ERHC Energy Inc (ERHE)

[nordicroots]

What you just described is a change in conditions. Typically if such changes in operating or financial conditions result in different perceptions of the people that make up the market, their appetite for acquiring shares may change as well. The first question you asked alluded to what happens after the share price at 0.0001 is perceived as too high; it could reach the point where no one sees value and bidding simply stops. After a period of time the company could be delisted. So at about that point in time it becomes more a game that resembles something of a cross between both hot potato and musical chairs: when the music stops you don't necessarily want to find a chair because it doesn't do you a lot of good to keep playing, it resembles hot potato in the sense that if you are left holding the hot potato (sometimes referred to as the "bag holder") you may not recover your capital. In the hot potato analogy you could find that you can't really do anything with your investment in shares except perhaps take physical receipt of the share certificates from your broker and use them to wallpaper a wall or something. On the other hand, if the company's prospects change for the positive and people like its growth prospects going forward (e.g. drilling results in finding commercial quantities of oil/gas) they might just bid accordingly and you could see demand and price increase. And as owners of penny stocks can tell you there is often a lot of volatility in the shares of these tiny companies.

Right now we are seeing continual price declines that come with large volume of shares being sold indicating the sellers have control of the market as there is simply not sufficient demand from the buyers to absorb the shares in a way that would keep share price from sagging.

This is a somewhat unusual situation as the selling demand appears to mostly be coming from the holders of the convertible debentures that are converting to stock and selling the stock to recoup the money they loaned the company.