ERHC Energy Inc (ERHE)

[Strategyone]

condor,

If your doom and gloom scenario was as real as you suggest then PN and SO would not be buying so many shares. They are now easily purchasing more shares than their NET take home income. If the "end" were near, they would be doing the exact opposite. They would not be spending one more dime of their own money for shares.


Now to answer one of your questions..

What will be the price of ERHE shares, after the R/S? Will it be substantially less than it is now?

Normally, I would say the price would get more depressed going through a R/S. The main difference in this situation is the FEAR GAP that was created due to the ill advised CD financing this past year. The stock was diluted by 4X but the market cap has been reduced WAY WAY beyond the value of the assets. Even if they doubled the number of shares outstanding post R/S, the current 3 to 4 million dollar market cap will be pushed more towards reality as the drill bit gets closer and closer. The market cap will likely shoot to around $50 million when it is obvious that ERHE will survive through the first drilling in Kenya. Any good news regarding partnership or a solid funding plan OTHER than CD's and the share price will reflect this and the current FEAR GAP that exists will start to go away.