re: Official Erin Energy (ERN) thread

Damn it's dropping like a rock. I guess it's kind of good for us on the sidelines wanting to get in but at the same time something has to be making it go down. Now just gotta figure out when we think it might start the climb back up

I completely agree and I missed the first real climb for profit that's why I've just been watching.

quote:

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Pump and Dumps don't span over months. the pump happens over a few days....couple of weeks at the most

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keep telling yourself that as its down another 20% today....

LINK

Looks to me like its just the wires hitting more mainstream sites about the "investigation" by Saul Goodman and the rest of the dollar general strip mall lawyers.

Investing in an exploration company run by Nigerians, drilling offshore Nigeria is always a good idea. Hell, those guys have princes that sometimes will pay you $1MM to help them get $10MM out of a bank account. That being said, I'm shocked ERN is tanking.

Whenever I have seen a pump and dump, I have also seen an advertising campaign. That has always been with OTC stocks though, so I don't know as well what it would look like for stocks trading on the AMEX, NASDAQ, etc. Either way, I have avoided those stocks. There are obviously pumpers in stock message boards, such as Ihub and Yahoo Finance, but I don't believe they have much power to sway stock prices unless they have considerable followers. rickdplumr on Yahoo Finance and Stock Twits I would call a pumper, though I would also say he is overly emotional for trading or investing. Trading and investing requires one to not act on emotions and to be disciplined to follow one's rule book. The rick fellow is going to lose money in the stock market long term, though he may get lucky occasionally. Anyway, I have seen no mention of CAK/ERN on any of the investing or trading subreddits, such as wallstreetbets. I figure if this was a pump and dump, then pumpers would go to those boards so their posts are seen by a larger audience.

I actually hate pumpers. Dumpers too. They're irrational, emotional, and they take up space in what could be informative discussions about a company and its stock. Companies don't need cheerleaders (and definitely not bashers), they need informed shareholders. The uninformed and undisciplined will bail at the first sign of trouble, and that is partly the cause of this price drop (along with heavy shorting and perhaps an overoptimistic price increase in the first place).

Of course, with my arrival here coinciding with the continued price decline, along with a lack of a post history (which will change with time), I don't blame you or anyone else for thinking that I am a pumper. I rightfully have to prove myself not to be one. I will say that I invested in this company for fundamental reasons. I think the financial statements look bad, but that'll change in time. But 12 barrels of recoverable oil per share in just the Miocene formation got my attention, since Chevron has 6-7 barrels a share. Sure, they'll need help, as I've said, but based on the information I have, I think it will pay off.

I don't really consider anyone in this thread to be a pumper, IG, though I may have a different definition of a pumper in my mind than in everyone else's. In my mind, a pumper tries to cheer on the stock and convince people to invest based on emotions and promises of profit, usually without mentioning the level of risk. You and Gene have both stated that this does have a high level of profit, but you also mention the risks and point out fundamental issues for the company, both good and bad. Pumpers wouldn't want to mention bad news or information for fear of doubt setting in. But I can't guarantee what anyone on the internet may be. For all anyone knows, I could be a dinosaur wishing humans would stop inconsiderately digging up the graves of my ancestors and putting their skeletons on display.

This is part of the reason I chose to essentially close out my position. I was happy with $7.75-8, I didn't want to risk a drop below that and the panic that would ensure



Additionally, if there is legit oil and assets ERN controls, dropping the price of the stock makes ERN an attractive buyout candidate. No one in their right mind would purchase ERN at $7+/share with the premium over share price + huge acquisition costs that come with.


ERN being sold for say $5/share is highly lucrative to the major shareholders, PIC + Lawal + ERN management whose cost basis is extremely low. For example, if PIC were to sell, they would flood the market and ERN would crash. PIC would have a pretty awesome profit if sold for $5