Replies to post #307489 on ERHC Energy Inc (ERHE)

[globaloil]

Value of shares depends on your cost basis...

If someone just purchased 3,000,000 shares for $4500 with a cost basis of $0.0015, then with the current SP, for all intents and purposes, one's investment is worth about $6000.

If your cost basis is greater than the current share price, there are two ways to solve the problem:

1. Purchase cheaper shares, when available, to bring down your cost basis.

2. Sell all of your shares at the market price today and get your money now.

Following the second option above is an especially good idea if you believe your "off the cliff to the jagged rocks below" scenario. It is irrational to hold onto shares you believe will forever go down in value to oblivion. On the other hand, if you think the stock MIGHT recover, you can always purchase your shares back when ERHE hits $0.0005 or lower, as you predict.

When the SP comes close to the point that ones investment is for all intents and purposes is worth zero there are very good reasons why and they aren't positive. Primarily its a CEO who has made very bad choices at every turn while bleeding the company coffers dry and he seems intent on making more all the way off the cliff to the jagged rocks below !

[Strategyone]

That certainly is one way of looking at it and I feel sorry for those who only see the jagged rocks below as the likely outcome.

Do keep in mind that a balanced perspective can also help with ones optimism. I can readily identify multiple mistakes management has made over the years and it is certainly easier to say I would have made different decisions when I have 20/20 hindsight and also not having full details of behind the scenes information or constraints but one should also recognize some good decisions made like diversifying assets into onshore Chad and Kenya; getting major oil companies to partner with them in the JDZ; getting CEPSA to partner with them in Kenya; etc.

No oil was discovered in the first 5 attempts in the JDZ blocks, now the company exists for another opportunity that is right around the corner with more options in the wings. Since the share price is almost zero for all intents and purposes, it doesn't take a large $ amount to risk for a substantial return with multiple chances of success that this same CEO helped set up. That is why some people have the ability to see the jagged rocks below but also see another pathway to the white sandy beaches just down the road.

Good luck