Replies to post #7426 on Addax Petroleum (fka AXC)

[Strategyone]

tryoty,

You are spot on with this post.

Regardless of what the fear gap creator's say, no lenders are going to lend new money to ERHE based on where the market cap is now and seeing the results of ERHE's cd debt last year that maxed out the shares. It is not going to happen. The death spiral will be dead as soon as the final shares are converted.

My irrational hope is that ERHE finds some cash to buy out the remaining $250K of CD's in cash to avoid issuing more bottomless priced shares. Even if they found a bad partner for Chad and they just paid ERHE back for the $2+ million in accrued expenses, they could get out of this cd debt for good.

[ssc]

Anyone familiar with penny stocks surviving on toxic debt would disagree with your conclusion. Pink sheets is filled with sub-penny stocks that repeat the cycle from triple zeros to reverse split to triple zeros again until there are no longer believers to buy the new shares. Things like delusion insurance, fear gaps, inside sources and rumors, gagged transfer agents are all part of the game.

At 8 cents, toxic lenders see plenty of opportunities to make high percentage gains over and over until the price gets down to low triple zeros. It has little to do with market cap and everything to do with the close to 3 billion new shares authorized to issue however PN and SO see fit to keep the game from ending.

While I don't believe this is what ERHC intended to occur, they made another serious and costly mistake when executing the reverse split. Anyone know what it was?

[Julius Erving]

Troy,

What is interesting here to note is, that this has been addressed already, some months ago...

Because it is mathematically impossible. They raised a paltry $2M by leveraging their $90M market cap and crushing it to just $900K.

Now why SSD forgot I'm not sure.

I also already said to him that for the first time Peter & Sylvan are true STEAKHOLDERS. They probably took a salary cut also! Makes their investment even more significant.

There is no INCENTIVE anymore for them to (if at all) 'crush' the share price or 'mismanagement'.

If CEPSA hits oil in several weeks, the payoff would create such an unbelievable gain, from the levels those two managers bought, I hardly want to think about that scenario.

But what did you think of my arguments regarding what happens when the first drill is a dry hole?

Please reread my posts about that scenario. Would it be 'the end' for ERHC, with them (and Offor and who else for that matter in the background) or is there simple too much potential still for the coming years, with glut oil slowly disappearing?

Can you tell me and the board how much dollars Peter and Sylvan lose if ERHC would go belly up?

Tell me and the board here:

$...