Ee, I actually consider this a very high risk stock but am comfortable enough with my due diligence to think I am taking a calculated risk.
Imo, many people don't want to spend the time it takes to understand this company. There are plenty of other investments out there that require alot less due diligence on the part of the shareholder. For example, I've had to learn about the oil industry, about Nigeria, about the JDZ, about China's relationship to Nigeria, FCPA rules and ramifications, legal info re: the search warrant, etc. To me it's been very interesting and informative. Not very lucrative, however, in terms of relationship to the time I've spent doing research. Which is, after all, the main goal here.
And, just to be clear, I'm not saying there is very little risk. I'm saying after all I've read, these are the conclusions I've come to thus far. There could be a case out there where a companies' rights were stripped by the US govt, and I just haven't come across it yet.
So, maybe others know I'm off my rocker and that the US can easily put ERHC out of business. Maybe that's why they are staying away - I really don't know.
I think what has you confused when you say "or what?" is people's risk tolerance. I am willing to take this risk, but have no friends who are willing to. They think I'm crazy to be invested in a Nigerian Oil stock with 3 employees and a Nigerian Chief as the major stock holder, who by the way, has also just had their offices raided for potential FCPA violations. Put that way it doesn't seem like a very attractive investment and I believe this is all most see.
Those are my thoughts, I hope it's a little helpful.
