ERHC Energy Inc (ERHE)

[jhermit]

So we got $45M now what?

It seems we are all worried about OBO-1, OBO-2 etc because that will increase our assets and validate the value of the company. Not much discussion has happened around the $45M we have received and what they plan to do with it.

One thing I learned from the dot com mess is that all the assets and cash in the world do not amount to a hill of beans if management does not turn them into shareholder value. I saw many companies piss off more than $45M a quarter without increasing shareholder value, and most of those companies do not exist now.

So I would like to hear from the CEO a good vision and plan for increasing shareholder value since that is OUR cash. It seems like he has 3 options:

- Give it back to shareholders - either buy back shares or declare a special dividend. Not very interesting.

- Re-invest in the company - Cannot do much here since we really have nothing tangible to reinvest in except bid on other (EEZ?) blocks. I sure dont want to see more expensive offices and cars

- Expand into new areas. This is what I would like to see and I believe they have indicated that they want to become producers. This business seems very capital intensive, so I would like to know how the plan to do that. Merge? Aquire? start from scratch?

Keep your eyes on the $45M. It will tell us a lot about the future of this company. I really don't care if the CFO is competent enough to fill out a 10Q. I do care if he is competent enough to create shareholder value. That is what will get this stock past the $3 area when people get behind a vision they can embrace because it has a plan. I am long, so I have placed my bet.

"A vision without a plan is a dream"
"Hope is not an effective investment strategy"
Good night to all.