Friday, April 04, 2008

Big Moves

Up again, down again, up again - the daily leaps and stumbles of ERHE are hard to predict and perhaps harder still to understand.

One certainty is that the penny-stock newsletters have been successively weighing in ever since we started our move up from around $0.25. Today's tipster, which rated a blurb on my E*Trade news engine, helped push the stock from $0.42 to $0.48 today (it's down at $0.45 as I post at 2:10PM ET Friday).

As long as the stock keeps performing like that, it's a certainty that the tipsters will keep pumping - that is, until they start dumping, which is less common now that the SEC has published the Threshhold list of short stocks.

Do the moves have any specific, substantial news behind them? 'Fraid not.

But there is always one piece of news that ought to be driving this stock higher every day, guided by caution since the jury is still out, literally, on the FBI and SEC bribery allegations - and that is that within four or five months or seven or eight months, Addax, Sinopec and the drillship Aban Abraham are going to start exploring on Block 4, and that's all she wrote.

There is a virtual certainty the Gulf of Guinea concession where we hold a 26 percent interest is brimming with black gold.

I was struck by the fact that posters didn't know who Mary Kay Dimke is. She's the U.S. Attorney to whom the FBI/SEC investigation of alleged foreign bribery is assigned, and who is making her case as we speak in front of Federal Grand Jury in Houston. The fact that she stopped by to check some information from 2006 was more than interesting to me; I felt as though the time of decision on whether to hand down indictments is near.

Of course, if you do sell your stock and I buy it, you can blame me, yourself or her; as I've said for the past few weeks, anyone selling now is just inviting themselves to get aced out of very large gains.

Hang on, as always. If the indictments do come down, those, too, will pass. ERHC Energy is going to be a winner, I believe, no matter what.

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