Replies to post #259788 on ERHC Energy Inc (ERHE)

[tryoty]

Don't rule it out...

Have am not pointing fingers at anyone, but will use the following scenario to illustrate how a large market cap can be generated by a small number of traders...

Trader "A" buys the stock at 20 cents because his interpretation of that chart suggests it will move higher. The stock moves as he suspected and he sells to trader "B", who thinks there is more room to run. Turns out trader "B" was right and the stock keeps going up. Now momo trader "C" decides to buy, and throw in a frustrated trader "A" that decides to rebuy...

...a very few number of active traders can run a stock up.

The same scenario applies to running the share price down via selling short. "A" sells short betting the stock will go down. If his bet is right he buys from "B" to cover his short to book his gain, but "B" believes the stock will continue to fall, and is selling to "A" short. In steps momo trader "C" and a frustrated tradr "A" to short it more... same result.

A few people passing a stock back and forth can make a difference. In reality it takes a pretty good number because the shareholder population of an issue will have their entry/exit points. The larger the percentage of traders in a company's shares, the more likely extreme volatility will result.

I mentioned a stock several of us on this board owned a decade ago... it went from 37 cents to 29 DOLLARS in just SEVEN MONTHS.

I'm not suggesting that will happen here, just that under the right circumstances, it could.

[petemantx]

5-8 years ago there was a lot of excitement re: JDZ/EEZ. Now there is much less, many investors have moved on (and I don't think many are still keeping tabs on ERHC)so the remaining group has become the main followers of the stock. Don't see much input from the road shows of the last 3-4 years as no real institutional investors have stepped forward so that leaves me to believe other than us the only other investors may be some with insider information that are getting in/getting out. All above just my opinion.

I have no reason to believe my view is any more valid than yours.

I extend this belief that nobody really has a clue to include all dabbling in this stock and that is my reasoning why I consider the market no more informed than us on this board. There may be an ERHC freak (no negative connotation intended) or two like TOB out there but very, very few IMO and he doesn't even put much weight in the outcome of the JDZ in the overall scheme of things for ERHC.

5 years ago or so I said in a post that I would consider a buyout offer of $5 as a slap in the face. Now I would take it and run.
There is a serious ongoing concern IMO with the stock in regards to financing. Thus, the market cap of the stock has dropped precipitously.