Replies to post #266459 on ERHC Energy Inc (ERHE)

[tryoty]

Usually.

[TOB]

Yes I agree,

The people who listened to all of the negativity about ERHC and sold when the share price was ninety cents are very happy campers right now. -midtieroil

Caution and profit taking is indeed important and often missing when ERHE is at its rally peaks and enthusiasm is dominant, just as optimism and buying appears missing at a low ERHE share price like the current, as historic price action has shown several times already.

The next time ERHE is at 90 cents, I'll be reminding people about the Value Proposition and the wisdom of taking at least some profits and reducing risk when a share price is 900% above the current level. (Or whatever peak we reach pre-drilling, perhaps higher, or lower.)

I too will be cautioning against the over-enthusiasm that takes over once the seismic and gravity studies have indicated good drilling prospects and the rig is en-route, when many may have a tendency to think this means it is a slam dunk that there will be drilling success.

The fact is, dry holes are not only possible, they are probable in the oil and gas exploration industry. So unless one is happy with the risk of a decline, and happy to hold through the next run up, it really is important to have some balance when the enthusiasm and the share price is at a high and book some profits from the pre-drill Exploration rally.

Lot's of new investors will be flocking in to buy at this next rally peak, and there will be no stopping the herd. But I hope those who understand the Value Proposition, and that a low share price during a period of low enthusiasm is a good buy point, will remember that the exploration run-up is not certain to result in a second discovery run-up during the blue development phase.

Of course if there's a discovery then removing risk at that point will prove the 'wrong' move, but in my book taking profits and removing risk is worthy of consideration when you are already well in profit and have the opportunity.

You are quite right of course that it is the additional studies, JV partners, independent reserve estimates, and so on which will bring us to the next rally peak, hopefully once again at least 90 cents and soon, but I hope this time around some of those who take on the risk of buying now below 20 cents will have gained the experience to take some profits and reduce their risk when the drill bit hits the dirt or water and the herd comes rushing in.

[nwtf]

They sold to take profit.

[jsc52033]

Did you consider the fact that those who did sell at .80-.90 and maybe some lower used the funds to buy back and are still here. But now have biger ships?