HYPD has completely fallen apart over the last couple of weeks, and the selling pressure and price drop has continued over the past two days.
At this point in time, I have no fundamental explanation for the drop. To my knowledge, nothing has changed at the company and they are moving forward on several fronts to let investors know how and when they will begin the process of drilling their West African concession.
I am hoping to get some information directly from the company for this weekend’s edition, but at this time there is nothing to report.
In lieu of having nothing to report on the corporate side, let’s take a look at the technical picture:
Here’s a very long term look at the chart going back to the summer of ’03 when this stock started its 1.5 year move up the charts.
As usual, I have included both support/resistance and a trendline. Technically, there is nothing positive in this chart right now. As you can see, the long term trend line, which was breeched a couple of days ago, was broken decisevely to the downside. The stock paused for a couple of days right at Fibonacc’s 38.2% retracement level, and then disintigrated.
I am very intrigued with the possibility of an exciting buying opportunity, but I believe caution is warranted at this time. Clearly, there is panic selling, and I would choose to wait until the panic is over before considering a buy.
However, if the stock does drop to Fibonacci’s 61.8% retracement of $1.60 and holds that level, I might consider buying to take advantage of this weakness once we have confirmation that nothing has changed at the company.
If you are a long term investor and just holding a position waiting for the Guinea concession to be developed, all this drama is nothing but a gut check. They are either going to develop the concession or they aren’t, and no one knows the final outcome at this point in time.
Look for an update in a regular edition once I have some information.