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Recent postings in the BLOG include commentary on ZAP (OTC BB: ZAPZ) and NetWork Installation (OTC BB: NWKI). The commentary on ZAPZ is particularly important in light of the stock's poor performance after their spectacular announcement. I recommend a stop loss of $2.80 to $2.90 on ZAPZ.  If this stock is going to fall apart, I don't want to be in it.The stock is now positioned smack dab on its trend line. A break much below $2.90 would be bearish. A rebound from these levels would be bullish.  Please visit the BLOG for the current updates, and post any comments or questions.

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HyperDynamics (OTC BB: HYPD) Looking Higher On Results

HYPD looks like it's starting a rebound phase, and the catalyst is coming from left field. Recently I have received a number of comments noting the stock was perking up. Rumors had been circulating that the company was starting to get strong results out of their Louisiana drilling program. Based on Friday's press release, it would seem those rumors had some basis in fact.

I know most of us shareholders have been hanging our hats on the West African property. Much to my surprise, the program they started up in Louisiana is becoming a more immediate source of upside. If the early returns on the reserves in these properties are accurate, this drilling program could provide HYPD with enough capital to start a drilling program in West Africa on its own.

Friday, after the market closed, HYPD announced the company had received an independent study concluding there were 1.47 million barrels of oil in the leases they currently hold. Based on the current $55 per barrel painfully high price of oil, this new study suggests the company could see $80 million in revenues from these leases, less the amount the company will pay to any partners in the drilling program. Wells have been drilled in these leases and are starting to produce now.

The stock is attempting a rebound, and the news out on Friday might keep the stock moving back up the charts. Energy companies are the rage of Wall Street right now, and this couldn't come at a better time as far as the market is concerned.

Those of you who follow HYPD know the market is concerned about a pending excess supply of cheap stock. 6.8 million shares priced at $.80 are now eligible to hit the market under Rule 144. These investors have now been holding their shares for over one year.

A recent check of the SEC filings shows holders have only filed to sell 76,000 shares in 2005. To date, there is no hard evidence many of the financiers of the company have any interest in selling their shares, despite over a triple on the investment. To my way of thinking, the only way you would hold a triple is if you believe the stock is going higher. There is no guarantee we won't see a bunch of filings next week, but so far so good.

I've provided a weekly long term chart. This stock is quite schizophrenic. It's impossible to predict where the stock is going in the short term. On a weekly basis over the longer term, the stock appears to continue in its uptrend, with one blemish in early '05.

Could be a strong week for HYPD with these kinds of hard results. I am informed by a representative of the company to expect the first significant revenues from the Louisiana property to show in the June quarter, which starts in 3 weeks.

Here is the complete text of the news release for your review:
 

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