Balance Builder - wow, where do I start...
Let's begin with : thanks for your response and I always appreciate your posts and the way you think things out, even when I don't agree with all parts of it.
Also let me state that I think the possibility of the dots connecting the way you are promoting it now is a definite possibility I will not rule out. In fact, I hope there is some kind of buyout very soon in a range from $3 - $10 dollars (or in the GAP as you commonly phrase it). I would likely vote my shares to accept this and take the money and move on. It wouldn’t fulfill my most desired outcome but it would be completely acceptable and I would move on to other stocks.
However, I do not share your convinced belief that the writing is on the wall for ONLY this outcome. I feel you are looking at many events with a pre-determined outcome (buyout) and may fail to recognize other possibilities.
Let me give you an example or two: ERHE not hiring “Enercominc”. You seemed to feel that Enercominc would fit perfectly into ERHE’s strategy and that the only reason they haven’t hired them is either management is incompetent or they are being bought out real soon and have no need for them. I may have read your posts incorrectly but this is how I interpret what you are suggesting regarding Enercominc.
Here is another possibility. ERHE has no proven oil YET! They have been in discussions with Enercominc and maybe they would like to or even plan on hiring them once they make their first commercial oil discovery. Maybe Enercominc is very expensive. Why hire a new CEO before you need them…..same possibility with Enercominc. I like the idea of ERHE hiring Enercominc but I give management credit for not jumping the gun on promoting ERHE before it’s time. Just my humble opinion.
Second example:
"There are certainly exciting times ahead but please be cautious about putting undue reliance on rumors and speculation in the coming months as these important processes are undertaken."
You make a comment that “real” promoters don’t focus on risks….. I agree. That is one possibility.
Another view as I see it is that ERHE is an OTC:BB stock which has a majority of the “float” held by OTC:BB shareholder/gamblers. Many of these shareholders have been holding for a looonnnng time (myself included – 9 years). ERHE is about to enter into the “discovery” phase of a baby oil company (or holdings company) and MANY, MANY of these shareholders are going to be hanging on or clamoring for ANY rumor regarding oil discovery or dry hole. In fact, I would bet that many shareholders who have been watching the daily stock price every day for umpty ump years will get all giddy every time the stock price moves up 3 cents on 100,000 share buy (am I touching a nerve of anyone reading here…lol). TONS of these very investors will be so anxious that they will likely be calling IR or anyone else they have contact information for (BM, JDZ etc.) whenever they hear the slightest rumor (one way or the other) and the share price or volume starts to move more than average. They will be saying “can you confirm…..yada yada yada. Why don’t you put out a PR… yada yada yada”.
I think Dan did a very good job of openly disclosing that in the real world of drilling exploratory wells, that it takes time to drill, analyze, and plan the future strategy and there are still risks involved (yes we all know this). Not only that but the company can NOT respond either publically or privately to any rumor that comes out during drilling. This time will be like no other time in the company history for potential price manipulation/trading on rumors, hopes and fears of these pent up OTC:BB investor/gamblers. I think Dan was proactively putting out this warning (even though it was stating the obvious for many) at a perfect time (the early drilling quiet stage).
Yes, the stock price reflected negatively to this PR and some people may have reacted emotionally on the “risk” warnings. There are all kinds of investors/traders/gamblers/manipulators/pumpers/bashers involved here. The volume was still very low in the grand scheme of things (IMHO) and the stock held it’s own today again on low volume.
Note:
Balance Builder, please don’t read this as an attack on your way of thinking or saying that you are wrong. I very much enjoy your posts and part of me hopes that you are correct. You are very “invested” in this company and I respect your opinion greatly. I also enjoy reading most of Mark and Oilphant’s post but I see a huge difference in these two posters. Mark is very open and honest in the communication he shares with the board along with backing up his communication with the source of this information (most of the time it is the JDZ or JMC which anyone can call to confirm if they chose to do so). Most of Marks news/rumors are not complete with enough details to be considered insider information (IMHO) to get him in trouble so I think he is safe in posting the way he does. Oilphant, on the other hand, post wild statements that can be interpreted many different ways and is frequently (if not always) proven incorrect. I hold a slight opinion that he/she may still have a contact that releases actual insider information to him/her and he uses that information for his own agenda (be it legal or not). I think Oilphant may post false information on purpose many times to protect himself in the future if some of the information is actually true insider information that he/she is trading on. Keep in mind, it is entirely possible that Oilphant is sitting in Nigeria with access to someone who communicates with SEO or someone else related to the company and would never fear insider trading rules as they are out of the USA’s jurisdiction. Again, this is a possibility. I have no idea what the truth is with Oilphant. I do know that ERHE never hit 7 cents and those big trades never came through when he posted them and I don’t understand the reasons behind these kinds of posts.
I do, however, look forward to hearing any kind of drilling rumors. I just won’t call the company to confirm….lol
BRING ON THE RUMORS.
