Profit-takers joined with doomsayers to sink ERHC Energy shares $0.078 today, a loss of $9,597 for the ERHC On The Move portfolio of 123,040 shares. Given that nothing has changed with respect to award delays, shares are likely to repeat the same performance tomorrow, and we expect a loss of $0.06 to $0.08 to the $0.47 range.
Volume was a substantial 4,356,390 shares, a larger number than the volume that took the share price up on Friday.
The price fall began shortly after the open, when the stock hit a momentary high of $0.65, and continued throughout the day. Friday's price surge was marked by a frenzy of last-minute buying in the late afternoon, when it still looked like awards would be made this week in the second licensing round for six choice oil blocks in the Nigeria Sao Tome and Principe Joint Development Zone. Now those awards appear to be delayed at least until April 15, and possibly for the customary (for Nigeria) four to six months.
The scenario again was one of "dueling dailies," as This Day Online suggested the delay was due to time given ExxonMobil to make its preferential choices in two blocks on offer, and The Punch of Nigeria laid the blame at the feet of Nigerian President Olusegun Obasanjo and Sao Tome and Principe President Fradique Menezes.
Those articles, ERHC On The Move said today, were likely to have been strategically planted stories that were intended to make cheaper shares available to some investors.
One trader posted on Raging Bull that he had seen a pattern in five sales that started below the bid price and drove the share price down each time. That has been a fairly common tactic used against ERHE and its predecessor, ERHC, in recent months, when investors gave up millions of shares at bargain-basement prices, spurred by negative news or no news and a dismal drop in share price as the days progressed.
If recent history is any judge, the buying may not begin again until the stock settles into the low $0.40s.
ERHC On The Move has neither bought nor sold the stock since November, and has not sold any shares in recent months. However, while we do not intend to sell ourselves, we recommend that investors who want to make short-term gains do so now and reposition themselves as the share price slips below $0.50.
We reiterate that the slide is only due to the desire of some traders, notably RB poster Stockhocker70, to make gains on the swing rather than any fundamental problem with the asset.
Disclosure: Stockhocker70, a self-admitted swing trader from Louisiana, TOS'd me from the ERHC board after I posted news stories from Nigerian newspapers that he claims were false but which in fact were truthful. Rather than continue to be harassed, I started this blog. We present news and opinion that is unrelated to any strategic decision on our part to buy or sell, and continually disclose our personal holdings here.
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13 comments:
We expect a drop???
How the hell is WE.
You mean "I expect". This is your BLOG.
Gee Joe thanks for the good news...
Joe your article had credibilty until you said the below excerpt. How do you come up with this?? Pure speculation.
"Now those awards appear to be delayed at least until April 15, and possibly for the customary (for Nigeria) four to six months."
Joe does it again...interlacing his personal hope for a drop, for whatever reason, sounding as a fact. There is no basis for his prognostication. It's crazy to suggest this iwlll drop to .47.
Joe states he hasn't sold and implies he'll hold on. What he doesn't say is if he would pick up more. That's his agenda. I recall on his earlier blog he wanted to buy more shares. This is probalby the last chance to wish for a potentially a drop in price before teh award if Joe beats his drums loudly enough. It isn't going to happen.
What is the purpose of your price projection? I find it questionable that you feel qualified and somehow obligated to tell us what you (we, as you say) think the price will be.
Please tell us about your qualifications and why you started this blog to make price projections.
Joe, "predicting" day-to-day share price movements is a waste of time. You act like a 12 year old when speculating what the share price will do the next day... give us all a break. Thanks for the reporting.
Thanks MarkvolO OH HA!!
Ha Ha Joe, you atttempt to drive the price lower backfired. Bet you sold out contrary to your claim earlier. Now you'll have buy back higher first thing in the morning. I see a huge GAPP in the morning.
Joe, let me suggest the following headline for tommrow
Joe Shea's holdings plunges another 33% on failed swing trading tactic...
Thinking to influnece and drive the price futher south on Monday, Joe Shea dumped all of his shares at .58 before doing the unthinkable of projecting futher demise of the share price. Using carefully crafted words, inneundos, and ridiculous price projections made out to be real, Joe hammered away at ERHE on Monday in a failed attempt to drive down the price further south. His attempt to exploit a small rumor about more award delays backfired as a respected nigerian news agency article validates not only soon to be announced awards but also ERHE possibly winning operatorship in the most contested block. ERHE subseqntly opens 40% higher in the early morning trading before Joe's buy order is finally filled at 60% premiemum. Joe, acting irrationally from being shocked seeing his previously 123K shares holding reduced to 40,000 closes his position at a loss at first signs of a retracement. He currently can be seen bashing away at ERHE hoping to dirve the price down below .10 in hopes of reacquiring his 123K shares....
HA HA HA !!!!
joey blogface- if you sold you are a moron. if not, you're pretty cool dude! don't report letters sent in regarding 1 week delays...it's crazy talk! i also like blueberries and dance in the wind in the nude with little pumpkins on my knee cap!
joey blogface- if you sold you are a moron. if not, you're pretty cool dude! don't report letters sent in regarding 1 week delays...it's crazy talk! i also like blueberries and dance in the wind in the nude with little pumpkins on my knee cap!
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