ERHC Energy Inc (ERHE)

[DegenerateGambler]

petermantx, I am not stock expert either, nor do I follow (or believe in) charting stocks. But what I believe to be true is that if you want to buy, you buy at ask and if you want to sell you sell at bid. Therefore, the wider the spread between bid and ask, the less trading there is. No one want to buy at 32 and then only be able to sell it for 30. So if the spread is more than a 3%, trading slows to a crawl. In fact, a 3% spread is way too much and you would never have such a spread if the stock was listed on a major exchange. Stocks like Citibank even though they are trading for $2 the spread is about the same as our stock which is trading at 1/7 the price of Citibank. If you look at Apple, trading over 100, the bid/ask is usually about 5 cents apart if not LESS.

So the real key is keeping the bid/ask close enough together to encourage trading. Sometimes the MMs just do NOT want to do that and allow only desperate sellers to sell and over eager buyers to buy. This means very little volume. BWTFDIK