ERHC Energy Inc (ERHE)

[Fernando Rica]

Over on Facebook there is a big time ERHE shorter, who disclosed to me that he shorted hundreds and hundreds of millions of ERHC shares, and he also told me WHY he shorted so much ERHC shares, in the first place. His arguments:

* He did not expect that anything will ever change regarding ERHC.
* He says that ERHC has been stuck near zero for over 5 years, without any news.
* He wishes me good luck with my worthless ERHE shares.
* He thinks/thought that ERHC was a non-reporting piece of crap.
* He said: no financials, no filings for a long time.
* He said he never expected ERHC to be still around, with a then pending bankruptcy.
* He hoped a revocation would get him of the hook, regarding his shorted shares...
* He could not believe that the SEC Division stopped trying to get ERHC revoked...
* Etc.

But the most important thing he told me is that he constantly has to convey his negative outlook on ERHC to eventual new ERHC investors.

He also admitted that he was not happy (understatement) when he (too late) found out that there was 400 + pages of litigation online, to be found. An expensive, fierce, fight by Big Oil, over just one ERHC block in the EEZ, that took over two years instead of just the expected 3 months. That did not help him much... he said.

I thanked him for his views, and told him I heard about these arguments earlier... indeed excellent reasons to decide to short the hell out of a stock, but always a huge risk, since unexpected things can happen... as did with ERHC.