Investors Cautioned To Read Hyperdynamics' Press Releases Carefully
- Hyperdynamics has suffered terrible news: dilution, non-commercial first well, CFO and accounting firm resignations, SEC/DOJ subpoenas, NYSE delisting warnings, numerous lawsuits, and a force majeure declaration by its majority partner.
- The May 5 press release stating removal of the force majeure declaration looks positive on the surface, sending the stock price up over 200% near prior levels.
- The most positive possible outcome from this most recent event would still be net negative from February: delayed drilling, burned cash and newly strained partner relations.
- A careful reading of the events leading up to and including the May 5 press release paints a very different picture from investors' positive reactions.
- I believe the stock price increased too far too fast based on this tepid news and could fall back to prior levels of $1.50 or lower.