Seriously, is this guy really thinking he makes sense?
If you were referring to me, thank you. But I'd shy away from the $12 or higher price target if ERHC is lucky enough to find oil with this well. Anything over $1 - $2 is ignoring the balance sheet, dilution and dirty way this game is played imo. In the finding oil scenario, ERHC will be long gone if an offer anywhere over a dollar appeared, particularly with the positions of PN and SO.
Let' help him. Let's say $2,- and 40 million shares. So the company is worth max (as in: MAX) 80 million dollars.
Now let's say they find the absolute minimum amount of commercial oil. You don't have to make any calculations to realize that 80 million dollars for 30% of a commercial find is a bit ... eh .... well ... eh.... !
And why according to that guy? Because of the current balance sheet... eh... and dilution!
Say what!?!
Ok, you just got your hands on a massive amount of money in the form of oil... which instantly changes your balance sheet and need for more dilution....
and yet he claims ERHC will be sold for just $2,- at best no matter what the real value is.
Why do I even bother addressing this?
I said it before, we need to all stop reacting, but I know, it is so tempting to prove somebody wrong so easily...
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.