100M dollars in the near future with a chance for huge upside from there?
Everyone needs to figure that out with their own assumptions in the formula. I just know I look forward to finding out!
Go read his last encounter with them. If you can't find it, it's because he has covered his tracks.
ERHE may be the biggest stock manipulation fraud in U.S. history.
Note: "May be".
"shareholder meeting in a few days that will reveal our plan going forward"
Anyone holding shares is praying that is what happens. This can be very positive for us, or very catastrophic.
What bothers me the most is that Ntephe doesn't care either way. He and Odobulu show how much they care about shareholders over the last 18 months. It hasn't been pretty.
Absolutely classic!
Just an observation...
There is a phrase in the academic world, usually spoken by students at odds with their professors...
"Those that can, do. Those that can't, teach."
It appears that there are an awful lot of "teachers" on this board.
In 6 months or less we will all have clarity.
To end as I started, "just an observation".
Oh-oh, tryoty is in trouble...
My wife just found out what I've spent on market purchases over the last 6 months. She cut me off until she gets to spend as much on what SHE wants. Damn.
That's a pretty big clue, IMO.
"So if you want the plan to be carried out, it is best to support the RS."
Reworded to make it more logical... "If they want support for the RS, it's mandatory that they disclose the plan."
Can *anyone* really be so stupid, after the Ntephe/Odobulu orchestrated *RAPE* of our holdings, to support them without knowing the plan?
Cheese and Rice people, WAKE UP!
Mathematically impossible.
"Now the coming r/s has the potential to generate the same type of losses even from this level if the toxic financing continues"
Not gonna happen.
The universal rule of math disproves what you say. Think first, and then do the math.
Working 2nd jobs to fund that insurance?
You got me. Do you feel better?
Facts like a reverse split doesn't matter unless there is dilution after the split.
Darn those pesky facts.
Don't "Quote" me on things I didn't say. I can't say on the first, but I never said that second. Knowing your accuracy, I probably didn't say the first either.
I'm glad you were able to take advantage of the decimation inflicted on all shareholders, many couldn't. When you look at what happened the past 15 months, you can see how far out of whack the share price is.
They had 750M share out. They diluted to 3B, that's an increase of 4X.
Yet the share price went from 13 cents to .0003... at that point it was 1/433 of 13 cents.
4X dilution. Share price divided by 433. Can you say fire sale?
*THAT* is why Ntephe and Odobulu started loading. It wasn't/isn't because they have inside info we don't... they *know* they aren't closing the doors... and we do too, via their commitment to buying so many shares.
They bought because the share price is stupid cheap... sadly because of their choices, but it is what it is.
What I can't decide is are they willing to roll the dice on Kenya and hold, or is the company going to be sold prior to drilling like Addax was. I just don't know. Walking from the STP-EEZ may be a **HUGE** mistake, but holding through the Kenya drill and missing could mean the end of the company before the STP-EEZ gets drilled.
A bird in hand...
My gut says ERHC Energy will be sold within the next 6 months. My heart flip-flops on how it feels about that. Some days it agrees, other days it doesn't. I'm just sooo tired of this journey, so tired.
Do the math...
A find of 60M barrels, with ERHC's share at 35%, and valued at $20 per barrel (after all, there will be a pipeline running through their block) would value the stock at $14 post split if there is no follow-on dilution.
60M * 35% = 21M barrels
21M * $20 = $420M market cap
$420M / 30M post split shares = $14
In reality the stock will run well beyond that number on the speculation that many of the other Kenyan prospects hold oil as well.
Another way to look at it is Addax was sold for $10B with 450M barrels of proven. If ERHC can find one third of that (150M barrels, their share), the company would be worth $3B. 30M post split shares would be worth $100 each.
The question is how much dilution we will face post split. If they can keep it to a minimum, which their buying suggests is the plan, then those that bought dilution insurance will make out nicely... there's that word again, IF.
Absolutely false. The RS changes nothing. Dilution AFTER the split is the boogieman under the bed. If they dilute, we hurt. If they don't then it's all good.
It isn't possible.
If you are going to attack, at least get it right...
Ntephe described the convertibles as, "quick and attractive".
LOL!