Replies to post #307634 on ERHC Energy Inc (ERHE)

[march2016]

I keep getting confused as to how a CEO of a company spends 10s of millions of company dollars, makes no revenue, gets expenses reimbursed and still gets companies and shareholders to invest in his company.

First, lets agree, the CEO does not work for the shareholders, they work for the company owners and or directors. Therefore, we as shareholders cannot replace him even if we wanted to. And since he has not been replaced by the BOD, they must be at least satisfied with the current direction of the company.

Second, while it appears that you may posses the skills needed to run a company such as this, you probably don't speak the African language as fluently as he, therefore you would probably never get the opportunity to speak to the Kenyan government about opportunities in their country.

Knowledge is power, contacts provide access, and access provides opportunity.
These companies that continue to do business with ERHC understand this. $30 million is peanuts to a billion dollar company, if that $30 million provides a seat at the table. And guess what, if you're not at the table you don't get to eat.

[BuffaloTrader]

The best example of how the macro environment is squeezing "most (small exploration) companies" is what is happening with Afren. Just a couple years ago it was golden, but it is now on the brink:

Afren’s fate in the hands of creditors
http://www.thesundaytimes.co.uk/sto/business/Industry/article1585457.ece

To ignore the macro environment is to ignore reality. If ERHE can survive until drilling in March, that will be pretty miraculous.

Disclosure: I am not currently invested in ERHE, but I remain a big believer in the huge economic growth potential in Africa and I like to check in here every week or so.