Is ERHE Another AMEP?
I'm not familiar with any of the particulars of ERHE, so I can offer no useful comments on the security.
I've learned that it's quite easy to get involved with too many stocks, and keeping track of the developments of all of them can divert appropriate efforts to the study of my top investment contenders.
I would recommend that others look into ERHE and see if it meets with their personal goals and criteria. I've restrained myself to just a handful of promising stocks in the last few years, having formerly gotten involved in a multitude of stocks that proved unsuccessful. It’s easy to be emotionally taken by the promises of speculative stocks. I found that when I was chasing after six to ten stocks I was making very little from the entire effort.
Consequently, I discovered that I had to thoroughly research every stock I thought I would be interested in – long before I purchased it. I realized also that the vast majority of stocks, especially the OCTBB’s, the penny stocks, were worthless, having only a story but no real future. One can get really caught up in all of this, and in the end, lose a lot of time and money. With a bit of luck, one might come out a bit ahead by April 15th, but the results won’t be spectacular. Been there, done that.
I’ve learned to carefully weigh the known values of a stock before purchasing it. Don’t waste time, money, or energy chasing a dozen bulletin board stocks with great stories. In the end, that’s a no-win game. Instead, keep track of, say, five stocks you’ve decided have promise. Then, as Greeneyedhawk has so expertly done, start compiling all the diverse information you can on a company, good and bad. That’s probably what you are trying to do with ERHE, and I commend you.
Then, before you buy a single share, make certain, from multiple sources, that among other things, the company has:
1) Significant, profit-making assets. AMEP has prime drilling rights to 7000 acres of the finest natural gas reserves in America.
2) Competent, experienced management. AMEP’s Charles Bitters is a shrewd, knowledgeable local oil man who knows the landscape, the regulations, the technology, and everything else about getting hydrocarbons profitably out of the Texas strata.
3) Lack of debt. Young or small companies with big debt loads have giant huddles to leap to become authentically profitable. AMEP’s debts are small and inconsequential.
4) A ready market for its goods or services. The prices on the gas pump or your gas heating bill will authenticate AMEP’s markets.
5) A reasonable share price and outstanding share count. Buying AMEP shares at less than a dime, or even a quarter, is about as good as it can get. AMEP will be a strong buy up to a dollar, and probably well beyond that in years to come. I marvel at newsletters and advertisements that proclaim “astounding 20 and 30% gains possible....” In the two stocks I sold to get my 2.6 million shares of AMEP I had a 300% gain with one, and a 1000% gain with the other. I’m averaged into AMEP at about 3.7 cents. I don’t plan to sell a share until it hits a buck sometime in 2006 or 2007. Am I looking for 20 or 30% annual gains? Not any more.
But the companies that hold the promises of AMEP, and perhaps this ERHE (for others to discern), are very few and far between. You’ve got to be ready to commit resources to them when discovered and found reliable. I learned that lesson by overplaying PRST, Presstek, for ten years. Back in 1995, it had technology that was going to revolutionize the printing world. It had everything except numbers 4 and 5. I tied up thousands of dollars waiting for next quarter’s eventual corporate sales increases. They always came, but at a slow, incremental pace. Don’t get me wrong, Presstek is a very fine company, and it’s price will continue to elevate in the years to come. But it will never compare to AMEP. Now, I know where my money should be.
And that’s a final thought. Conventional investment advice always warns against having too many eggs in one basket. You are to be invested in a diversity of sectors and investment vehicles. And that’s good advice. Anyone investing the majority of his investment dollars in OCTBB stocks is a fool.
But the money we use on AMEP and similar small-cap stocks should be discretionary funds earned after we’ve paid off the house, car, insurance, tax, and other debts associated with modern living. But after that, my point is this. Put your funds to work in only the two, three, or four stocks that are really paying off. Then, and that’s what I’ve done to get my 2.6 million shares of AMEP, use the proceeds of your lesser winners (for me a 300% gain and a 1000% gain) to get in on the a major train before it leaves the station.
AMEP’s locomotives are starting to rev. When the first drill shaft breaks the Texas soil in a week or so, the cars will start to leave the station. Investors who belatedly notice the increased speed of the train as it leaves town will have to rush to the next freight yard to get loading tickets there, and the prices will be much, much higher. Those of us who’ve done our homework and bought freight tickets while the train was still in the yard, some before a locomotive (the drilling rig) was even purchased, are now along for what will probably be the ride of our lives – until another such opportunity is discovered in the next decade. Then – if we’ve done our homework – we’ll be able buy a whole line of cars, not just a few tons of freight in one car.
Such opportunities are rare. All of us wish we would have purchased a few thousand shares of a small company called Microsoft back in the early eighties. I recall seeing it at a dollar fifty, but I passed.
This is America, where the entire world comes to create technologies, products, and services that will grow gigantically. AMEP is the first of these I’ve had the opportunity to buy into early on. There will be others. ERHE may be one of them. I hope so. Keep us appraised.
My best to all.
