ERHC Energy Inc (ERHE)

[Ellington]

first, the obvious: dilution would result in a reduction in price, unless the bigger pie (bigger because of the deal that resulted in dilution) was such that the individual pieces seemed likely (over time) to become bigger than would have been possible without the deal.

second, the important: if the dilution reduces Offor's dominance and makes ERHE more corporate, with multiple parties vying for control, then the risk of one-man control (or one-man-and-his-henchman control) would make the stock MORE desirable.

the fear of being burned by Offor and friends is what keeps this stock as cheap as it is.

meridian, what do you think the future holds in terms of control and legal protection for investors?