28 Comments

1. Well,Where do you see them headed now? Are they dead or is there still a chance to revive the patient.

   Editor: I haven’t looked at this one in a long time, but I wouldn’t bother unless they start drilling in Africa. It’s been years, and years, and years. Nice to see the stock behaving a bit better for the shareholders. 

   Comment by Michael — 4/25/2008 @ 11:49 pm

2. what do you guys say now………if you don’t like the stock, why even waste your time and our time. Its a speculative deal……….and if it pans out, its a winner……if not its a loser.

   Editor: If subscribers are asking for my take on the situation, it’s not a waste of time. If no one had asked via email, I wouldn’t have bothered with it. 

   Comment by dkikuchi — 6/8/2007 @ 10:39 pm

3. Is it time to get in now or should I wait until HDY is above $4?

   Editor: Get it now if you want, or wait until its below $2, or above $4. If it’s going to $20, what’s the difference. My suspicions are this will take a while. However, it seems as if they might be making some real progress. 

   Comment by BigD — 9/19/2006 @ 9:08 am

4. Finally. Progress. At least some … now what?

   Editor: See next BLOG for my thoughts. 

   Comment by The Swede — 9/19/2006 @ 8:55 am

5. 23 COMMENTS—THE ONLY THING I FEEL AFTER READING THEM IS — (( THANK GOD )) I SOLD HDY !!

   Editor: Who knows- maybe they will still land the deal. Frankly, after all this time I’m impressed the stock has hung in there over $2, especially considering the financing. If they finally land the deal, we can always go back in. We’ll just pay a little more. 

   Comment by WARREN — 9/6/2006 @ 8:49 am

6. Any news on the progress at HDY? Is it as bad as speculated? Any news on drilling permits? Have they managed the payments of the load so far? I must admit that I got a bit too emotionell with this stock and also managed to trade it well in the past. I do not have much hope for it right now, but I can not bear selling it and see them get the permit the week after that. Really couldn’t forget myself if that happened, even if it is highly unlikely.

   Editor: I have thrown in the towel. The way I see it, they have had many months to ink this deal. They did a deal with the worst fund on the planet to get $6 million, which represents massive supply on a go forward basis. However, if you sell, they will get the deal a week later- that’s the way the market works. The way I figure it, at this point I would rather be out wishing I was in, than in wishing I was out. Ideas are plentiful, capital is scarce. If you’re out and they get the permits, it will still be a muliti year project, with plenty of opportunities to own the stock a little bit higher. 

   Comment by The Swede — 8/28/2006 @ 4:10 am

7. Any comments on Kent’s pay raise? Any thoughts in general regarding HDY? Thanks.

   Editor: I didn’t catch the pay raise, but I think that’s hysterical. On what basis?-performance? - or, does he deserve the raise because he went out and did such a brilliant job raising a very toxic $6 million. For me, nothing has changed. They don’t have the deal in Guinea, and the one they bought second hand expires this year. I don’t own the stock. If they get the deal, I will look at it again. Sure, I will pay more for the stock, but if it is going to be a long term success going to much higher levels, I’m sure there will still be plenty of upside. In the interim consider me from Missouri- the “Show Me” state. 

   Comment by Anonymous — 8/22/2006 @ 10:39 am

8. Since 6/29 HYPD has risen about 10%.
   I don’t know if it can hold here…support maybe. One question I have….What do you know about any current naked short selling and the supposed lawsuit being brought by HYPD against the sellers?

   Editor: I believe they are part of a larger class action suit being brought by a famous Texas based law firm. They are suing the entire system- nasd, DTC, SEC, etc for allowing the naked short selling to go on. I don’t believe it will have any potential benefit for the company for many years. 

   Comment by tw — 8/8/2006 @ 9:02 am

9. Have you started to buy any of this stock now?

    

   Editor: No- the only thing that would get me to look at this stock again is an announcement that they have gotten a signed agreement and the drilling permits with the Guinea gov’t. No doubt, if I wait until after the fact, the stock will have moved up without me. However, since the event would be a multi year project, I’m sure there will be plenty of other entry opportunities.

   Comment by Dee — 7/25/2006 @ 1:47 pm

10. I spoke to Chris Watts today. first, the initial posting under his name on the site, was not actually done by him. it was, however, a slightly altered version of an email conversation that he was a party to. He said that the information in the posting was for the most part accurate. I asked about the timing of the financing and the assertion that the funds were not needed, but were being raised now for future drilling. I suggested that financing at these levels with no news was sending a mixed message to the market place. he couldn’t comment on the timing or decision making behind the financing, but reiterated that it was not motivated by a shortage of cash. finally, we spoke about the possibility of the government allowing the current agreement to expire. He felt (as do I) that the company would have legal recourse against Guinea in this event due to failure to act in good faith (through the WTO or others). the government understands that they could tie up the rights for years. finally, student riotting in Guinea has been one of the distractions slowing things down, but as usual he was optimistic that they were very close to an agreement

     

    Editor: Thank you for the contribution. Mr Watts (any of the three that work at the company) is welcome to post his comments in this forum anytime of their choosing.

    Comment by Gordon — 7/10/2006 @ 1:09 pm

11. You bring up the point about Kent failing in a few other business ventures before this one (systems integrator and ISP facility). I think it is important to note that the relationship Guinea (or USOil if you like) was with SCS, and existed before SCS was acquired by HDY. SCS (along w/ Poling) is calling the shots, and their background is immaculate.

     

    Editor: If that’s the case, perhaps SCS or Poling should be the ones going over the Guinea trying to come back with a signed agreement. It seems to me the whole future of the company revolves around getting the deal w/Guinea. Every press release I have read states Watts is the one going to Guinea trying to get the agreement signed.

    Comment by Anonymous — 7/10/2006 @ 7:48 am

12. Does anyone know anything about US Oil? Dinesh Shukla and the owner of US Oil? If a new agreement is signed then what will happen to HDY and US Oil agreement? I thought HDY was also in a lawsuit with them. What is the lawsuit about specifically? I’m mostly worried that will HDY have to worry about them? Who ever brought up the point that US Oil founder is a flower salesmen, wow that is stunning a flower sales man gets a PSA of this size, something is not right!

     

    Editor: You only need to post your question once. It does not appear until I respond. I can’t confirm or deny any information about any flower salesman. HDY is working on a new agreement directly with the Guinea Gov’t. Right now, they have been assigned the agreement between Guinea and US Oil, which expires later this year. If they get a new agreement and the drilling permits, this company has a real shot. If they don’t, this deal is dead. I am not sure what law suit you allude to. The only law suit I know about is the suit between HDY and the financiers of the Louisianna natural gas wells. The financiers are suing HDY, claiming the inflated the potential value of the wells and funnelled money out of the wells for use in the Guinea development.

    Comment by charles — 7/9/2006 @ 7:54 pm

13. I agree with some of what you say but where we differ is the ability of Cornell to short the stock. You assume that even though it is explicitly prohibited in the loan agreements, they are going to do it anyway. SEC scrutiny will keep them from shorting. AND I just don’t see HDY defaulting under any possible scenario other than one where Guinea revokes all of HDY’s rights and HDY loses in arbitration. Until BOTH of those happen the upside is too great for investors like me to allow that to happen. In case you haven’t noticed HDY is building a pretty impressive and loyal shareholder base with some BIG NAME investors. This company will NEVER go into default as long as the Guinea rights are even a possibility. HDY only borrowed $6 million dollars. That is peanuts for a concession which could be worth billions. I suggest you look at the amounts that have recently been paid for other exploration acreage offshore West Africa. This concession is too value for shareholders to allow this company to default. If necessary, the capital to sustain it will be there until the bitter end and it won’t be hard to access. This opportunity is unlike others you have been involved in. You need to realize that before you start to compare it to other “similar” situations. None of the other companies was sitting on what could be billions of barrels of oil. Never forget that.

     

    Editor: I guess it’s just a question of definition. You are thinking of a short sale as one borrowing the stock, and selling it betting it will go down. This situation is simply a sale when you deliver the shares to cover your short position. It is perfectly legal for Cornell to sell all the shares they want over $2, and then demand delivery under the $2 conversion that day, then deliver the shares to their brokerage account. Technically, this is not a short sale. It is common practice in convertible securities. They will never go at risk. Every share they convert will already be sold. The benefit to HDY- everytime they do it the debt is reduced.

     

    As far as the other issues go, those issues are the only reason I am still going to follow this one. You can be as optimistic as you like, but don’t forget the Guinea gov’t has been stalling for months now, and the agreement with US Oil expires this year. If, as you say, there are billions of dollars at stake, then as HDY proves it can get to that oil, there will be plenty of opportunities to buy the stock later. If it’s going to $50, who cares if you buy it at $2 or $3 or even $5. In the meantime, my only risk is the time I will take to watch for the company to deliver something tangible.

    Comment by BigD — 7/7/2006 @ 8:45 am

14. Since you asked nicely I looked up the production data. Trendsetter(HDY’s wholly owned subsidiary) produced 2191 bbls of oil in May of 2006 up from 1395 bbls of oil in April of 2006. June is not yet available. That is not nearly as much as they onced hoped but it is enough to pay a few bills and it is increasing. Now I will ask you one question. You said the prohibition against Cornell shorting is not worth the paper it is written on. This prohibition is part of the financing agreement between HDY and Cornell so it is legally enforceable.. The short interest on this stock is relatively small so a large short position would stick out like a sore thumb. In addition Cornell is in the midst of an investigaion by SEC. I don’t think Cornell is going to be ignoring contract provisions while the SEC is pounding on their door. So why do you say the prohibition against shorting is not worth the paper it is written on? Like I said I DON’T like Cornell. But I do believe HDY did everything in its power to protect itself and Cornell is not in a position to play games right now. Thanks for being a little more civil. I will try to do the same. Hopefully we can learn something from each other and everyone can make money on HDY even if we do it in different ways.

     

    Editor: I have seen this scene played out many times with many Cornell financings. Cornell is prohibited from shorting enough to cause a death spiral in the early going by the $2 conversion floor. However, there is nothing that prevents Cornell from selling all they want when the stock is trading above $2. They are prevented from owning more than 4.9% of the company at anyone time, but once they sell, they don’t own it. They will short sell before putting in for a conversion. Based on the terms of the agreement, this means they can sell about 2.5 million shares per day if they so choose. HDY cannot legally prevent them from doing this, even if they are not in default on the payment. Since they already have a 10% return on their books just from the fees they charge for doing the loan, if they can get another 10% out of the market it’s a home run. They will view their big upside available through the warrants they hold, which have no risk.

     

    The more draconian viewpoint occurs if HDY cannot continue making monthly payments. If that happens, then the debt instrument morphs into a true death spiral, wherein Cornell’s conversion price is 70% of the market, no matter how low the market goes. They are then in a position to actually make more money if it comes to that.

     

    The ideal scenario for Cornell is to make 20% to 30% on the note, and a killing on the warrants. Secondarily, if HDY pays say 70% of the note back, and then goes into default, Cornell will probably have recouped all or nearly all their money and will not hestitate to cause a “legal” death spiral.

     

    I have been doing this for over 20 years, and have seen Cornell destroy many stocks. Anecdotally, I am also hearing they are under severe scrutiny from the SEC, so perhaps if you want to do business with a benevolent Cornell, now would be the time.

     

    Simply stated, if shares of HDY can trade much better, the market will pay off HDY’s debt. In my opinion, the process of doing that will prevent the stock from having much upside above $2. If you want to accumulate a huge position for the very long term, this is your window of opportunity.

    Comment by BigD — 7/6/2006 @ 7:39 pm

15. Since you did not disagree with my assertion that this is NOT true death spiral financing, I assume you agree. Fixed conversion price except upon default means this IS NOT death spiral financing and there is a prohibition against Cornell shorting. Did you conveniently miss that? Read it and weep. With the scrutiny Cornell is presently under I don’t think they will be violating the covenant that prohibits them from shorting. Those two things make this pretty solid financing. I don’t like the creditor but they can do little harm to HDY with a fixed conversion price AND a prohibition on shorting. As far as you assertion that the price will not go much above $2 you are right. Up until the day the PSA is signed. After that it will never see $2 again. I don’t really care what it does up to that point. With a 19.1 million line of credit they have several years to get this deal done but I expect it to happen in weeks. As far as the Louisiana properties go they are producing better and it is not insider information. Those that have a knowledge of the oil and gas industry(yourself excluded) know that a producer must report its production data to the great State of Louisiana on a monthly basis. This information then becomes public on a Louisiana Department of Natural Resources website called SONRIS. I suggest you learn how to use it. Production is up. Quit being lazy and go look it up yourself if you don’t believe me. Revenues are not up to where they originally thought but they are up enough to pay a few bills. As far as the Louisiana lawsuit goes it is a joke. Every company has its lawsuits. HDY offered to buy back ALL the working interest they sold at FULL price. If you had attended the shareholders meeting you would have known that. The people suing have lost nothing and had a chance to recoup their entire investment if they so wished. They elected to sue instead. This lawsuit is a joke and is totally without merit. As far as your bashing of this management goes I can’t tell you how unprofessional I think it is to call them bozo’s. You run your business like that and then call others bozos? And I don’t really care what this management team has done in the past. I have personally met all of them and have faith in what they are trying to accomplish. Whether they will succeed or not it still up in the air but a true professional would a least show them they respect they deserve.

     

    Editor: So I guess we are in agreement on one point- if they get the deal signed in Africa, and they get the drilling permits for the first test wells, I believe investors do have a shot. In my view, if and when that happens, everything will change.

     

    The prohibition isn’t worth the paper it’s on. In reality, Cornell can sell all it wants over $2 per share as long as they never actually own more than 4.9%. They will never own any. They will sell it, then put in for their conversion to cover their short. Once the registration statement is effective, the stock will never see over $2.25 unless they ink the deal.

     

    You are also right about the Louisianna data. I don’t know how to pull it up. Since the purpose of this BLOG is to provide a forum to share opinions and ideas, perhaps you would could make a contribution and pull the data for everyone. Since you are willing to provide your commentary, some facts to back it up would be helpful.

     

    I look forward to reviewing the data and your interpretation of what it means.

     

    Comment by BigD — 7/5/2006 @ 8:17 pm

16. That is the most riduculous response I have ever heard in my life. All financing has serious ramifications upon default where the creditor gets to exert more control. Death spiral is NOT dependent upon default. Real Death spiral financing has a conversion price based upon market value BEFORE default ever occurs AND there is NO prohibition against shorting by the creditor. What you have with Cornell is a run of the mill convertible debenture based on a fixed conversion price just like thousands of other companies have. Some how I think you know all of this and are trying your best to deceive people. I suspect your motives. If I’m wrong, you really need to read up on death spiral financing so you will have a better handle on how it works. As far as money to pay Cornell goes the Louisiana properites are producing much better now and production continues to increase. But more importantly HDY has a $19.1 million line of credit remaining it can draw on from Dutchess. All the Dutchess debentures have been converted to stock and Dutchess has converted its warrants to stock as well. Dutchess now has well over 2,000,000 shares of HDY stock. Not sure if they still own all that stock but they definitely have an interest in the seeing the share price go up, not down. Looks to me like HDY has tons of liquidity between their own Louisana properties and the Dutchess lind of credit so default is not even an issue to worry about for YEARS. Seems to me you should have known all that as well unless you are doing very little analysis of the companies you follow.

     

    Editor: Nice thoughts- if you live in fantasy land. Would you care for some undisputed facts?: 1. The Lousianna properties were touted to generate $1 million per month in revs- the company achieved a whopping $134k in fiscal Q3. The Louisianna group has filed a law suit against HDY and its management team alleging they inflated the potential production and funnelled money out of the Lousianna joint venture to fund its efforts in Africa. 2. There has been no public disclosure of any kind forecasting any improvement in Louisianna. If you have information of improvement there, it would be characterized as insider information. If it’s public information, show us all. 3. The terms of the debenture allow for Cornell to convert all the stock they want at $2 as long as they don’t own more than 4.9% of the company. They won’t own any of the company as they will be selling before they convert, and use the conversion to cover their short. Once the S1 is effective, this is perfectly legal.

     

    It is true they can use the Dutchess equity line to make the payments. My expectations are that the stock can hold its own for a number of months. However, everytime it pokes its nose much above $2, you will have supply coming from Cornell who will be anxious to limit its exposure, and the Dutchess line, which is where the company will have to go to make the Cornell payments. Taken as a whole, not a  bright technical picture for shareholders.

     

    However, the theme still remains the same. If they can get the new deal done, get the drilling permits, and get a deep pockets partner to back them, the stock could easily trade enough volume to over come the supply.

     

    On the other hand here’s another fact that is undisputed- 8 years ago this management team was a “business systems integrator”. Guess what happened- failure. 5 years ago they were an internt co-location facility- guess what happened? - failure. Now they are an oil and gas exploration company. What’s the best predictor of future performance?- You got it - past performance. What’s next? - Biotech?

     

    I really do hope they pull a rabbit out of their hat. However, based on the indisupted FACTS, not blind suppositions, I am simply choosing to stay on the sidelines and wait for them to show me something besides another round of dillutive financing with no supporting corporate developments.

     

    If you want to share any accurate facts, you are welcome. Simply telling me I don’t know what I’m doing is just a waste of both of our time.  

    Comment by BigD — 7/3/2006 @ 9:40 am

17. You obviously do not even know what death spiral financing is. This deal has a FIXED conversion price for the debentures. Please read the loan documents before you make a complete fool of yourself.

     

    Editor: I might not call every stock right, but I KNOW what a death spiral is. Here is the language directly from the 8K SEC filing describing the debenture:

     

    “ If  an  Event of Default occurs (after the expiration of any
    applicable  cure  period  and remains uncured for ten (10) days after the Holder
    sends  notice  of  such Event of Default to the Obligor, the Holder may elect to
    switch the Fixed Conversion Price to the Default Conversion Price.  The “Default
                                                                             ——-
    Conversion  Price”  shall  mean the lesser of (a) the Fixed Conversion Price, or
    —————–
    (b) seventy percent (70%) of the lowest Closing Bid Price of the Common Stock as
    quoted  by  Bloomberg,  LP  during  the  fifteen  (15)  trading days immediately
    preceding  the Conversion Date.”

     

     

    So- here’s the facts and you would do well to get them straight: If they don’t default on their monthly payment, the conversion price is $2- acting as a governor on your upside. If they do default- it’s a 30% discount to the market no matter how long the market goes. If the company runs out of the 9 million shares it has remaining it can issue, they have very limited time to get shareholder approval to raise the authorized without severe penalties.

     

    The only hope for shareholders here- if the stock is able to get so much volume it blows away the number of shares Cornell will be selling above $2.

     

    Now, perhaps you would care to enlighten everyone about where they are going to get the money to continue to make the payments indefinately. They don’t generate any revenues, and don’t appear to be in a position to generate any revenues in the forseeable future. The one hope they had was the Louisanna properties, and they screwed that up and are in a law suit with the financiers. It sure seems a pretty bleak picture to me.

     

    And, in case you didn’t notice, the registration statement has already been filed.

    Comment by BigD — 7/2/2006 @ 8:23 pm

18. Just to show the imcompetnce of the these bozos, above, you have the IR guy claiming there is a multi million dollar asset in Guinea when NO PRODUCTIVE WELLS HAVE EVER BEEN DRILLED. Same BS came out about La and that was a dustbowl scam that is going to end them up in hot water before it’s over. These guys are jokes.

     

    Editor: Moreover, they Guinea government formally denied them the drilling permits based on the “deal” they bought from US Oil. Do you know the term of that “deal” expires this year?

    Comment by joeboo — 7/2/2006 @ 9:09 am

19. The simple fact of the matter is that HDY is a failed technology company that never made a profit, whose stock was trading in the pennies. After negotiating with a flower company owner in the city of Houston, who in some unexplained manner, had arranged for himself to obtain a psa for offshore oil rights of the country of Guinea, HDY decided to, overnight, become an “oil company”. I am not making this up. After repeated attempts at arranging the country of Guinea to give HDY permission to drill, one has to come to the opinion that Guinea has other plans. Oil rights are a West African country’s dominant asset in this day and age. So why would a country give those extremely valuable rights, to a company that has no oil history, no cash to speak of, and has not made a profit in a decade? Obviously, they aren’t. For HDY to say that the financing they recently finished is not about self preservation is a tad untrue. The company is spending money at an ever quickening pace. Their adventure in Louisiana, buying or leasing oil wells discarded by others, turned into a complete disaster. Nepotism is rampant, in that the ceo hired his brother, to arrange favorable articles to be circulated in the press, by giving those internet sites free HDY shares. This pumping in internet online websites did increase the share price, but the utter failure of the company in Guinea has finally disillusioned even their most ardent fans. And now the ceo has his brother’s son at investor relations, even though he has zero background in this field. A real family affair. And a complete failure. If HDY wants Africa and the investment community to take them serious, they must act serious. No more pump p.r releases. A few simple answers. Why has it taken years for this deal? What exactly does Guinea want? And who are some of the “oil interest” that supposedly is just waiting for HDY to get the psa signed? These are a few basic questions that Hdy is incapable, or hesitant, to answer.

     

    Editor: I’ll expand on the history a bit. The first iteration of Hyperdynamics was a business systems integrator- outcome- failure. The second iteration of HDY was as a co location internet ISP facility- guess the outcome- failure. It’s noteworthy that the company tends to “morph” into the hot Wall Street trend, raise a bunch of money- fritter it away, and morp into the next Wall Street darling.

     

    I really was hoping the third time around would be the charm. Perhaps this cat has nine lives. We’ll see. After all these years, the hard fact is that the current managment team has never achieved anything commercially successful. That having been said- if they do get the Guinea drilling permits, I would certainly consider going back in.

    Comment by rosco — 7/1/2006 @ 3:39 am

20. I have to laugh at people who insinuate that Cornell will make HDY fail or want them to fail. The way for Cornell to make money is for HDY to succeed. Cornell will be a shareholder and a debtholder. The last thing Cornell wants is to have to slug it out in bankruptcy court fighting to get their original investment back along with dozens of other creditors. Cornell will not cause HDY to fail and they will not contribute to HDY’s failure. Only other forces can do that. Cornell gets a bad reputation because they invest in high risk companies that sometime go under but ALWAYS REMEMBER THIS. The big bucks come to Cornell when the companies they invest in succeed and there is NOTHING they would rather see than HDY getting the PSA and making a fortune in Guinea. They will do nothing to keep that from happening. That is what we should all remember including those that are leary of Cornell or those that claim Cornell is evil. Cornell is just out to make money like the rest of us. It is called capitalism. I see them as neither good or evil. They are a creditor and a potential shareholder. Nothing more.

     

    Editor: Wrong, wrong, wrong, and wrong. Cornell doesn’t give a rats behind about success or failure. Sure if the company happens to hit it, their $2 conversion price will be worth a huge return. However, this deal is a death spiral structure if they can’t keep the payments current. As the company stands today, they have no revenues from which to make their monthly payment. Therefore, the money has to come from either the money they just borrowed, or some other source. The moment they are challenged on a payment- voila- convertible feature with no floor. If you know anything about the microcap world, you would know this financier has a reputation for being ruthless on the sell side once they get into a floorless convertible.

     

    Now, I don’t know what is going to happen for sure. But, in my view, unless they deliver the “big deal”, this stock is going to get killed. It doesn’t mean the company will go down, just the stock price. And, even if they manage to make the payments, without huge volume to eat it up, Cornell’s debt conversion will act as a “governor” on the stock price much above $2.

     

    That’s just my opinion, and it could easily be wrong. Again- I hope I am wrong. However, I would rather be out wishing I was in, then in wishing I was out. Go ahead and take your chances. I can always get back in.

     

    Here’s one last thought- if this was such a good deal and such a great event for shareholders- why didn’t HDY put out a press release with the great news? They don’t seem to put mind putting out a press release everytime the CEO goes to Africa. Consider that one.

    Comment by BigD — 6/30/2006 @ 7:10 pm

21. The best advice came from a person who used to post on the HDY Yahoo board..” Don’t get involved with the company and it’s workers. Get your facts directly from the company SEC filings.” There is no need to go to football games with company CEO’s or call the company IR everytime you get worried….They can’t, or shouldn’t be giving you insider info in any case. I agree with you when you say this stock seems to be having a cult following. It’s a pity that some have chosen to cloud their business judgement by falling in love with yhis stock. Whether oil really exists or not, this stock is poised to rise a few dollars upon PSA news. As you said , if things go as planned for them, there is plen…nty of time to get in. Whatever happens, I fell positive HDY will get a piece of the action. Maybe a small piece..but a piece. -John Abraham

     

    Editor: If they do, and they become this giant “long term success” they claim they will be, there will be plenty of time to get in.

    Comment by john abraham khan — 6/30/2006 @ 10:54 am

22. Thank you Chris! I’m a longtime shareholder. Your responce is worth another 5k. I hope you and your family have a great 4th of July weekend. - hyperdyper

     

    Editor: Good luck with it.

    Comment by Paul Salkaln — 6/30/2006 @ 8:37 am

23. Should have left your last sentence out of this last blog, you know the one that asks for comments. The truth really does hurt, and I feel the same as you, this company is for the dogs.

     

    Editor: As it stands today, yes. The recent financing was the “tipping point” for my money. However, let’s keep an open mind and see if they can turn it around.

    Comment by martin kraslen — 6/30/2006 @ 7:33 am

24. Cornell is a disaster for shareholders. Over at SPEX we call them Cornhole Partners because that is what the stock holders get. They have a SEDA over there. Very bad scene. Today was a real down day. Looks as if SPEX will also enter a death spiral, although they do have the Infospherix division that generates some cash. They may yet avoid totally toxic financing which they try to get the diabetes trial up and done. Too bad for HDY. So much potential, but, as I said in an earlier post, nothing gets done in Africa without big bribes, and I mean big bribes when there are millions at stake. So, no surprise to me that couldn’t get it done. Maybe the six million is to pay the bribes? Possibility. BD

     

    Editor: Thank you for your contribution. This has been my experience with companies that do financings with Cornell as well.

    Comment by Biodigger — 6/29/2006 @ 9:47 pm

25. Is it possible that the financing with Cornell was intended to replace the previous financing with your acquaintances at Duchess? Your disclaimer should have repeated the following for your readers who trust your opinions of HDY (formerly your clients as well now being described as bozo’s) The Trustee of the MarketByte LLC Defined Benefit and Trust (“the MarketByte Pension Plan”) has invested approximately $140,0000 in Dutchess Private Equities II LP (“the Dutchess Limited Partnership”), a limited partnership in which the MarketByte Pension Plan is a limited partner. No one associated with the MarketByte Pension Plan has any knowledge, information, or control as to any past, present, or future investment activities of the Dutchess Limited Partnership. The Dutchess Limited Partnership is one of two hedge funds managed by Dutchess Advisors. Dutchess Advisors periodically refers companies to MarketByte LLC for possible coverage by one of the MarketByte LLC publications, which publications include The OTCJournal.com Newsletter. Dutchess Advisors may or may not own shares in the companies that it so refers to MarketByte. MarketByte has no information (outside of information readily accessible to the general public such as SEC filings) as to whether Dutchess Advisors owns any shares in the companies that it refers to MarketByte LLC. The above relationships should be viewed as a potential and/or actual conflict of interest by shareholders and prospective shareholders of MarketByte LLC client companies.

     

    Editor: Thank you for your contribution. I believe you are wrong- it is not a factor in my viewpoint. I would stick with it if I believed investors could make money. Returns are returns, regardless of who financed the company. However, it is good to point this out so people can make up their own mind. On the plus side for HDY shareholders, there are many rumors circulating that Cornell is under tremendous regulatory scrutiny for illegal shorting to artificially force prices down on stocks to enhance profits. With all the scrutiny, perhaps they have suddenly turned into “nice guys”.

    Comment by anonymous — 6/29/2006 @ 7:22 pm

26. Dear OTC Journal: I appreciate that you can bring new ideas to your readership. Some have panned out and others have not. I know that anyonr that took your advice on HDY and has stayed in will be rewarded in the near future. Although you have done your homework in the past on HDY, I know that you have only interpreted or spun the press releases lately. Why don’t you call HDY directly and ask some questions? HDY had a sweet deal with the previous PSA with Guinea. HDY could enforce that PSA at any time. They chose not to, because they structured a new deal. I hear the new PSA is even better. The mgmt at HDY would rather get it right for the long term, rather than rush something quickly into the market. This is a benefit to the stockholders. I look at the financing quite differently than you do. I see a larger credit line that can be tapped immediately once the new PSA is ratified and signed by the President of Guinea. HDY can move with or without the help of a large oil company. Think about it, HDY is sitting on potentially the largest private oil field in the world. I don’t worry about getting the deal done. HDY will get the deal done. It is in the best interest for the country of Guinea and the USA. Please go back and review the press release from May 4th. The USA ambassador pledged US support for security and stability. Guinea has also committed to the project. Please tell your readership to be a little more patient on this company. They will eventually deliver and when they do, you will all be glad that you stayed in on this one.

     

    Editor: Perhaps it will turn out so. That’s the other side of the coin, and investors are entitled to that point of view. Thank you for your contribution. However, you could have contributed your thoughts when, in the past, I observed the longer this takes, the less likely it will happen.

    Comment by Hyper on Hyper — 6/29/2006 @ 2:03 pm

27. I can see your conflict of interest since your group supports Duchess……I sense a few sour grapes with your reaction today. your readers(followers)need to know this… The Trustee of the MarketByte LLC Defined Benefit and Trust (“the MarketByte Pension Plan”) has invested approximately $140,0000 in Dutchess Private Equities II LP, a limited partnership in which the MarketByte Pension Plan is a limited partner. No one associated with the MarketByte Pension Plan has any knowledge, information, or control as to any past, present, or future investment activities of the Dutchess Limited Partnership. The Dutchess Limited Partnership is one of two hedge funds managed by Dutchess Advisors. Dutchess Advisors periodically refers companies to MarketByte LLC for possible coverage by one of the MarketByte LLC publications, which publications include The OTCJournal.com Newsletter. Dutchess Advisors may or may not own shares in the companies that it so refers to MarketByte. MarketByte has no information as to whether Dutchess Advisors owns any shares in the companies that it refers to MarketByte LLC. The above relationships should be viewed as a potential and/or actual conflict of interest by shareholders and prospective shareholders of MarketByte LLC client companies.

     

    Editor: As already covered above. Thank you for your contribution.

    Comment by Anonymous — 6/29/2006 @ 12:30 pm

28. After reading all your posts it seems to me that you have a hard time making up your mind, which is only human nature. However it is very sad to see a shareholder go through the rough waters and jump ship right as we reach the water filed with black gold. Instead of posting opinion try looking at the facts: HDY is in the position to control a multi-billion dollar deal within a short time frame, they own 100 percent of the rights to drill and they have ushered in a relationship between Guinea and the United States. The financing has not been put in place out of necessity but out of commitment to drill, re-read the filings. The 2006 PSA is around the corner and taken into consideration that the stock has a small float and multiple oil companies, large and small, lined up to partner; share availability will be limited. The share price is reflective of the volatility of a high risk- high reward situation in conjunction with the average summertime slope and an impatient market place, we have a stock struggling to keep its head over 2 bucks. These elements will still be able to keep this thing cheap when the new agreement is put into effect. Think I’m dreaming dear editor? Keep watching from the sidelines, as the shareholders of HDY will be apart of something that is going to usher a new era in the history of the oil business.

    CWATTS IR:HDY

     

    Editor: Perhaps, but in light of the following facts I have chosen to wait on the outside, watching for developments without any capital at risk. Here are some indisuptable facts: 1. HDY applied for drilling permits nearly 10 months ago under the US Oil deal, and were denied. While the ruler of the country did apologize, no new drilling permits and no new deal has been consumated yet. In the interim, the company keeps burning cash. 2. HDY is in a law suit with its jv partners on the highly touted Louisianna natural gas properties, which were nearly a complete failure. 3. The company has just entered into a debt deal with one of the most agressive financiers in the microcap world with no money or cash flow to repay the debt.

     

    Taking all of this into account, I have decided to stay on the sidelines. If your prediction is true, there will be plenty of time to get back into the stock when, as you state: “HDY will be apart of something that is going to usher a new era in the history of the oil business”. It would have been far more palatable to hold this stock if the debt deal had been done after getting the drilling permits, and the debt had been used to finance a drilling program.

     

    Here’s the reality- the market pays for results. So far- the only results this company has delievered in four years of this is some seismic data for a place that can’t even drill. If circumstances change, so will my viewpoint. Until then, I choose to watch from the sidelines. I’m from Missouri on this one- the “Show Me” state. Thank you for providing some facts on the other side of the story.

     

    By the way- there is nothing I would like better than to be proven wrong. I hope the company does pull it off. There will be an opportunity to make money if it does happen.
    

    Comment by cwatts — 6/29/2006 @ 12:00 pm

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