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Re: nevERHEsitate post# 171463

Tuesday, 07/21/2009 5:23:50 PM

Tuesday, July 21, 2009 5:23:50 PM

Post# of 361804
http://davisjonesresearch.com/reports/ERHEreport2.php

<Therefore, the returns on microcap investments such as
ERHC Energy can be staggering>

5 THINGS YOU NEED TO KNOW ABOUT
ERHC ENERGY

http://davisjonesresearch.com/reports/ERHE_Davis_Jones_Research.pdf


1) The management team running ERHC Energy
is experienced and capable of growing the company
Taking a company public doesn’t guarantee success.
A successful public company must have a management
team with the experience and expertise to create value for
shareholders. They must know how to establish and execute
an economically viable business plan, build the brand and
company image, organize and motivate employees, and do it
in as timely and cost-efficient a manner as possible.
The management team running ERHC Energy is capable
of this. They are solid and have a history of success. Not only
is the team experienced, but they are driven to grow the company
and create shareholder value.

2) ERHC Energy has a relatively low number of shares outstanding
Companies with a low number of shares outstanding are
advantageous because shareholder value has not been diluted.
Also, companies with low outstanding shares are often
more explosive relative to companies with a large number of
shares in the marketplace.

A low number of shares outstanding means a tighter float
and, consequently, a smaller marketplace for a stock. Since
share prices are determined by supply and demand, a sudden
increase in buying will likely overwhelm the number of sellers
and result in an upward price surge.

3) ERHC Energy has the right promotion
Being the world’s greatest company means nothing if no
one knows about it. A company needs to actively undertake
investor relations and publicity campaigns to spread the word
about their product or service.
Doing this not only brings exposure to the company, but it
will inevitably bring in new investors and add liquidity to the
stock – a very good thing.
An illiquid is stock makes it difficult for investors to
enter/exit positions quickly and invariably results in larger
bid/ask spreads. Large bid/ask spreads translates into money
out of your pocket because you aren’t receiving optimal pricing.

Many microcap stocks suffer from a lack of liquidity. However,
with investor relations and publicity programs in-place,
ERHC Energy is actively working to ensure a liquid environment
for its stock.

4) ERHC Energy has a relatively small market capitalization
If you multiply the price of the stock by the total number of
shares outstanding, you get the company’s market capitalization.
ERHC Energy currently has a market capitalization under
$250 million which falls into category of microcap stocks.
Microcap stocks can be volatile. However, the potential
upside is far greater than that of a larger company. That’s because
it is statistically easier for a small company to double or
triple in size compared to a stock with a large market capitalization.
Therefore, the returns on microcap investments such as
ERHC Energy can be staggering.

5) ERHC Energy is still “under the radar” of Wall Street
A sound strategy for making money in the markets is to
buy a rock-solid company while it is still ‘under the radar” of
Wall Street. By getting in before anyone else knows about the
stock, you position yourself to ride any price appreciation as
other investors discover the company’s potential.
Because ERHC Energy trades on the OTCBB, the stock is
not yet known to the vast majority of Wall Street’s big money
players. As ERHC Energy develops its business and increases
marketing efforts, it could attract a larger following
from Wall Street. And that could send the share price soaring.
COPYRIGHT ©

Thank you,

Davis Jones Research
Customer Service Department
www.davisjonesresearch.com


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