ERHC Energy Inc (ERHE)

[PieEconomics]

This is Deja Vu for penny stock investors:

I purchased over 2 million shares at $0.0045 on Friday, and they were a little too easy to buy. So I don't think the price was brought down to enable any specific parties to buy. I now have almost 3 million shares at an average price of $.0091 per share, and this price free fall does make me nervous:

Myth #1: The stock is so close to zero that it can't drop much further.

Myth #2: If I keep averaging down I'll eventually break even.

Myth #3: Success for the company means the same for management, prospective shareholders, short term shareholders, and long term shareholders.

Myth #4: What management honestly intends to do is the same as what they actually end up doing. (I'm a little less nervous with a company like McEwen Mining which is also way down. The president owns 25% of the company and takes no salary or stock options, so I don't have to guess whether his honest intent will match with what he ends up doing.)