HYPD was out with news this past Friday. The company has been granted a listing on the American Stock Exchange.
This is great news for investors, but this news doesn’t make it a better company today. However, it does make it a better stock, which can be two different issues.
For example, many of you are familiar with AMW, which traded to $1.80 just after announcing their deal with WalMart last spring. At the time, it was a much better stock than company, and despite obtaining an AMEX listing the company and the stock are in big trouble right now.
BPTR on the other hand is a much better company than stock at this point in time. An AMEX listing would probably help them become a much better stock.
There are some powerful implications in HYPD’s jump to the AMEX. The stock qualifies by Market Capitalization. However, the limited cash on their balance sheet in light of the ambitious plans for West Africa would make it difficult to obtain an AMEX listing.
I believe they must have convinced the AMEX that they are generating signficant revenues from their Louisianna properties. We will see hard numbers from the June quarter.
As you can see from the chart, the market liked the news, and the stock made a nice spike on Friday.
If the company is successful with it’s operations, the AMEX should help enhance shareholder value and improve the scope of the audience. I suspect the company is doing much better with its Lousianna properties than anyone realizes.
I’ll publish a special edition with thoughts and information on the date the stock will begin trading on the AMEX along with the new symbol.
This is a big deal for shareholders. Your comments and questions are welcome.
Any insight on the 7,600 shares traded after-hours Friday at $3.49? More positive reaction to the AMEX listing or something else pending? Also, any further insight as to the timing of drilling in the two West African target locations? Your comments are appreciated. Thank you.
Editor: I don’t know anything about the after hours trade. The stock is behaving nicely right now. I am told the company will be publicly disclosing some timing issues on the West African drilling program soon, but nothing I can share at this time.
I understand that you feel that hypd is a long term play, however, do you anticipate a spike in the price due to index funds needing to purchase this stock? Or maybe there are not that many index funds linked to AMEX.
Editor: I am quite sure there are no index funds who need to purchase the stock. I believe the stock is trading up because the AMEX listing is a sign they are doing very well with their Louisianna properties.
Isn’t the June quarter also the year end for HYPD? When do you expect to see June results in an SEC 10K filing? Would the AMEX listing itself require an SEC filing?
Editor: No doubt, the company will file an 8k on the Amex listing. I expect to see the 10k around the end of September.
I just bought some shares on Friday when the good news came out. Hoping to make some quick profit. I am not sure what day the stock is supposed to start trading. You think sometime next week? When should be a good time to look out for a sell?
Editor: Should be sometime this week. However, great if you get a short term trade, but I have been saying this market is tough for short term trades. I have no idea when you should sell. For me, I would not have bought it for a short term trade as very few stocks are breaking out right now.
I’ve reviewed the AMEX listing requirements and the one HYPD does not meet is the $3 stock requirement. Otherwise it appears that they qualify under 2 of the 4 standards. This indicates to me that they expect the price to be over $3 soon and may be a harbinger of more good news forthcoming. The standards can be found at the amex website. Look under Equities, Listing Process, Listing Standards at the website below. http://www.amex.com
Editor: They qualify under market cap. However, the unwritten rule is that AMEX requires companies that have losses to prove they will be around in 2 years. That’s why I believe they must have convinced AMEX they are generating signficant revenues in Louisianna.
what’s your best estimate for start of drilling off Guinea? any problem with financing?
Editor: I don’t have an estimate at this time. They have said they can self finance a couple of shallow wells out of their cash flow for the US properties. I still believe if they partnered up with a major, the stock would go nuts. That could still be in the cards.
Family Room’s Amittyville Horror was released. A friend of mine went to see it and said it was scary than the first one. I asked him if the theater was crowded and he said it was a descent crowd. I ask him there were any big names starring in the movie. He said that he didn’t recognize any names but that it was still very scary.
Editor: Low budget film, but will make a fortune for the studio. It doesn’t do anything for FMLY’s bottom line at this point, but if there is a sequel they could make some money.
Any idea on when that “special edition” will be out on HYPD’s move to the AMEX?
Editor: Shortly after make the announcement of what the symbol will be and when it will be open for trading. If it doesn’t happen by tomorrow morning, I will not be able to cover it until first thing next week.
If they announced a partnership with Shell for the deeper of the two wells (2 billion barrels), what do you think shareholders will value the company at as it relates to marketcap?
Editor: I have no idea. I believe a deal with a company of the stature of Shell would validate the potential of the concession, and create a market perception that the company is worth a great deal more than where it is trading today. If you want a guess- $5, or a $200 million market valuation.
After four days of good volumn HYPD is again over the 200 day average. There is a lower gap at 2.52 but it may not amount to anything. If this stock can stay above the 200 day keep plugging along I would be happy.
Editor: The 200 dma is $2.64, and the stock closed at $2.94 today, so you should be pleased. The 50 dma is $2.36, so both the short term and the long term picture look very good today.
You mentioned in previous correspondence that the Amittyville Horror film will not make a difference in Family Room’s bottom line. Can you give any details of anticipated revenue for thier 2005 projects? I appreciate your comments.
Editor: In fact, I was wrong on the Amityville issue. FMLY does in fact have a small back end on Amityville. I believe they could make up to another $500k on the film. As far as revs for ’05- I will have to check on that. I have never been too concerned with revs as they produce movies- the issue is having a hit with a big back end residual. I’ll get a piece out with a rev estimate soon.