Hyperdynamics Corp (HDYNQ)

[CashMcMogulson]

You have to downplay SP expectations. The market is never going to place this at more than a $2B market cap with a discovery. And nobody, until they drill appraisals and other wells, will pay over $1B. Reason? You don't pay $1B unless you know you'll make way more than that back. You pay $1B because your financial metrics show you'll bring in revenue of $3B on costs of $2B ($1B for purchase, $1B for drilling).

There is going to be a large discount in purchase price because HDY doesn't have much negotiating power. That can't say "well, we dont' like your offer so we'll drill it our self."