Replies to post #18385 on Addax Petroleum (fka AXC)

[Krombacher]

Sounds like your describing a chicken and egg problem, which came first the chicken or the egg? Which comes first financial reporting or a rise in share price?

You indicate that financial reporting of good news will result in a higher share price... and while that is true under the regular model, it is not the new paradigm way.

Under the new paradigm, investors must first show loyalty and blind faith before getting rewarded with information.

That means they must first buy and the resulting rise in the share price will lead to the company having to report its financials by law.

But so long as we are sub penny, the company has no such legal obligation.

Krombacher

[ssc]

It is incredible to read of people supporting management and its complete blackout of information to the public when such actions were initiated, according to the experts, to allow Offor and friends to accumulate half of the erhe shares at prices near zero. While I don't believe this to be the case, if that theory proves to be true I don't see erhc ever publicly disclosing what it has done and who the major shareholders are.

Add to that the possibility that, in order to pay legal expenses, erhc has already issued some type of convertible debt or preferred stock or warrants. Existing shares may have already been diluted without shareholders even being aware of it because of the non-reporting choice by the company. The last official communication from erhc was an 8-K warning about financial difficulties caused by ongoing litigation:

The legal and ancillary costs of participating in the arbitration and advocating ERHC BVI’s position, have been significant and had a deleterious effect on the finances of ERHC BVI and of ERHC Energy Inc. which is ERHC BVI’s parent-company affiliate.

I'm not saying this has actually happened, but funding to pay legal expenses had to come from somewhere, and everyone knows erhc had no problem issuing toxic debt and diluting and reverse splitting shareholders into oblivion in the past. And since they don't report, anything could be going on.

Just more reasons why the stock trades near zero. I've never seen a legitimate public company decline to report good news that would bolster its share price. But I have seen many different efforts made to hide or disguise bad news. Just sayin'.

[oldoil]

We're all (most all) probably all on the same page...Messages well said...I'm curious about our Block 11A
mentioned that in another post...