Replies to post #99482 on ERHC Energy Inc (ERHE)

[Electick]

Doug, acquisitions are done to capture assets/revenues or strategic position. Share price has nothing to do with it at all. RS is normally motivated by listing requirements to either get on or stay on an exchange, or to achieve a share price adequate to make the cut with institutional purchasers with sp minimums. I doubt any of those scenairos are in play here. Our board (what board?) and executive management (??)has plenty more to focus on than the number of outstanding shares.

[redinvest]

Doug, I've seen several reverse splits with pennies. Most are in the 100/1, 200/1, even 1000/1 area. Looking back, it appears they were done strictly to enrich the CEO, who then, on cue, either increased the authorized and brought more of them into the outstanding shares or simply just created dilution by bringing the the AS into the OS.

Reverses do not affect the market cap. The MC is affected by either buying or selling after the reverse.

My experience tells me that small reverses, maybe a 10/1 that is rumored here, that is DONE FOR THE RIGHT REASON, i.e. fulfilling the structure of a merger, or perhaps to qualify for a higher exchange, is fine.

I don't expect anything like this would occur until the SEC thing is cleared up more or drilling begins.

ERHE's pps at this lowball is rock solid, Rock of Gilbralter. The only time it ever breached this support was when the coup happenned on STP. AND, in that case, the pps quickly ascended back into the lower thirties.

JMO

Red