rbtree,
I greeted you to this board when you first appeared, because I like to welcome investors of all types to ERHE whether they take a bullish or bearish stance. Investors in ERHC welcome both discourse and debate over the opinions espoused here. Hence, I would love to hear your unbiased take on this investment.
That said, I also issued a DAY ONE warning regarding any new short sellers (and I'm not insinuating that you or anyone here would dare short this stock. I'm just talking in very general terms). The DAY ONE warning acts as a prophecy, which warns short sellers on their first day of shorting of the stock to take heed. This company, ERHC ENERGY, while it has had its adversities, has overcome nearly all of them with the most recent achievement accomplished when the SEC issued its dismissal of ERHC's stock revocation proceeding, something I accurately predicted would eventually happen.
With the prospect of a share revocation now gone forever, short sellers lack any foundation to make claims that a short position in this stock somehow lacks peril. It's peril galore now.
The only option available to short sellers requires constant shorting of the stock to keep the share price low enough to avoid a margin call. A margin call at this point would serve as the "kiss of death", as a chain reaction of short sellers repeatedly covering, witness the share price rise ever higher. And with each new level higher in share price, the short sellers' stock brokers will force yet another liquidation yet again triggering ever more painful margin calls for the shorts.
We must understand that a stock broker will not pause but rather force liquidate the shorts' position by buying shares at whatever price sits on the ask.
I assure you that with over 50% of the shares outstanding owned by a handful of rag tag mavericks along with who knows how many shares owned by the founder of the company (now clearly serving as the chairman of the board, and thereby confirming on some level that he must own significant shares), shorts will have no other options than to buy from this group. Furthermore, given that Emeka Offor attained the chairmanship of the Company without so much as a shareholder vote, strongly suggests that Offor must already own 50 to 100% of the Company. And if a small group of investors owns 50% also, then how on earth can the short sellers of ERHE ever expect to cover at a reasonable price which does not exceed their break even price? Answer: They simply cannot.
This small group of investors stands ready to absolutely skewer short sellers and hand them their ass on a first come first serve basis.
The early ones might survive relatively unscathed. But short sellers with large positions will not have that opportunity to unwind. And eventually no one else but the largest shareholder will be left from whom to purchase shares under a forced liquidation by the broker.
That largest shareholder, per SEC filings, is me . And as anyone who knows me will attest, I am certainly a force that every short seller in ERHC will remember for decades to come as they try to find an abode under some bridge in Canada.
And that's when they'll know that their losses have only just begun.
That said, I suggest short sellers take a look above their heads...because the Sword of Damocles will dangle no more ... short sellers took the bait for years by shorting a stock they thought violated SEC disclosure rules, without realizing that a local Houston judge's ruling takes primacy over the SEC's rules, and becomes the law of the land. I suppose since most short sellers are Canadian, they have no clue of the weight that 10th amendment of the Constitution holds over such matters.
At the end of the day short sellers will know that they're faced with a checkmate, whose aftermath, may very well go down in history books as the world's greatest ever colossal trading mistake.
Good luck to you my fellow stakeholder in ERHC success or lack thereof.
I know that short sellers will certainly need that luck.
Krombacher
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