Sorry to say, I completed my first sell of ERHE stock since the STP coop attempt many, many years ago (pre PSC signing).
Now the good news for those who held firmly to their stock here, the price went up fairly quickly after I made that last sale. Maybe it will turn out to be a sign of good things to come…lol.
My reasons for selling mostly boils down to not being comfortable with what I read in the PR today. Yes, there are a thousand ways to spin this in the positive light and another thousand ways to spin the dooms day scenario around this. I don't feel it is either extreme. I do, however, feel that this is a change in what the company has been doing. They have not diluted shares since they paid off SEO’s loan many years ago. They had plenty of cash (with $20 million in the bank) to wait out the disclosure of drilling results UNLESS they change strategies. Regardless of the "why's" and the "to whom" for today's company stock sale, the fact is that they sold stock for cash and at what I consider to be a very low price. To me, this means they do NOT expect to be in a different position any time soon to raise capital at a higher price per share. I think the timing of this has to do with the 6 month extension of Phase I and therefore, we all have another wait of stagnant or drifting share price to endure (although, I hope for the opposite).
I still maintain a substantial position here that I don’t plan on selling soon. On the other hand, I am not planning on purchasing back in with the proceeds of today’s transaction. I simply changed my holdings to a more comfortable level to wait this out further.
I firmly believe the value of ERHE stock will one day be determined more specifically by the prospective assets that they have rights to. At this point, I feel it will be more than a “fortnight” away and I have no idea how many fortnights it may be.
Good luck to all
