ERHC Energy Inc (ERHE)

[ssc]

Maybe an example will be easier to understand.

start with 50,000 shares cost basis .40 dollars invested $20,000
buy 8 1/2 times that at .0004 = 425,000 shares for $170
This results in 475,000 shares with cost basis of .0425

Price to just breakeven would have to go up 1000% from today's price. By the time 6 billion shares reached that dilution would bring the share price close to .0001 and would have to increase by 4000% just to breakeven. The more likely scenario of a reverse split and subsequent price retracement would make the numbers much worse. On the surface the kindergarten version of "just buy 8.5 times as many shares" sounds feasible, but even the middle school version shows ERHC's market cap would have to increase by 4000% or more to simply breakeven. People can make their own decisions on this strategy, but they should base it on facts.