Since the bounce this morning in response to the press articles HDR has now lost its "speculative appeal". The big win for the punters (and holders!) didn't eventuate so now where is the upside to excite traders and investors?
At least the selling has stopped but there aren't many buyers. THe price is likely to slowly retrace until the next Chinguetti appraisla well nears total depth. With weeks to wait for the next drilling excitement and with no information forthcoming on porosity/permeability or development of Chinguetti why would you be buying??
HDR may now be entering another consolidation phase. It will most likely be a slow grind going forward from here ,so long-term investors will be rewarded EVENTUALLY but slowly.
The only big upside we can hope for in the next few months is a takeover move by ENI or WPL or other. The last well (exploration) will add a little if successful and shouldn't hurt too much if it disappoints. I'm not hoping for a takeover although... at the right price???
H
HDR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
