Monday, December 04, 2006

ERHC Shares Up 38.89 % On No News; Beware Of Buyout Scenario

Shares of ERHC Energy have rocketed upward on stronger-than usual volume from the opening bell this morning, possibly in anticipation of the announcement I said on Friday that coukld come from the Justice Dept., SEC or the company regarding its issues under the Foreign Corrupt Practices Act.

What some investors are being told, however, through the made-up entity "S. Freed" on the subscriber-based, pumpers-only Elephant Fields board, is that Sir Emeka Offor has decided to sell 20 percent of the company for somewhere in the range of $2 per share. This hidden-source rocketry may cost some investors dearly, as the information is almost certainly false, I believe, and their willingness to buy in anticipation of such a deal will be used to clean them out once again.

With the share price at 3:12pm standing $0.50 - now up $0.14, or 38.89 percent, the real certainty to me is that the Justice Dept. has, as we have said all along, found no evidence of wrongdoing by ERHC Energy and will not seek an indictment.

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