The move was not necessarily made for any other reason than that it is Memon's first opportunity to register the shares as required by the Securities Exchange Commission.
But the prospect of a possible indictment from the ongoing FBI investigation of ERHC's dealings with Sao Tome and Nigerian officials, or a fine arising from the SEC's current Nigeria-Sao Tome Joint Development Zone, probably unsettled investors who were buoyed just last week by a $0.03 gain in the share price to $0.39 from lingering lows of $0.34.
As we see it, though, the filing is immaterial. Some posters have suggesed the former CEO was moved to register the sale by coming good news about a possible buyout from Sinopec, or any number of other rumors that have surfaced on I-Hub in recent months. None have panned out, however, and we feel significant movement is unlikely to come until the FBI and SEC issues are resolved.
Indeed, when that may happen is the most salient question facing prospective investors, who are advised once again to be watchful and cautious. We do believe the share price will make a comeback at least to the $0.50 level before the year is out, and we believe that resurgence will be attributable to good news about the probes. Those, we feel certain, are politically motivated and unlikely to prosper. In the meantime, we remain out of the stock, although we hope to make an entry at the @0.34 level or lower in coming weeks.
Here is the essence of the Memon registration document:Br>
FILER: MEMON ALI
BROKER: NFS LLC
RESTRICTED SHARES TO SELL: 1,272,727 DATE REGISTERED: 11/3/2006
APPROXIMATE DATE OF SALE: N/A