ERHC Energy Inc (ERHE)

[TOB]

That is exactly the point of the Value Proposition.

If this sp can go to several dollars then what is the issue with waiting for more substantial potential validation and jumping in at .50 and gaining a safer multibagger? Waiting for lower risk to still obtain great gains seems like the better route.

ERHE is not a "safer multibagger" at a higher shareprice. ERHE is actually higher risk when it has good drilling prospects and a higher share price valuation, not lower risk. Without finding oil, we saw exactly what happened to the share price when ERHE had good seismic studies, was near drilling and at a share price of .50 - .90 cents.

Those pre-drill highs were the highest risk bet, not the lowest risk. True for all exploration stage oil companies with limited drilling assets. That bet could have won big, and still could, but there was about a 10% chance of a commercial oil discovery in the JDZ. (Actually a zero % chance as there was no oil in the targets) Yet the bet from .10 to .90 was a repeat winner. Several 5 and 10 baggers, on an almost annual basis buying around this time of year.

The lower risk bet is the exploration run-up, from .10 to .50 or .90 is a 500% to 900% gain, and no oil discovery is needed. Many past examples, again, nearly annually. Alternatively, an increase from .50 to $2.5 likely requires a commercial oil discovery. (Although it can also come from a buy-out or multiple simultaneous explorations)

ERHE has run-up several times, 500% and 900% above the current share price based upon just the exploration stage. The mistake was thinking that it was reduced risk at .50 to .90 cents because the excitement and the targets were defined. Rather it was the run-up to the .90 cents from .10 that was the better, and lower risk bet.

There is no guarantee that this will occur again, I agree, and no guarantee that this is the lowest share price. Rather the share price is in what has historically been the Buy Zone during the period that 12 out of 12 years has had the annual low.

No guarantee of a repeat, but that is a pretty compelling pattern and record.

Only two of those years requires a smaller profit, or a wait, or double down if the targets are large. I plan to do an example spreadsheet on this.




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