A 15% decline in the stock price for a day might not be much for a penny stock company, but the case of ERHC Energy Inc (OTC:ERHE) is different. An all-time bottom is reached, breaking into sub-penny levels and the question is – what comes next? 
Two years ago, back in 2009 things were much different. ERHC was heading for the $1 per share. Constant high trading activity supported the stock, yet it did not manage to go above $0.88. In terms, a steady decline was to follow, one that continues even now. Yesterday’s session is a significant one, because it is the first one in the whole trading history of the company that would show a stock price falling below $0.01 per share. More than 2 million shares exchanged hands that day. The interesting part – there is no news at hand, no promotions, nothing to justify this record low level.
Now, it is important to mention that most penny stocks with such crashing stock prices usually share quite an unappealing balance sheet. ERHC does not. An example is the data from the latest 10-Q with an end date March 31st, 2011:
- $12.2 million in cash; [BANNER]
- $17.4 million in total current assets;
- $276k in total current liabilities;
- $77 million in accumulated deficit;
- $2.2 million in net loss;
Not an inspiring financial condition, but at least one that shows the company is not in desperate need of funding to continue operations. Operations is a key word, indeed. Back in the days when the stock tripled and even quadrupled its value, it was because shareholders believed that there would soon be operations leading to high revenues and profits for the company, and thus profit for each shareholder. Yet, as the time progresses, there is still the mounting accumulated deficit at hand, and the uncertainty that comes along with ERHC. In terms, if this situation remains for the rest of the year, there could be potentially new records on the stock market that shareholders would probably not enjoy at all.
