ERHC Energy Inc (ERHE)

[TOB]

In my analysis, ERHE as deeply undervalued at 10 cents and with great potential. At decadal low after the first, big hope fell flat. It has a history of several times trading ~800 % than the current share price, and always on hope, never on proven oil.

This is the point of maximum pessimism, which is either the ideal buying point, or trying to catch a falling knife with the cut being valued at 10 cents. (The famous haircut)

The FAQ confirms that several similar run-up catalysts are quite possible, and indeed being actively pursued. It also confirms that an end game vastly higher than an ~800% – 1,000% run-up is likely several years out. It also confirms the risk is also, 10 cents.

That is an excellent risk to reward ratio, but certainly not risk free.

So to me, ERHE looks like a great bet at 10 cents. I’m willing to keep my money at risk. Should my outlook change, I’ll cash out at whatever market price ERHE is at should that occur.

What I will be very wary of, is if the mood changes to the polar opposite, one of great optimism and hope. That will be a clue to consider taking some profits.