Lazyeye, you bring up the two critical sides of the investor fence regarding HMGP and the current PPS situation.
One side of the fence is that HMGP is keeping quite about production/results and a gagged TA is to protect it's current business strategy (i.e. new lease development) as well to the need to complete the required re-working on the wells damaged by the recent flooding.
The other side of fence is why does HMGP keep throwing out these PR's that continue to elude to the "upcoming indication" or "forwarded statements" which IMO is creating a high level of doubt or for a better word speculation in the current activity of HMGP ant the PPS.
If the reason for the "quite period on production/results and a gagged TA" is clearly to protect HMGP going forward business strategy and time to repair, then so be it; I can live with that reason and I suspect many other longs can too.
However as time moves forward the number of "Newbie" interest has increased and I suppose based on this increased interest a wide range of unpredictable trading strategies are now being considered and or currently being used day to day trading HMGP. This is very evident by the number of new posters on this board as well as the increase in OT type of discussion that has recently developed.
Clearly opposing forces are at work.
So how does all this play out?
IMO HMGP has again set itself up by indicating in the last PR indicating it will release with one to two weeks results of this re-working of wells.
What does this mean??
Expectations by many to see what is released by HMGP as it relates to this statement and it needs to provide the long needed substance that many investors expect.
In simple terms many nvestors will only allow so much time when this type of communication pattern starts to develop from any company.
Yes HMGP took a huge hit caused by the floods;
Yes HMGP has a business model that is strong and backed up by proven reserves;
Yes HMGP has strong business relationships within the O&G industry;
Yes HMGP takes care of its own and the landowners of these leases;
Yes oil is today >$95 and allows HMGP to bring oil to the market place at a premium >$20 a barrel more than what oil was 6 months;
And yes this all is good for HMGP in the long term
BUT there is now a need for the current
Yes HMGP has again set itself up for an expected update again eluding to production from the reworked wells within a 2 week timetable;
AND
Yes HMGP, IMO it is time to share this news within the time frame indicated based on the specifics released in the 11/01/07 PR.
Otherwise IMO the doubt and speculation involving HMGP, it's current trading pattern, and conviction as a sound longer term investment only gets more difficult.
And thus the unpredictable pattern will most likely remain over the short term
Kels
AI
