Replies to post #248807 on ERHC Energy Inc (ERHE)

[tryoty]

So you need proof that the shelf caused the decline?

On April 26th, 2010, ERHC announced that biogenic gas was found across all three blocks:

http://erhc.com/news/chief-executive-officer-updates-erhc-energy-inc-shareholders/

The share price decline that brought us to 8 cents started in October, FIVE months after the announcement. Do you really want to take the stance that the market read the announcement and took FIVE months to react to the poor drilling results? As I said, the initial reaction to the shelf registration was positive because the market felt it was a signal that much higher share prices were to follow (e.g., more detailed results and phase II commitment), since raising capital at the 30 cent level would be crazy when they still had plenty of cash to last 3-4 years. When the placement was executed October 4th and undercut the market by 30%, all the red flags went up and the sirens sounded... ERHC was signaling it was in trouble.

We've been in a share price decline ever since, and with every PR that says they still intend on raising capital another nail is pounded into the cap on the share price. Peter Ntephe may be a highly educated lawyer that is loyal to Offor, but he has absolutely no understanding of the OTCBB market. On the OTC dilution will be met with severe selloffs every time. That's a fact that Peter Ntephe, and apparently you, do not understand.

Two things will remove the cap on the share price. Either a very material news event that suggests near term share apprecition (e.g., phase II drilling, quality EEZ partner, etc); or Peter Ntephe needs to state that the shelf will remain idle until much higher prices are reached.

[mz157]

you have not demostrated anything. In fact, I would say you are probably wrong. ERHC presented at R&R on 9/15/10. On 9/13, ERHC had closed at a medium-term high of .375. Is it a coincidence that ERHC has never seen that price again and lost 20% on 9/15??? the same day they most likely found a buyer for the PP? ever since R&R on 9/15, the SP has been in a massive downtrend. Sorry, but i dont buy your "conclusive demonstration".