ERHC Energy Inc (ERHE)

[Krombacher]

Taipf down almost 15% and ERHC yesterday was up 11%.

It appears those investors who recognize that ERHC has a second chance in Chad if Kenya is a bust also realize that ERHC is in much better shape than Taipan is. Taipan only has Kenya as of this writing.

That second chance in Chad offers ERHC some downside protection, since a bust in Kenya will simply be supplanted by hope in Chad.

Of course, having a big blob in Kenya and possibly two or more prospective areas to drill, given the size of the blob, enhances ERHC's chances in Kenya too.

Some will say Taipan has more money...yeah...but meh.

Hopefully history will prove that the ERHC investors who saw through it all and didn't divvy their capital between the two companies to be super duper geniuses with a cherry on top.

After all, why diversify into two companies when you get diversification in one? With one company, but which has a set of diversified assets, you are putting your investment strength and fortifying a potential winner.

Invest in ERHC because investing in ERHC will mean easier fund raises for ERHC at higher share prices for future exploration...and isn't that what investment is supposed to be about? To fortify that company which has the greatest promise...capital allocation people.

Of course, I am not suggesting putting in your entire retirement nest egg. It is always prudent to also have some ETF of indexes of stocks and bonds in your holdings.

Krombacher