Everyone seems to have had a shocking experience with this stock unless you got out when the sp rallied up around 50-60c, and I understand the sentiment towards the management who have apparently been abusing their positions is extremely negative. Im unclear as to why erh has lost its rights over the brazil assets. Could someone please explain this to me.
I have been buying in at these levels and anticipate brighter things for the future because I dont think it could get any worse than it has been. I am confident this horizontal drill will be successful in kansas and should send the sp flying. If the flow rates come through and are even a couple hundred barrels a day I think erh should get a serious re-rating back up around 20c. All reasonably possible in my opinion. Definitely worth a good punt at these levels. Id like to know what has happened with these brazil assets and what the likelihood is of reviving them? Some of the management have been leaving the team, perhaps a good shuffle around on the board and some new blood will be enough to bring erh back to some former glory. With a 2.5c entry level for me, a 10 bagger at 25c which isnt even 1/2 of erh's highs would suit me very nicely. Why wouldnt this seem possible over the next few months?
ERH Price at posting:
3.0¢ Sentiment: Buy Disclosure: Held
