peak oil and hdr I think the case with HDR is that it has one of the purerest and direct exposures to POO you will have on the ASX board.
POO is going to be on a straighline path to the moon. As a firm believer in the peak oil story (if you have not look into to this, it will be worth you while as this is ALL that you hear about in the next couple of years as the story hits centre stage and move from fringe science to public acceptance), I am anticipiating POO to break into historical highs going forward. The age of cheap oil is behind us and oil will go to 3 figures within the next couple of years, with or without a war with Iran or hurricanes in the GOM.
I have followed HDR for a long time and it has been a sentimental favourite, first as a long spec, then as growth small cap and now a mid cap producer that is going to be a cash cow with fantastic growth potentials to boot. HDR has not performed all that well for the last year and half but I don't think that would not be a case for long. With the WPL stake being digested by the market, I actually think HDR has done reasonably well and it should be on the radar screens of majors now WPL is out of the picture. Going fwd, there should gradually be a takeover premium built in the price as well.
So for long timers, I think the HDR story is still very much intact and we will be richly rewarded over the long term.
HDR Price at posting:
0.0¢ Sentiment: None Disclosure: Held
