By Tim - http://stockstobuy.org
Shares of Hyperdynamics Corporation (HDY) are surging again today after the stock broke up through $2.50 and hit a new 52 week high at $2.64. Hyperdynamics Corporation (HDY) now has support located at $2.50 as well as $2.38.
I started looking into Hyperdynamics over a month ago when the company came out with news regarding their potential oil reserves off the shore of West Africa. It is important to note that the company does not currently have any revenue which makes the stock risky. How risky? Well, the stock has run up on anticipation on the company drilling their first well in December 2011 and finding another partner in addition to Dana Petroleum. Maps
Based on the recent news, I feel the stock can hit $4.00-$6 in the next 12 months on what we know right now. Besides a weak oil market, factors that would put a damper in my price target would be further dilution by selling stock, a downgrade on the amount of surveyed oil, or any Government interference regarding their leasing area. In my opinion, Hyperdynamics has better potential at It's current price of $2.60 then Samson Oil & Gas (SSN) did at $0.70. Having said that, the risk is a lot higher.
I have a small position and will continue to buy HDY stock on pullbacks or breakouts. As we get more positive news on what they are actually sitting on, I will get more confident and the price should rise.
For more oil news, check out http://oilshalegas.com or visit my blog at http://daytradingstockblog.blogspot.com
