ERHC Energy Inc (ERHE)

[nordicroots]

Maybe it has nothing whatsoever to do with any concerns over whether it is toxic debt? How about something as simple as indiscriminate selling of all small cap oil stocks just because of the space they occupy in the industry?

Take a look at this and pay attention to the description of the hedge fund moves to shake out the weak hands:

http://seekingalpha.com/article/2544605-really-scared-money-which-oversold-oil-stock-bargains-to-buy-now

As he says "Obviously, there are moral issues that make this type of practice wrong, but it would be naive to think it doesn't happen all the time. This is why "mom and pop" retail investors often lose the game to Wall Street "pros." How many times have retail investors been shaken out of a stock at or near the lows, only to see the stock then experience a sharp rebound?

I believe that numerous small cap oil stocks have recently experienced the type of short attack by hedge funds and high frequency traders that I have outlined above. It now appears that many of these stocks have overshot to the downside due to forced margin call selling and retail shorts jumping into the "game"."