A tremendous surge in volume and price hit ERHC today, following almost a week of rumors and other information that indicates the company's bid for blocks in the Nigeria-Sao Tome and Principe Joint Development Zone have been successful.
The stock opened at $0.47 and closed the day at $0.55, a roaring 17 percent surge that saw the ticker tape break at 2,150,367 shares.
The phenomenal recovery also validated the long-held ERHC On The Move observation that most large price moves come at the end of three-day weekends. There is no causal explanation for that phenomena.
But since no news has come since rumors flew last week that the bids and awards have been settled, and authorities in Nigeria say the official announcement of awards will come at the end of the month, the company's 2,235 shareholders face the prospect of a steady rise in share price up until the day of the announcement.
If, as sources relied upon by ERHC On The Move reported here last Friday, the ERHC bids for Blocks 2 and 4 have gained them operatorship in those blocks, the share price could even then climb dramatically. A lesser showing would not notably dampen the price, especially if all the preferential rights ERHC has exercised in this round are granted. In the event, as some contend, ERHC wins Blocks 2, 3 and 4, the share price might gyrate wildly upwards for days afterwards.
ERHC On The Move, in addition to predicting today's price hike, has suggested that early March will see a takeover, merger or buyout effort that will send the stock to the $6 range. That view is widely derided, however, as was the three-day weekend theory.
For ERHC On The Move today's $0.08 gain to $0.55 meant a gain of $9,670, which yields a $13,431.92 net gain so far on 123,000 shares purchased at an average of $0.4394. The high for the day was $0.56
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4 comments:
Rancho says that Joe might be a little wacky when he predicts his 3-day weekend price surge, but he hit the nail on the head this time. Some patterns do repeat themselves for whatever reason. Coincidental, but true.
I was hoping he would have hit the nail on the head a little harder and the price finished at .60, but considering the situation, all is good.
BTW, if Joe is right about his $6 buyout in early spring, then someone should buy him lunch. Maybe he'll buy dinner.
If joe's $6 prediction comes true later in the year, i'll even throw in a dessert with the lunch.....
Rancho thinks this is of interest:
http://www.washtimes.com/national/20050117-115550-1929r.htm
If Joe is right about the $6 buyout, I'll even throw in Pam Anderson. Sincerely, Tommy
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