ERHC Energy Inc (ERHE)

[Krombacher]

Tech stocks took quite a hit and are likely to continue to fall since that sector looks really frothy.

Conversely, some of the most undervalued securities out there are in the energy sector. Gas prices have come down somewhat, but that won't last and will rise again when the Fed realizes that their end to printing won't work, and they will resort to the only thing they know how to do, which is to print money, right or wrong.

So we'll have some inflation and that will hit oil prices.

Now, granted, none of these macroeconomic factors make much of an iota of difference in the penny stock world...I feel like those investors out there reading this should seriously consider going out of tech stocks...and maybe throw some of their speculative money on ERHE.

Unfortunately, to be invested in ERHE, you have to spend quite a few years understanding the business model and the various nuances. The newbie will not understand how it is that we acquire properties even with so little cash. The newbie does not understand that ERHE's competitive advantage is its ability to schmooze with Africa's who's who at oil conferences. And the newbie doesn't understand the strategic significance of what is taking place at our properties other than Kenya. But most of all, the newbie doesn't understand how many of the various factors that make ERHE a diversified play may come to closure as early as this year.

So will that guy currently invested in XYZ tech company consider taking profits in that stock and rotating over to ERHE?

I think they should...but it remains to be seen if they do.

Krombacher