HYPD was out with news this morning concerning their subsidiary, HYD Resources. This subsidiary is developing some small wells in the Lousiana and owns three drilling rigs which are in high demand.
It seems they have measured the proven reserves in 1.7% of the property they own in the gulf, and as it turns out they have about $3 million worth of oil in this mere fraction of the property.
This news is not the Holy Grail we are all waiting for on their potential multi billion dollar discovery in West Africa, this is another example of news which mitigates the risk of owning the stock. This wells will allow the company to generate cash flow for the first time in its history, therby allowing them to keep moving forward with the West African concession and not raise additional capital in the interim.
Technically, the stock is holding up beautifully. This chart suggests a major event could lead to much higher levels, and the stock is begging to be accumulated.
I put a lot of stuff in this one. You can see the uptrend line which began at the August low. That trend remains intact. Note the blue horizontal support line- there seem to be buyers at that level. I have also included the 50 day (blue) and 200 day (yellow) moving averages. The stock is just below the 50 day, but solidly above the 200 day. It probably wants to drift back above the 50 day right now.
This is a stock that wants to go higher if the company can deliver a major breakthrough. The market has kept it at its current level for four months. If you believe, accumulate.