Have We Finally Hit Bottom?

On the IBC Network show "Stock Talk" this morning, where I spoke about ERHC Energy (OTC BB stock symbol: ERHE) and its prospects, the host noted that we had apparently reached "a double or triple bottom."

Have we finally gone as low as we're going to go? It's a real possibility, because although we closed unchanged at the abysmally low price of $0.39, that price reflects a startling turnaround in today's action, which was largely dominated by bottom-feeders.

According to ADVFN, Buys and Sells of ERHE were even at 12:21pm EDT, and after that, the price didn't improve substantially but buying did. While there were just 90 trades today, the tide turned when someone went on at least a 30,000-share buying spree at 12:14pm EDT.

Trades totaling 30,400 shares, of 5,000, 10,000, 10,000, 3,000, 1000, 400, 5000 and 1,500 between 12:14pm and 12:59pm EDT, all Buys, saw the balance of Buys and Sells shift. At 12:21, with the second buy of 10,000, Buys took the lead over Sells by 183,500 shares to 181,495 shares.

The purchase of 30,400 shares beginning with trade number 50, in lots of 2,500, 10,000, 2,500, 12,000 and 8,500, was followed by the immediate sale, in five straight Sells, of 35,500 shares. All but one of those 8 Buys went off at $0.40, with the exception - the first trade - going off at $0.395. The first two of the next five sells sells went off at $0.395, and three more went off at $0.39, yielding a total profit of less than $70.

Obviously, the buyer and seller were the same person, and they wearied of the effort as commissions ate up miniscule profits.

When the last of the second group, the Sells, was sold at 1:37pm EDT in trade number 62, the Buys to Sells stood at 189,900 to 216,995. By trade number 90 at the close, the Buys outnumbered Sells 332,456 to 244,995.

At 3:31pm EDT, buying kicked in and nine straight Buys totaling 39,510 shares closed the day, with the last at 3:56pm. At 3:57:40, the weary seller forked over another 5,000 at $0.395, and that was all she wrote.

It looks like a bottom to me.