ERHC Energy Inc (ERHE)

[Krombacher]

I wonder.

When the Dow dropped, I said maybe some shorts had long positions elsewhere and maybe there would be a margin call on erhc causing them to cover.

But then I retracted that statement because a short seller is probably unlikely to be long elsewhere unless he's doing a paired trade and hedging. More likely he's short elsewhere.

But now I wonder whether Tuesday's huge and insane gain in the markets followed by yesterday's milder gain did cause some short sellers to get margin calls in other short positions and maybe now they really do have to cover with erhc.

And they would have until Friday or possibly Monday to do so. Unless the markets drop between now and then.

I'm sure it doesn't help that erhc also climbed to $.0004 ... and I'm sure there's a desperate need by short sellers to paint that back down by end of day. Or end of day Friday.

The above theory would explain a few things for sure.

In any event, I hope no one sells and the short seller's broker forces the buy order for the cover.

Would be interesting.

Krombacher