ERHC Energy Inc (ERHE)

[Krombacher]

It would be great if 10 million shares turned out to all be the convertible debt holders because that's another $100k of the debt converted and does not have to be paid back by ERHC. Eventually, all of the debt will likely be converted and sold. But again, because the amounts are so small, it's no biggie. $100k is really nothing.

Unfortunately, most likely much of the selling today is probably due to panicky investors responding to fear.

And short selling by convertible debt holders is absolutely nonsense as I've already shown.

Anyone who makes the statement: "short sellers affect markets", is correct, but we're talking about short selling by a specific group, the bondholders and they are not doing it...because it makes no sense for them to do so. Why take on a risky short position when you can book an instant profit by converting and selling risk free?

Also, tax loss selling tapers and ends toward the end of December....but we're not yet at the end of December yet.

Furthermore, with over a 100% gain in the last few days...there's going to be quite a bit of profit taking too.

And finally, I get the sense that even though ERHC has not ruled out more convertible debt, their engagement with Deloitte for other forms of funding says to me they won't be doing any more of it beyond what they've already done, in my opinion.

Krombacher