You can't always get what you want, but if you try sometimes, you get want you need. Rolling Stones
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Balance, great post as usual. Although I fully believe that scenario is very likely and I think the majority here would also feel that way, what does the market think? Your scenario values EHRE at $6 while the share price is in the low twenties. It would appear from that there is less than a 4% chance of getting that price. The market is very skeptical about this company, there are too many black clouds over the company. But as I always remind myself, if the oil is there, which I am a believer, than the rewards will come. I just hope this scenario develops in the near future and in many many fortnights.
The question every long term investor in EHRE should ask, do the day to day events change whether the oil is there or not? Anyone that believes the oil is still there should realize that with the way oil prices have gone in the past few months, then whatever amount of oil you think is down there is worth more. This is not reflected in the share price because NO ONE KNOWS how much oil is down there YET. If you invested in this company because of their assets, then any delay in recovering those assets does NOT change how much they are worth. In any case those that cannot wait will lose out on the pot of gold (oil) at the end of the rainbow. Those that stay will be the ones who are rewarded. PATIENCE, PATIENCE, PATIENCE.
DeGen
Art, very unlikely there will any public hearings or court case. The most likely scenario is this "case" will be settled out of court with ERHE paying a fine. My guess is the fine will be under ten million. ERHE may not believe they are really guilty of anything, but pay the fine just to get the monkey off their back.
DeGen
Ps, Will be back in a week or so, hoping for this slide to stop and some news from the company.
Shale Oil in Colorado hit the news headlines in the early 1990's and nothing ever became of it.
GAP is a clothing store where according to the commercial, some people "fall into the gap". It appears most shareholders here have already fallen into this gap.
Does it really matter who owns the 40+% that Chrome presently owns? Is it better for SEO to own it directly or for Chrome to hold it? or for another company to own it?
IMO, I would rather have a major oil company own those shares rather than Chrome or SEO. The value of the shares held by the remaining shareholders remains the same. IMO, the share price would soar if it was announced that SINOPEC bought those shares. It would give the stock instant credibility and notriety. Of course the share price would also immediately jump to the sale price of those shares, which is any one's guess, but would hope it would be north of 50 cents.
SBSH bid 231, UBSS ask 240 level II Vol 135,757
Balance, you get my vote for the post of the year for that conservation. As well as poster of the year, hands down. Were you a fly on the wall at the Chevron meetings?
The small pull back after the nice rise is not unexpected, in fact I would think most here actually DID expect this. There was no real news about ERHE, except for the ADDAX article in Forbes. Certainly, ERHE was not the focus in the article and only briefly mentioned. If I read the article I would be much more interested in investing in ADDAX then ERHE. Any DD on ERHE would still indicate the company has big problems with the investigations as well as management replacement, not to even mention the Nigerian connection.
However, I am in full agreement with those who believe the bottom was established in the mid to low twenties and will never return to those levels. In fact, IMO, the share price should soon return to the thirties and NEVER see the twenties again. Any shares purchased in the twenties this week will be well rewarded as the share price finally returns to the thirties with a slow climb upwards until real news is released.
I would hope for some kind of good news soon, or at least by the end of the year. My best guess would be the resolution of one of the govt investigations. The fact that SEO is no longer in charge should be being greatly discussed by ERHE's lawyers and the govt. I just can't stand the waiting, but owning this stock you MUST be patient. PATIENCE PATIENCE PATIENCE.
I am disappointed that the share price remains around 25 cents now that it appears BOFA is no longer at the "ask" dumping many many shares. Weeks ago I thought the low share price was caused by this dumping, but it appears the "market" feels the same way as the price remains in the mid twenties. The main reason for this must be the continued uncertainty about the govt investigations.
Although, as the days pass there appears to be more hope that these investigations will be resolved in our favor no announcement is forthcoming. The govt is never in a hurry as it is no skin off their back and for the investigators its only a job and a pay check. Are our attorneys pressing the govt for a resolution or do are these attorneys milking the case as well. Who knows?
The bottom line is the share will remain low until these investigations are resolved or there is tons of oil discovered. I wonder which will come first.
It is so NICE to "get away" from the daily goings on of EHRE & IHUB for a few weeks! Not that I don't love ERHE or really enjoy IHub, its just a nice relief! To go away when the share price finally gets back into the thirties and only to return to see the mid twenties again really hurt. However, to see a nice PR issued today sure makes me feel the SP will be back to the thirties REAL soon. I guess its just back to the waiting game. Waiting for the govt to get off our back, waiting for new management to be hired, waiting for the drill ships to arrive and best of all waiting for the OIL to be FOUND. It's actually the same since my hiatus, just a matter of waiting and waiting and waiting. Everything it still in place, if only next October (2008) was a week away instead of a year.
DeGen
Very likely at one of the MGM-Mirage properties since I have a lot of juice at those.
I will buy dinner for at least a dozen at the Vegas party when the share price hits $5. If I get the okay from the wife we can also have a barbecue at my place for all (up to 100)
DeGen
I would also agree that unless there is "cumulative" voting for BOD members, there is no chance for our group to "elect" a member of the board.
Only 2 out of 5 of our existing Directors have "oil industry" experience, three have very good experience in other fields which I am sure many posters here would also have:
"Directors and Officers
Howard F. Jeter, Director
Howard F. Jeter has served as a director since April 2005. Ambassador Jeter retired with the rank of Career Minister from the State Department in 2003 after a 27-year career in the Foreign Service. He is the immediate past US Ambassador to Nigeria. He also served as Deputy Assistant Secretary of State for African Affairs, State Department Director for West Africa, President Clinton's Special Envoy for Liberia, and Ambassador to Botswana. Ambassador Jeter was Deputy Chief of Mission and later Charge d'Affaires in Lesotho and Namibia. He also had multi-year assignments in Tanzania and Mozambique. He earned his Bachelor of Arts Degree, with Honors, from Morehouse College and Masters Degrees in International Relations, Comparative Politics, and African Studies from Columbia University and UCLA. He is currently the Executive Vice President of GoodWorks International, an international consulting and business advisory group, Chairman of the Advisory Committee on Africa, US Export - Import Bank and a board member of Africare and Africa Action.
Nicolae Luca, Director
Nicolae Luca has served as a director since February 2001 and has served as interim chief executive officer since July 2006. For over five years Mr. Luca has also served as the Technical Director for the Nigeria-incorporated entity Chrome Oil Services Limited, (a separate and distinct entity from the Bahamas-incorporated Chrome Oil Services Limited which is the Company's majority shareholder). Mr. Luca has a Bachelor of Science in Mechanical Engineering.
Clement Nwizubo, Director
Clement Nwizubo is currently President of Clement E. Nwizubo, CPA, PC, a New-York based firm which he founded in 1987. From 1985 to 1987, Mr. Nwizubo was the Manager of Financial and Accounting Reporting at Primerica Corporation. From 1983 to 1985, he was the Audit Manager of Watson Rice and Company. Between 1980 and 1983 he worked as a senior accountant with Stewart Benjamin and Brown. Mr. Nwizubo is a Certified Public Accountant. He took a BS in Accounting and Business Administration in 1977 from Oneonta State College, NY and an MBA in 1980 from Fordham University. Mr. Nwizubo is a US citizen.
Andrew C. Uzoigwe, Director
Dr. Uzoigwe has served as a director since April 2005. Dr. Uzoigwe started his career with Dow Chemical Company where he held various senior positions in its Walnut Creek Research Center and in its Specialty Chemicals Production Facility in Pittsburgh, California. He joined the Nigerian National Petroleum Corporation (NNPC) in 1981. During his tenure at NNPC, Dr. Uzoigwe held several senior technical and management positions, including Chief Engineer and Project Coordinator (Petrochemicals), Group General Manager (R&D Division), and Managing Director of NNPC’s Refining and Petrochemicals subsidiaries. In 1999 he was appointed the Group Executive Director (Exploration and Production), a position he held until he retired from NNPC in 2002. Dr. Uzoigwe is a Registered Professional Mechanical Engineer and a Registered Professional Chemical Engineer in the State of California. He is also a fellow of the Nigerian Society of Chemical Engineers and a Fellow of the Polymer Institute of Nigeria.
Peter C. Ntephe, Secretary
Peter C. Ntephe has served as secretary of ERHC since February 2001. From 1987 to 1992, Mr. Ntephe worked with Serena David Dokubo and Company, rising to the Head of the Corporate Legal Services Department. From 1992 to 1999, he was a partner in the law firm of NSW Law and oversaw the firm’s provision of company secretarial services to corporate clients. From 1999 to 2001, he was Chief Legislative Aide to the Chairman of the Senate Committee for Judiciary and Legal Matters, National Assembly of Nigeria. Mr. Ntephe has a Bachelors’ and two Masters degrees in law, the second Masters being a specialization in regulatory issues from the University of London. Mr. Ntephe teaches business law as part of adjunct faculty at the American Intercontinental University, London.
Ps: Not to toot my own horn, but as an example, since I would personally NOT want to be on the BOD, I have BS in Chemical Engineering from the University of Rhode Island 1968, a Professional Engineer License from California (active since 1973, as well as a law degree from American College of Law 1976, and have been a Member of the California State Bar since 1977(presently Inactive Status). I am retired and do not to work any more as I am having too much fun in Las Vegas.
I would guess there are others here who would be equally qualified as those presently on the BOD.
Auman, I would check with Tryoty first, he believes NO one here is qualified for the BOD, including those here that are ex CEO's, attorneys, doctors, former company owners, etc.
Although this board probably controls way over 10 million shares, there is no unity.
DeGen
Ps: I think we could get a share count if emailed to a moderator. Or if those who don't care about privacy, just post your share total here. I am at 700,000 shares.
In China? What drilling opportunities are in China? Why would an technical type oil guy be in China? Are there any oil opportunities there (that the Chinese would be willing to sell)?
Would he go to China to discuss ERHR's JDZ oil rights?
Again, Why would Ledbetter be in China? It must have something to do with SINOPEC one of our partners.
Ps: Dadd, I added the Sinopec addition while you were writing your post.
Level II is showing bid 27- ask 27.5 last 27 (volume 122K)
With BofA back in the forefront at the ask (not good news)
Sorry, Walldog, I disagree as indicated in my post. If I had told one of my friends or relatives to listen in on this CC to get a better idea about the company, I do not think they would be buying shares. The "black cloud" of an Nigeria owned/controlled company that might be a scam was not removed during the CC when Peter spoke.
I do not question Peter's credential's, only the fact that someone who did not leave an NIGERIAN IMPRESSION on the listeners would have been better for the company and the shareholders.
I would appreciated others here giving their opinion on this. TIA
DeGen
PS; Chrc, I am not trying to stir up the pot again, only giving my opinion about a VERY important event that occurred (ERHR's first CC) which deserves to be discussed from all sides, not just the positive side.
With the upcoming annual meeting at the end of the year, is it too early to start thinking about the possibility of getting one of more trusted/respected poster here elected to the ERHC Board of Directors. Maybe he/she should be from Texas area for convenience (but travel is paid for anyhow). Should be start the "primaries" in IOWA?
DeGen
Ps: I will proxy my many shares in the company's BOD election, to whoever represents us from this board. I would hope everyone would do the same to insure at least one seat on the BOD (I hope).
Image is Everything
This was EHRC's first cc and those who listened the first impression is very important. This includes what was said, how is was said, who said it and how is was presented.
What was said has be gone over many times here and certainly there were things of merit although not many. CC's by their very nature usually have no earth shattering news, but usually discuss earth shattering news that was put out in a PR prior to the CC. No prior PR prior to this CC, so nothing earth shattering to discuss. The earth shattering PR about SEO issued several days ago, was skirted around and no new tidbits were gleamed. The speaker was tight lipped on that issue as he was with most issues of any important consequence.
How is was said, who said it and how is was presented, will be discussed together. The speaker Peter Ntephe was obliviously from Africa and spoke with a African accent. I believe he is on the BOD, but did not check. His English was difficult to understand, For an AMERICA company's CC this was/is NOT ACCEPTABLE. Yes, IMAGE IS EVERYTHING, and the image he presented to the listeners was not that good. I am not prejudice against Africans, but I sure would have appreciated a speaker who spoke much clearer and more understandable.
To add to this difficulty of understanding Peter, the audio was not that great either. In fact in today's day and age of communications, it was poor and unacceptable. IMAGE IS EVERYTHING and this quality in the broadcast did not leave a good impression, especially since was a FIRST impression.
I would hope at the next CC, there is a better speaker. Maybe Ledbetter if he is not too busy. In fact, what could have been more important for Ledbetter to be doing to miss the CC? Maybe Ledbetter is not the top official/management of ERHC but I would bet anything that his presentation would have been better. I do not know why our "acting" CEO was not available for the cc. I also do not know how well spoken (as in understandable) ERHR's acting CEO is.
Did I say IMAGE WAS EVERYTHING!
DeGen
Ps: Maybe more thoughts later on the content.
Pss: For Troy and Tap, just a rewrite of some old WGMGY stuff! Or as Melvin Ellis would say, ERR, ERR, ERR, ERR.
Psss: I did get to ask two questions at the CC, but got smoke blown up my butt for an answer. (CEO question, SEO question)
just in
who is talking
Amen, Lughead. That is exactly what I was thinking. Who are these "manipulators" anyhow. The share price was as LOW as it is/was going to go. If those manipulators did not buy in the low twenties, then they missed out. No matter how much bad mouthing they do now, they will NEVER get the share price back to the low twenties. Too many conspiracy theories floating around here and not enough conspirators!
DeGen
OT PeterMax, did I hear you say, "backroom poker",
Deal me in!
DeGen
Ps: Spec29, look around at the used boat market, with so many in trouble with house foreclosures, there should be many forced to sell their boats cheap. Cash is king right now. Many bargains out there. Credit it VERY tight as well.
I am more in agreement with Electric thoughts on the price of any buy in - out, then anything else I have seen. I have always believed that even getting twice the current share price would be more likely than a ten to twenty times current share price offer. If it sounds to good to be true, it probably is not true.
Monday is the last trading day before the cc. I am hoping for a big volume day with a nice rise in the price. It would be nice to be back in the low thirties and even nicer to be in the mid thirties. The anticipation of a big announcement remains. But I feel, if there is an announcement (big IF) it will only be about management replacement and NOT about a buy in / buy out. Although it could be both, since new management would be coming from the possible buyers.
But IMO, it is more likely the cc will have NO big announcements about buy in/out or resolution of government investigations. The departure of SEO is still very new and maybe the company was not prepared (as in knowing in advance) for the event and needs a fair amount of time to regroup and find a replacement. I would hate to see the company wallow with no management for any prolonged period of time as that would bring the share price down because of the uncertainty and lack of management.
I am still hoping for a new CEO to be announced.
DeGen
Ps: I still have never sold any of my many shares and have NO immediate plans to sell. Of course, if the share price pops to $5, all bets are off.
Pss: On Tues AM, I have Dr. appt for which I must leave at about 7 am PST. Hopefully, I can catch some of the cc, and maybe be around to ask one of the call in questions.
The most obvious question:
Does the resignation of SEO have anything to do with clearing up any of the investigations? DAH!
Has anybody suspected that the quick run up at the end of the day on Friday was someone buying who had some inside information on something that may be released very soon? After the share price settled back to 25 mid day all of a sudden near the close, it rockets up to 29.5.
I know some believe it was BofA leaving the sell (ask) side and having finished dumping all the many, many shares it was selling. I too believed the share price would start to rise once BofA left the building. But I did not expect the price to rocket up like it did. So hopefully, it is an insider who knows of GOOD news and the share price will continue to rise when the announcement comes.
DeGen
Ps: Yes, only one trading day left before the cc.
Pss: It is not too late to start a NEW list of questions now that SEO has resigned. And yes, I also wondered where the newspaper came up with the headlines that SEO was "forced out"!
Cobra, you wrote, "Could it be that the SEC/DOJ may just turn out to be our friend?! I sense that the end result of the investigation(s) is that our shares are safer and less 'cahoots' are likely."
This makes me think of a song that says "you can't always get what you want, as in did anyone really "want" the investigations by the DOJ,SEC and HLS? But it may have turned out we got what we "needed", as these investigations may have been the impetus for the cleansing the company "needed". As in, "if you try sometime, you might find, YOU GET WHAT YOU NEED.
DeGen
On Wed night after the SEO departure announcement I posted the following. Note the shareprice was about 22 cents when I made the prediction.
"But the biggest question that few have opined about, is how will this (SEO's resigning) effect the share price? I say we open at a gap up @25 cents and close the week in the 30s. But I am ALWAYS overly optimistic.
The price opened at a gap up to around 25 cents on Thursday AM and closed Friday at 29.5 cents. Not quite 30 cents but I did say I was optimistic.
I am also glad I picked up an additional 100K shares when the shareprice was in the mid 20's, although I did not find the absolute bottom, I am VERY happy with these purchases. In early posts I have stated any buys below 30 cents will be richly rewarded.
My predictions on what will happen during the cc remain up in the air, but I did say the cc would be more then just Q3 results. And that certainly has already come true with SEO's resignation.
The MM certainly let the air out fast. From a top today at 29 to 25 in a NY minute! Have all the buyers left? Or have all the flippers started turning tricks?
Edit - 5 minutes later, the fall stops at 25 and goes back up to 26
Touched, 28 now at 27.5
Last night I predicted gap up to 25 and close week at 30 - lookin good so far!
DeGen
Ps: Nice to have a few shares (those I bought recently) in the green. Average cost still in high 60s
Most here have believed that ERHE / SEO have been perfectly clean as far as all of these investigation go. However, with the step-down of SEO, one MUST feel that there may have been some wrong doings going on that the shareholders were unaware of. Who would know about the wrong doings? Who knows what happened between Jefferson or Maureen.
I think SEO must have a good idea of what transpired. And SEO stepped down. I again ask why would he step down? You make the call for yourself. I have posted MY OPINION.
DeGen
Ps: I wonder how much time ERHE will spend "discussing" the Q3 financial results during the cc as promised?
SEO has been a FIXTURE of ERHE for quite some time. Not doubt his stepping down is a MAJOR EVENT. So one must ask why and how this will effect the company/shareprice.
Why did SEO step down? No doubt in my mind it had EVERYTHING to do the investigations. I believe he was forced to step down from pressure by the investigators. So does this mean the investigations are winding down? I would think so, since SEO step-down HAD to be part of the negotiations with the company and now that the step-down has occurred, this should open up the door for the settlements to be finalized. I would guess that an announcement to that affect will be coming very soon, maybe at the cc. I would also guess, that a some sort of fine will have to be paid. Maybe a million or two, but something to pay for the government expenses for the investigation. This should be considered a blessing, since any on going investigations leave a "black cloud" over the company and the share price.
As far as all the deals being bantered about, I believe this is a bit premature. All the investigations and legal problems MUST be cleared up first. So let's wait for those announcements before we start guessing about the buy ins / outs. I do not believe SEO step-down has anything to do with prospective deals that may occur.
But the biggest question that few have opined about, is how will this effect the share price? I say we open at a gap up @25 cents and close the week in the 30s. But I am ALWAYS overly optimistic.
First, I believe what Meridan posted, therefore it blows my Feltang selling its shares out of the water. So much for my conjecture and my ability to figure out what is going on with the selling and the share price drop.
But as far as the MMs and BofA goes, BofA was at a 23 cent bid most of the day, which was either tied for the low ask or very close to low ask most of the day. So the BofA seller is still hanging around for whatever that is worth. I guess someone else has to figure out who that BofA seller is since I have no further guesses now that Feltang is out of the picture.
As far as posting the level two quotes, I suggest anyone that interested in them invest a few bucks and you will find it is well worth it for your future buys and sells. I posted a free link to level two, but it has a 15 minute delay.
DeGen
Ps: I am not trying to create any horn nests here by voicing my opinion on why the selling and share price is dropping. No one is happy about what is going on and there are a lot of sore nerves because of the share price situation. I hope more than anyone that the share price picks up and the present situation does not need to be "explained". I also believe that ANY explanation of the share price drop is NOT going to be well received since it would most likely it will not be praising the company. I also believe this should not be a ra ra club and opposing viewpoints should be at least respected even though the opinions do not have to be "accepted" as fact.
I do not believe that the MM work some kind of conspiracy to bring the price down from the 30s to the 20s. The MMs make their money from the "spread' and in a small penny stock the spread is quite a nice "vig" (2-5% on every sale). Multiply that by 100s of thousands everyday and it is a nice piece of change for just ONE stock. The MMs are like the casinos, they just want the action because they know they will make money from the vig. The more the action, the more they make.
Why would the MMs conspire to bring the price down, they would then become "investors" in the stock. They are not investors, they are MMs. They know the risk of penny stocks and know better than to play games with "their" money.
AMJ23, maybe you should reread my last post where I indicate why I believe (as in conjecture) it is Feltang. No proof, just an educated guess. Who do YOU think is doing all the selling and using BOFA? Very likely only ONE seller. How many shareholders have millions of shares? How many of those that own millions of shares believe NOW is a good time to sell. Please list all the possibilities besides Feltang.
Art, it is all CONJECTURE about the 6 mil shares being dumped by BofA. BofA is the MM that maybe selling the shares that Feltang received in payment (just over 6 mil shares). My belief is that Feltang or the people who make up what ever Feltang is, does not want to continue holding those shares. There holdings appear to be being sold via the MM BofA. This is NOT an institutional holding by BofA. Only a MM handling a customer who hold lots of shares.
Again, this is pure conjecture on my part but was suggested here by someone else before me. I just "accepted" it as a very likely theory on why the share price continues to fall in the face of no news or somewhat good news from the latest events. To me, it makes no sense for the share price to be dropping after the Q3 results. The PRs appear to clear up a lot of things that were hidden in the closet and turn a completely new leaf as far as company communications with shareholders are concerned. I personally felt good about the PRs.
There are other explanations for selling at this low price, like forced selling for personal or economic reasons, but this continued pressure on the share price leads me to believe it must be a BIG dumping and it appears that BofA is almost always the low "ask". In the past BofA was rarely in that position. That's my logic, but I could be wrong. Good night for now, see you in the morning.
DeGen
Drilling Countdown
According to Addax the Aban Abraham drillship is reported to begin drilling as early as August of 2008. If the drilling occurs in the middle of the August, that leaves less than a year to drilling at the most. However, it is not out of the question for the AA to come as early as April. Let's all hope for an April Fools Day arrival which is only 232 days!
Only 5 days trading days to the cc. Still hoping for good news or at least some "new" news.
The price probably will not bottom until BofA sells all of those 6+million shares it has to dump. Once that is over, we should have a fairly nice climb back up. The only question is when will BofA get finished with that.
DeGen
Doug, I do not blame you for being a bad mood today. I am too! My other stock investments have been tumbling for days. My real estate barely holds on, but the future do not look good. I worry every month about the Trust Deeds I hold may have to be foreclosed on. Nothing positive!
But after the ERHE's PR I did expect a little bounce, maybe 2-4 cents. But just a little nudge up, IF that holds.
I guess we all have to wait for the REAL GOOD at the cc (my wishful thinking)
DeGen
Ps: I can not understand why RIG is falling, they make a great deal to combine forces, they are in an industry where their rates are skyrocketing and making money hand over fist. What gives???