Replies to post #298844 on ERHC Energy Inc (ERHE)

[Krombacher]

Bankruptcy would worry me if there were a going concern clause.

There wasn't.

Last post for me for the day...

Krombacher

[nordicroots]

I understand your point and concerns here. But I am perhaps more concerned about watching this share price take the lonely walk down the path it is currently headed and then watch to see someone deftly step in and offer to buy the entire thing out, lock, stock and barrel, for a huge discount to what the share price and perceived market value was even as recently as last July, and that is not even thinking of speaking about what it was selling at in August 2009, or even as far back as July of 1989. This market has been really brutal to a number of small companies. For those riding this thing down, it is sort of expected that there should also be a right to ride it back up, but that doesn't always happen and sometimes the shareholder gets the shaft. In some instances this happens in both the very literal and figurative sense. For example, I was watching this little mining exploration company up on the Iron Range of Minnesota called Duluth Metals. Things really seemed to be going well there for that ambitious bunch of miners, they had completed a drilling program identified a huge deposit with considerable commodity value worth developing, developed mine plans and moved ahead on permitting. At about this point they had just snuggled up to get cozy with a Chilean miner named Antofagasta that had sufficiently deep pockets and appeared to be the perfect partner for them to move forward with on the project. Things were going well and it seemed like the future was very bright indeed, but then things got a little squirrely and Duluth shareholders found themselves on the outside looking in. The shareholders stood there watching in total amazement as their company got gobbled up by their new partner. What happened was that the shareholders got left at the altar in a manner of speaking - the share price got crushed and when the buy out was announced it certainly appeared as though the acquirer felt they were being more than generous to the Duluth Metals shareholders as the offer was ratified - after all it was for a higher price than where the current market had suddenly dropped to; but these were indeed suddenly ultra cheap shares... A lot of people had a lot of heartburn and empty wallets left in the wake of that incident after it all was said and done.

Here is a link to one of the announcements - note the mention of convertible debentures... http://www.twin-metals.com/antofagasta-investment-company-limited-completes-acquisition-of-duluth/

Here is what that stockchart looked like - see any similarities to ERHE? http://finance.yahoo.com/echarts?s=DM.TO+Interactive

Here is a link to a post with an article that recaps how that one played out: http://www.stockhouse.com/companies/bullboard/t.dm/duluth-metals-ltd?postid=23386236

Not a pretty picture is it? Easy to get burned in a market like this. Two very basic things drive the markets - fear and greed.

[Strategyone]

Midtieroil,

That is about the most ridiculous post you have come up with yet. It amazes me to the lengths you will go just to find a way of looking at anything in a negative light. There is plenty to be upset with regarding ERHE. They are not perfect and the current stock price sucks but you are reaching on this one.

Let me give you a different perspective. First, as I mentioned before, if Chrome/Offor wanted more control over ERHE or try to take advantage of the minority shareholders, they would simply pour a lot more cash in now with the same deal the other debt holders got. They would get way more shares that way and it would all be legal and quick.

Second, if they went into bankruptcy I can almost guarantee you that there are clauses in the Kenya deal that turns the property over to CEPSA (since they are the operator) if EHRE is unable to pay their share when it hits. Bankruptcy would likely trigger many unwanted clauses that probably extend beyond just the Kenya property.

Third, there was no “going concern” in the most recent reported financials which likely buys more than a years’ worth of time by any reasonable analysis.

Bankruptcy would lose all credibility for ERHE to do any business with foreign governments in the future so they would be flushing any future worth out of Chad, EEZ and JDZ away without any value.

There is way too much flawed logic in your argument.

Try thinking happy thoughts for a change.