Mike Cutler
Long/short equity, event-driven, mid-cap, small-cap

Investors Cautioned To Read Hyperdynamics' Press Releases Carefully

Unlike many small oil companies, Hyperdynamics (NYSE:HDY) is an all or nothing situation. The company and investors will either strike it rich with its only Guinea offshore play or they will crash and burn without ever making a penny from drilling oil. From the latest 10-Q, Status of Our Business:

We have no source of operating income and there is no assurance when we will, if ever.

Investors have known this since 2003 when the company first announced seismic and other test results indicating a potential major oil and gas find off the West African coast of Guinea, the company's only significant holding. Since then Hyperdynamics' market cap has swung between $12 million and $1.3 billion, and...

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