ERHC Energy Inc (ERHE)

[BuffaloTrader]

Let's compare apples to apples and I hope someone will explain to me why the haters are patting themselves on the back for HDY's sale while calling for the ouster of ERHE's mngt. The deals are remarkably similar, imo.

HDY agreed to a price of $2, which is 43% lower than the stock's close three weeks before on October 14th. ERHE did its deal for $0.22, which is about 43% below the stock's close three weeks before on September 13th. If you go back further, BOTH STOCKS were trading below the price they got. ERHE was at $0.21 on July 13th. HDY was at $1.98 as recently as Sept 27th.

ERHE did a tiny deal, adding less than 2% more shares. They've said to expect more and are probably on hold waiting for the stock to recover, imo. HDY is adding about 15% more shares. An equivalent deal for ERHE would be 108 million shares added.

No warrants in the HDY deal. The warrants in the ERHE deal have been underwater.

My point is that the people who sing the praises of HDY should admit the deals are very similar to the deal struck last month by ERHE - the same deal they thought proved the intention of management to sink ERHE. You can't have it both ways. I think HDY's deal shows that ERHE's terms were pretty standard.

All imo.