ERHC Energy Inc (ERHE)

[trade2much]

Dane:not to attack, but how do you figure dilution? *Fewer shares divided into the same gross earnings *usually is not construed that way, I am missing some thing. Perhaps I'm unaware or misconstruing what you mean. Dilution is normally associated with *additional offerings* but not RS to my knowledge.jmho

Basically if you had a Share value of $10, and you do a 5 for 1 reverse, the stock then becomes worth $50 the EPS would also increase far as I know based on the same earnings with fewer shares. Then due to the high probablility of a potential listing on a major exchange, and meeting major institutions SP guidlines, the demand for limited shares would cause the price to *increase, *not decrease.

The Sales per share increase as does the earnings and other value fundamentals, *unfortunately if there are loses, yes they will also.

Doesn't have to be negative though I agree it normally is. The reason I think it would be different here is ERHE would be doing it with VERY GOOD ASSETS and A TON OF CASH ON HAND and fantastic proven potential. Also, Cash per share increases interest for buyouts since again you have fewer shares.

It is merely a discussion and likely will never come to pass, but imho we should not, out of hand, perceive it as negative *in this case, without a lot of thought on the pros and cons.

jmho but it is always good to analyze