Trading Updates: Sales Taper Off And A Small Gain Appears

The six long days of selling that finally came to end Wednesday are the price of victory. Victory, you say? With losses like these in our portfolios?

Our portfolios are not our investment; the companies we choose to put our money in are the investments. It's sometimes worthwhile to remember that distinction, particularly when a company you resolutely believe in suffers a sharp downturn.

I look at what has happened over the past six days rather differently from others, because I knew what was happening: We simply had to sell shares to get the money we need to pay signature bonuses, and as I started telling readers last week, we had to sell at least 40 million shares before the price would start to rise again. Then word came Wednesday morning that ERHC Energy spokesman John Coleman had also registered his intent to sell 3,550,000 shares, and the volume had to reflect that number of shares as well.

It all came together Wednesday. After a long morning of selling that saw the price fall to $0.455 at one point, we reached the requite number of shares and began to rise, closing in the green at $0.51 for the first time since June 1. But a burst of selling at the end of the day - some 193,000 shares in 24 trades, tempered the optimism. There are still lots of shares to sell, but much more buying interest all the same.

In a note from our favorite poster, mutwadadi, on Wednesday, he mentioned a time frame for a rumored buyout that he is hearing in Nigeria. That is just speculation, and he doesn't endorse or disavow it, but it's another indication that our doldrums will not last for long.

Don't look for quick, massive gains, but look for backsliding and then gains today and tomorrow, gains all through next week, and then for several weeks to come. Also look for at least two one-day price reversals during that time, probably of $0.10 to $0.15 each and possibly beginning as soon as Friday, and look for resumed buying into the $1 range through the beginning of July.

The exciting part is just beginning. There's not much of a crowd around now, and we will start quietly, but steadily, to realize our "minnow's" full potential.

Update, 4:05pm, 6/9/05: We closed at $0.615, a nice $0.105 gain for the day, and an improvement of $12,600 for the ERHC On The Move portfolio of 120,000 shares with an average cost of $0.43.74.

Update, 3:50pm, 6/9/05: With 10 minutes to we're at $0.625, the Bid, and the Ask is $0.63. Volume is a healthy 3,023,000 shares.

Update, 3:38pm, 6/9/05: The bid is now $0.60, the Ask $0.605, and the price is $0.60 with 2,720,500 shares sold.

Update, 3:03pm, 6/9/05: The price is $0.60 now, the Ask, with the Bid at $0.595. We're up 17.65 percent on the day, or $0.09. Volume is 2,506,00 shares.

Update, 1:43pm, 6/9/05: The Bid is $0.59 and the Ask is $0.594 as the price slips to $0.59 from $0.595. Volume is 1,877,300 shares.

Update, 12:56pm, 6/9/05: The Bid is now $0.58 and the Ask $0.59, while the price is $0.58 on 1,308,500 shares.

Update, 12:40pm, 6/9/05: The Bid is now $0.57 and the Ask $0.575, with the price at the Bid and volume at 1,224,500 shares.

Update, 11:54am, 6/9/05: Today's gains are proving remarkably resilient so far. The price is $0.569 after just dropping from $0.57. The Bid is $0.56 and rthe Ask is $0.569, and volume is now 1,023,600.

Update, 11:00am, 6/9/05: As anticipated, we have seen a nice gain this morning on low but regular volume of 670,688 shares. The price is currently $0.545 after hitting $0.56 a minute or two ago. The Bid is $0.545 and the Ask is $0.55.

We can't guarantee all the gains will stick, but we should close in the green once again Thursday afternoon..