ERHC Energy Inc (ERHE)

[vineseeker2]

tryoty, I think the are two main reasons the stock price is being kept under $1 when it should be in the $1-2.50 range. First is to keep it off the radar, at $.64 most institutional investors will not give it a thought. Somebody posted that the "myth" that they will not invest in stocks under $1.00 is just that. I have seen it in writing. Most funds define what they will invest in, I have seen several who say they will invest in "investment grade" securities and investment grade securities were defined as have a market value of at least X per share. I have never seen one that says "we invest in stocks listed in the over the counter market" I have seen "we invest in stocks listed in the major exchanges"
Second, if the stock price is allowed to rise it will take much more capital to control it, at $3.00 it would take five times as much as at .60, if "news" of our discovery hits they might find it impossiable to control the price. Other speculators might jump in and they would not be able to control the trading. just IMHO, if they let go they may loose control & not be able to regain it, they have to hold it where they can & have.