*** overvalued? ***

The big issue with HDR is that at $2.00 the company is capitalised at over 1.3 billion dollars.

Yet HDR are currently not making any earnings. When you consider there are plenty of oilers trading at below 10 times anticipated 2006 earnings it puts HDR into perspective.

Throw in the possibility of development/cost over run issues and we can see why HDR's share price is currently battling.

Since HDR hit $2.48 on 1st. August last year the share price melted down to $1.38 in a wave of panic selling, hit $2.56 in the last week of July this year and since then has been sold off to close today at $1.90.

HDR's share price looks precarious. Key support is arounnd $1.80. HDR has also badly underperformed the XEJ since August last year.

Falling in love with a stock that has once been an outstanding share market performer often ends up with tears, animosity and a broken marriage. It is often better to part quickly and amicably.