ERHC Energy Inc (ERHE)

[howardd3]

Any thoughts on why ERHE has 722mm shares? I have thought for a while that a good step towards looking like a more legitimate investment and less like a Nigerian scam would be to do a reverse split i.e. 1 for 10.

The cons would be a higher net loss per share until revenue starts, and generally reverse splits aren't treated favorably. But on the pro side, with a market cap of 400mm and great prospects for the furture, it is kind of dumb to have pps of .5. THe fact that it is a penny stock helps to confirm fears that this is in fact a Nigerian scam.

Honestly, who comes to market like this in the first place? This is an example of really poor underwriting.

On another note we were down to day, but on comparatively low volume. Looks like the only ones buying or selling are small time day traders.