It's been painful, but I've had to sell some 8,000 shares over the past month to meet my obligations, leaving me with 112,000 shares of ERHC Energy that today are priced at $0.37 for a grand total of $41,440. What a far cry from the excitement of last May, when they were valued at $105,000!
As most of you will remember, I advised most of you to sell on the Friday before the May 31 awards, citing the comments of the Sao Tome Prime Minister that seemed to augur more delays. I only wish I had taken my own advice, as hundreds of other traders did.
Yet having been here before several times, and watching the pump begin to build again on Raging Bull, I remain confident that by December we will be back in the high $0.50s or low $0.60s, and into the $0.70s in February.
The company has still not made a commitment to communicating with shareholders - although letters to Deborah Buks, the ERHE spokeswoman, do get a prompt answer - and thus, despite several promises, has not updated its Website even to add the several front-page and major wire service stories that trace its history, and least of all issued any press releases that might encourage investors.
That said, we see the historic cycle of the past several years revisiting this issue and a low this month of $0.295. By September, we expect, the price will climb back into the safer $0.40s once again.
There is one caveat to all this, however. We can't discount entirely the buyout talk that Barry Morgan of UpstreamOnline reported - he said there was an offer on the table - nor that there is an ERHC Energy bid for one of the Nigerian EEZ blocks, as reported exclusively here last week.
So? This stock is subject to surprises. I think any investor would be remiss if they did not half expect one.
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