ERHC Energy Inc (ERHE)

[Strategyone]

Some facts regarding the "E"

When a company get's the "E" added to their symbol, you can still get quotes and trade just as it is without the "E". To illustrate this please go to today's listing of companies that have the "E" that will be removed tomorrow and try it for yourself.

The following link shows expected symbol changes for tomorrow:

http://www.otcbb.com/asp/dailylist_detail.asp?d=05/17/2006&mkt_ctg=OTCBB

I then selected the second company on the list "GDTIE" and went to Yahoo to get a quick delayed quote. Todays quotes are shown.

http://finance.yahoo.com/q?s=GDTIE.OB

As ironic as it may sound, there is a relatively new investment strategy employed by analysts these days (including the RIA I work for) that specifically look for companies that get the "E" due to the changes under Sarbains-Oxley. The basic idea behind the new strategy is that there are many good companies that get an over reaction or market valuation adjustment due to a temporary "delinquent" filing caused by new rules pushed out by the Sarbains-Oxley Act. This in no way is to say all companies that get the "E" should not be scrutinized but the strategy is to find the ones that aren't deserving of the over reaction.

It is my understanding that ERHE should be getting the symbol change to ERHEE starting tomorrow. If ERHE submits their filing by weeks end, the E will be removed Monday or Tuesday of next week.

It is my opinion that ERHE is a fairly simple evaluation considering it has no operations at this point. ERHE should be valued based on it assets and potential future assets (oil from it's rights). Is the delayed filing going to change these assets? If not, then there should be no change in the market value of the entity. If there is a negative change in market valuation and the late filing illustrates neutral to positive news then it is a market over reaction to the E.

Good luck to the traders (I will be holding through this cycle),

Strategyone