The $0.04 drop in ERHC Energy's share price Monday was not unexpected, and some longs are now positioning themselves to buy again in the $0.38 or higher range within the week. More daring traders may look for a steeper decline, perhaps to $0.36 or even $0.34.
Whatever we give back this week, however, is likely to be restored sooner rather than later as the Production Sharing Contracts and Joint Operating Agreements grow closer to completion.
We expect the heat to start helping our balloon rise in early September, with perhaps another an extended plateau after that and then some steady gains as October comes and goes.
By December, particularly if the PSC and JOAs are brought in on time and announcements are made relative the acquisition of drill ships or semi-submersibles and exploration, we could again be testing historic highs. Christmas has usually been a great time for ERHE.
The buying of the past week has been encouraging, but it did not last. It wasn't supported in any overt way by the company, and now that it appears to be at an end, the seller who has plagued us all summer can resume his or her mnission.
Their motives, and even their sales, are ultimately irrelevant; we are headed for blue skies, and probably a buyout, and I think nothing will stop us along the way.