Hyperdynamics Corp (HDY)


While doing my 'due diligence' on Ensco International, I read in the Yahoo message forums a cross-post 'spam' on HDY. This is a tiny public company operating at a loss that looks like it might be on the verge of a breakout due to some emerging oil exploration off the coast of Guinea.

Friday's close looked like the start of a streak, so I bought in at $3.11 on 1/31/05. Added to the position at $3.11 - 3.15 within the IRA (I'm still figuring out the strategy of IRA vs. brokerage accounts) over the following week or two.

This one has been all over the map, and it's all about the speculation. If the deal comes through, it should do very well. If the deal tanks, then the stock will slink back down.

The Yahoo message board for HDY has been something of a freak show. There seems to be a cadre of 'true believers' in the stock there who tell a compelling story. Then there are 'the bashers', whom one would have to assume are holding 'short positions' and trying to sow 'fear and loathing' in the stock to drive the price down.

For the most part, the true believers (or 'true longs') can get their points across in a way that is 'basher repellent'. Unfortunately in the heat of battle homophobia, ugly racism, jingoism and all sorts of crude language rear up. One is left to wade through it and try to decipher some truth.

At the moment (2/19/06), I am a bit 'too long' in this one for my comfort. If it 'hits', I will of course feel vindicated, but I have no appetite for accumulating more.

OK, this is a wild ride. Today (3/10/06), I took some of my Terabeam 'winnings' (not) and bought some more HDY at $2.13. Closed at $2.80 that same day, and it almost made me look like I know what I'm doing.

Still waiting for 'the story' to break, validating this pick. I'll dump a little if it passes through $5-6 in order to bank my profit (and clean up an account that I intend to 'manage' as a diversified ETF strategy).

Bought a little more today (3/22/06) at $2.50, partially in anticipation of selling some out of the ETF account.

Great news on 3/24/06, looks like this story might be moving forwards. Monday will be interesting.

Been asleep on this one, waiting for news. Nevertheless, sold the piece I had in the ETF account on 06/06/07 for $3.30 a share, a slight profit.



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