HYPD Sell Off- Opportunity

HYPD is selling off inexplicably today along with a number of other small and microcap stocks. There really isn’t a lot of volume associated with the sell off. I am guessing a number of trader types had a $3 mental stop loss. When the stock traded below that level, it just sold off.

Problem or opportunity? There are a couple of interesting dynamics in the chart. First, here’s a very long term look at the stock:

The trend line you see actually goes all the way back to the mid summer of ’03. That’s an 18 month trendline, and the stock has not broken below it. Long term, this appears to be an excellent buying opportunity.

Here’s a more midterm look at the stock, going back to the big gap in October:

Note the gap that was created back in October when the company announced it the results from it’s core drilling program off he coast of West Africa. The gap is depicted between the two horizontal blue lines.

That gap has been acting like a vacuum, trying to suck the stock price back in. After four months the stock appears to finally be coming back and “filling the gap”.

Most of the time, once the gap is filled, the stock turns around and heads back up.

MarketByte LLC, the parent company of the OTC Journal has been holding a position in HYPD for the long term. From time to time we have sold some to cover our costs, but have maintained a core position. We are keeping our fingers crossed for a deal with a major developer just like you are.

Today, we bought 10,000 shares for the corporate account at $2.60, bringing our total current position to 38,280 shares. Just because I bought itdoesn’t mean it can’t continue to go down quite easily. I just felt it was a good opportunity to buy some back that had been sold at higher levels. I might buy or sell this stock at any time at my discretion.

To my knowledge, nothing has changed but the price.

I believe it is going to fill last October’s gap, trade sideways for a while and head back up. We’ll see what happens.

12 thoughts on “HYPD Sell Off- Opportunity

  1. Thanks for the great call on HYPD. I have been waiting for the break fof $3, I think anything under 3 is cheap for the potencial of the stock. OTC Have you looked at profiling TLPE.

     

    Editor: Agreed- Great buying opportunity. Don’t follow TLPE.

  2. I think you are looking at hypd in a very favorable way, the stock just baffles me but i still hold it and I think long term is the key to this one. And I’ve been accumulating tlpe for about a year now and they just keep growing.

     

    Editor: While I agree with your long term view, I am not baffled at all. I believe owning this stock is all about developing the W. African property. We have a lot of data suggesting there is potential, but everyone knows this company cannot develop the concession on its own. They need a deep pockets partner. The recent swoon in the stock is a signal to the company that the market is getting tired of waiting information about how this concession will be developed at all. I believe if they announce a partner, the stock will go crazy. Typically, this happens just after everybody loses patience and gives up.

  3. Thanks for disclosing MarketByte’s position in HYPD. Isn’t that something that should be done with every edition?

     

    Editor: You are welcome. We don’t disclose our position in every edition for several reasons. For one thing, it would be very time consuming to do it. However, more importantly we believe it could be misleading to people to use our trading actions as a basis for your decisions. For example, if we receive shares as part of our compensation, it is a taxable event. We have to sell 40% of the shares just to pay the taxes. This has to happen before we get any money for the company. If we publish every time we trade to pay taxes, people might interpret it to me we don’t believe in the idea. If we didn’t believe the idea had merit, we wouldn’t be publishing in the first place.

  4. I, too, was surprised by the sudden dump. Some thot it might have had to do with the speculator-boring but investor-reaffirming conference call…speculator dumped. I had a bid in @2.90 that of course filled, and likewise bought more @2.60. Should even a whiff of a partnership with any known energy company get out, and ANY entry price since the start of the company will be cheap. I particularly like the fact that they are developing income streams that will help prevent dilution. jt

     

    Editor: I agree with your assessment. I am going to look at the current 144 filings. Seems like it’s been about a year since they did their big capital raise, so there could be some supply coming from participants in the raise.

  5. Have you seen or heard any piece of bad news for HYPD? I have not. It is just more of the same, good news. The stock has dropped but the volume has been light. I look at this current price as a buying opportunity. I guess I am waiting for the next piece of good news. What’s next ?

     

    Editor: I view the recent price drop as an opportunity because nothing has changed with the company. I still believe they need a deal with a major to get the stock moving up, and the longer it takes, the more investors will lose patience.

  6. anything on HYPD ? Why is it taking so long to pull back above $3.00 ?

     

    Editor: No one from the company has contact me with any sort of update recently. I know they are extremely upbeat.

  7. Anything new that you’re aware of on HYPD? This grind lower seems to be well overdone at this point……

     

    Editor: Check today’s BLOG entry please.

  8. Anything new on HYPD that you’re aware of? This grind lower seems to be well overdone……

     

    Editor: Check today’s BLOG entry

  9. dear sir,just wondering off the record what price do you see happening this next few months i guess im looking for a ray of hope . S poke to cris watts at hypd he said get ready and hold on for good things

     

    Editor: If you can tell me how many of the 6.8 million shares that are now eligible to be free trading are going to be sold, I could give you some idea. If you can tell me if the company is going to get something going off the coast of W Africa in the next few months I could give you some idea. Since no one can answer either of those questions, we’re just going to have to wait and see. It’s tough to call where you’ll be in a few months when you are tying to develop a multi year project. I’m hanging on to the company’s  shares for the time being, but anything could change. By the way, if I respond in the BLOG, it is hardly off the record.

  10. DEAR SIR. I thank you for youre comments sorry about the off the record comments .youre knowledge is wonderful and somtimes a comfort and thats nice to have when youre invested deep. also if africa is a hit would major players want to buy out the company ? THEN WHAT WOULD STOCK PRICES LOOK LIKE ? thankyou

     

    Editor: That’s is a very tough call. I know the company believes they have billion dollar potential in the concession. I know one of the board members used to be on the board of Shell oil, and has invested in the company. There simply isn’t enough information yet to give you an intelligent answer to your valuation question. If the market already knew, it would probably be priced into the stock.

  11. dear sir; with oil on the rise and could go higher if hypd dosent act soon will they miss a great chance mega profit. secondly any truth that hypd is trying to sell a small part of the africa consesion to gain revenue [any nibbels] ? THANK YOU FOR ALL YOU DO .sincerly ken

     

    Editor: I do hope they act soon, but I don’t run the company, and I don’t know exactly what the hold up is.

  12. dear sir where do i look for youre hypd blog for this month thank you ken

     

    Editor: I haven’t done a BLOG on HYPD this month, but will do one when circumstances warrant it.