ERHC Energy Inc (ERHE)

[Krombacher]

I think it's a smart move to buy these shares while they are still cheap to offset any dilution that may occur down the road.

I think about it in this way. If I have, let's say to pick a round number, 1 million shares, and the company dilutes by something ridiculous, like say 50%...then I have to buy 500,000 shares in order to immunize myself against that dilution.

That will cost me $5,000 to do at the current share price of $.01.

In other words, I am paying a $5,000 insurance premium that protects me against dilution. That's a cheap insurance premium to pay!!

If the share price rises to 4 cents as those pumpers had achieved some days ago...then that insurance premium to protect against dilution would then cost me $20,000.

People are going to wish they bought dilution protection insurance when prices are so cheap.

just my opinion,

Krombacher