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You can blame computer trading. It can lock in a trading range all day to the benefit of the HFTs.
Hold on guys. While great news, is nobody paying attention to fine print?
"Diligent efforts are being made to satisfy the conditions to resuming petroleum operations which include clarification that the U.S. FCPA investigations of Hyperdynamics will not adversely affect Tullow's operations under the PSC."
That's why the stock is still in the 2s. There is still risk that Guinea could kick out HDY from the PSC and terminate the PSC. Tullow wants zero risk (or they get it all).
Questions that have zero chance of being answered tomorrow:
1) How much time to do you spend on your company Hypdernamics (since you are presenting here)?
2) Why is the cash burn $1M/month for legal expenses for your company. You're in DOJ/SEC discovery phase and the legal team isn't spending any time in the court room. It shouldn't cost that much to send documents and draft responses to the DOJ/SEC. That should be handled mainly in house with only review by outside legal.
3) What is your current relationship with Tullow? Are you speaking daily?
4) As CEO, what value do you bring to the company in order to justify an over $600k/year salary (not including options)?
How is it clear they self reported? I'm not buying that without proof. You wouldn't wait until the statute of limitations is about to run out to self-report. You self report right after the incident to NARROW the window of exposure.
That statement is the reason the ambulance chasers have piled on. They are grasping at straws saying Ray knew it was an issue, didn't disclose it, and the company should cover shareholder losses. The lawsuits (if any get filed as they may not have enough people) is flimsy at best. However, it costs HDY money to have to deal with them.
First class to London or Paris on United to have pretend talks with Tullow and/or Guinea? I'm sure he's very cost concious....
The last part made me laugh:
"During his four years as CEO of Hyperdynamics he has built an organization that raised over $200 MM, drilled and operated the first deep-water well offshore Guinea and is now listed on the New York Stock Exchange"
should be:
"During his four years as CEO of Hyperdynamics he has destroyed over $200 MM of shareholder value, drilled a dry hole offshore Guinea and is now in danger of being delisted by the New York Stock Exchange"
Positive? There almost certainly will be a moderator who won't let HDY questions be asked. I give it a 30% chance Ray cancels at last minute.
The Village Idiot on the yahoo boards is saying Ray is on vacation. Wouldn't be surprised if it was true.
Why? Like myself, didn't you go on the record and call it? I've been projecting it would test the 52 week lows for the past month. I just wish everyone who had bought cheap that first day sold above $2.
It's going to be real interesting to see if Ray gets his bonus this summer. I don't like ambulance chasers, but they would have a case against the BOD if they gave him a bonus.
But NYSE wants fees. It could care less about HDY's livelihood. If it kicks it off NYSE = no fees. I see HDY waiting until last minute to appeal and NYSE taking it.
Yeah, that was a sure thing it was going from 2.20 to sub 1.50 on delisting risk. Not sure it will go sub 1 unless Guinea puts the contract under review.
If anyone cares, the December options were released today. Not a very good value considering how cheap the equity already is and we have no idea on a time frame for when the FM will clear and drilling would begin.
Yeah, with appeal the AGR lawsuit could take a few more years before anyone gets anything wired to their bank accounts (other than the lawyers!).
The DOJ is not facilitating any pulling of contracts. That's not what they do. They'll just ask for a bunch of emails and documentation, say HDY broke the FCPA statutes, and then make up an arbitrary fine amount based on what they believe HDY can pay.
Penny stocks do it all the time. You can either start paying your bills with shares, or find another BlackRock size investor (the amount BR gave, not the quality BR is).
I tried to tell the people that bought below 1.50 to sell above 2. Nothing was going to get worked out before it retested the 52 week lows again (which its going to do). I continue to remain on the sideline until I can revaluate after Q1 report. That will help the market determine what book value truly is after all the cash burn.
"2. AGR will not settle, requiring HDY to dilute in JUNE as HERYACHTSDECK has indicated in a HDY INVESTOR VILLAGE POST."
Who is HERYACTHSDECK? Are you referring to HerYachts2Fish? I can't find that post. And does that person even work at HDY? Because that's just his/her opinion.
I've said HDY is in danger of dilution, but I don't see it happening in June. I see the legal costs for the DOJ/SEC going down somewhat in Q1 UNLESS Ray doesn't know how to engage a law firm properly (possible). HOWEVER, we may get a spike in G&A due to Ray and the BOD taking unnecessary first-class trips to London to mediate with Tullow. Either way, dilution is more likely when things get worked out with Tullow (if they do). You don't want to dilute at these prices. Ray will hold out as long as he can if that's the only thing he's good for.
That would mean Ray would have to earn his salary. He's too busy drafting powerpoint presentations for conferences that add nothing to s/h value.
Just looked up what HDY was paying Deloitte per year. Over $550k/year for services. Is that a freakin' joke? They could have gotten a local CPA firm to do it for 1/3 to half that price. And I bet Ray is paying top dollar for law services. Does it really cost $1M/month to pull records and email/snail mail responses to the DOJ/SEC???????????
Yeah, you think Ray would send out a shareholder update PR. At least try and earn your bonus instead of swindling it out of the rapidly depleting coffers.
I'm beginning to think Ray thinks he's "owed" the high salary and bonus he gets because he's invested personal money into the company. I'll never forget him saying two shareholder meetings ago "I've put a lot of money into this company, almost $1M." Who freaking cares what you put in Ray. You get options. We don't. And no telling how you got that money working for the Russians and other two-bit oil "operations" like Kuwait Oil (based in Houston).
You won't see an IRS audit/investigation. HDY is only generating NOLs and they don't bother auditing NOL years unless they are offsetting future or past positive income years.
I stand corrected. I retract calling Hein a "bum-...." operation. Still wouldn't surprise me if Ray knows a Partner over there and that's why he gave them the work. He'll probably give them the same fees as Deloitte which is ridiculous.
I agree Deloitte resigning has more to do with image. Deloitte did have issues with internal controls over a year ago per that 8-K. That's just unfathomable considering HDY has so little employees.
Not a big deal? Are you joking??? HDY had a Big 4 accounting firm as their auditor and now they have a bum-#$*k CPA firm that is probably run by a pal of Ray's.
Seriously, if Deloitte has a problem with internal controls of a company that practically has zero operations and hardly any employees, THERE IS A MAJOR PROBLEM.
That's pre split. You need to look at the proxy for 2013 which shows total share with options is somewhere in 350k area for Ray
Negative group think? This is ihub. It's 90% rose colored glasses! :)
Even if Guinea were to say the FM isn't appropriate, Tullow has totally FUBAR'd the West Leo schedule. I could see Tullow saying, "we already assigned West Leo, and don't have an available opening until 2015." Thus, I only see HDY recovering to about 3-4. HDY was above $5 when drilling was expected to be imminent.
Gap up any day? What event is going to cause that? I give that almost a Nil possibility in the next 30 days while the possibility of another gap down is very real. The DOJ/SEC has almost a zero chance of being completed in next 30 days and the Tullow debacle is going to drag out at a snail's pace. The risk/reward ratio of buying at $2 is terribly unfavorable.
This stock is completely event driven and TA can't be relied upon with certainty. Guinea could agree with Tullow and/or reopen PSC and this goes to sub 1.25 in a flash.
Somebody mentioned that declaring FM stops the clock on the PSC. This could be a tactic by Tullow to just delay drilling without having the PSC clock continue running.
You honestly think Tullow is on the hook for billions of dollars? Seriously, take off the rose colored glasses. No court of law is going to assess damages on "estimated" oil reserves. And even if they were proven, the damages would be less than $100M (which HDY would only get a fraction of).
Billions? The reserves aren't proven. Tullow would really only be on the hook for their 40% share. I'm sure their risk management and executive team determined an adverse legal outcome really wasn't going to be material monetarily.
I don't see it going up either without "real" news. Today's PR was to be expected although VERY late (seriously Ray, it takes that long????). I'm sure the jump today was overzealous traders thinking the stock was going to double on this PR.
Uhmmm, bribing and money laundering aren't the same thing.
I'm a buyer on the next gap down. Preferably sub-$1.
Ray was probably sucking up to the board to get his next bonus payment in June......
Seriously, I don't know what the F they did. Here's what they should have done.
1. Call Tullow. How can we get you to undo the declaration of force majeure?
2. Call Guinea. What are you thoughts on Tullow's actions? Do you think a FM is legitimate?
3. Call DOJ/SEC - Can you expedite your investigation as its affecting the livelihood of our compnay? (Unlikely they will, but that's when a "campain contribution" to your local congressman would help. Ray should be fired if he doesn't have a relationship already).
4. Slash G&A to bare bones. No bonuses in 2014. No stock options or raises for ANYONE. The BOD gets no salary as its deferred to a future year.
5. PR that HDY is working with all parties to resolve FM as soon as possible and all litigation is frivolous.
What do you mean by "money launderers?" This case of a FCPA violation is in regards to bribes.
I only see a 30% chance of a statement since none came out this morning (after having all weekend).