HDY to Turn Bearish

February 17, 2012
Hyperdynamics Corporation (NYSE:HDY) lost 28.71% and fell sharply amid the investigation case.
Over the recent year the company reached its highest trading annual value at $7.15. However, at the beginning of February the 50-day moving average of HDY crossed below its 200-day moving average and thus turned to a downward moving trend that resulted in reaching its new 52-low of $1.01. In the course of trading on Thursday (February, 17) the company lost $0.58 per share and closed the session at $1.44. At the recent closing price the company’s market capitalization amounts to $240.22 million, this indicates that HDY belongs to the group of small cap companies.
Earlier the same day Faruqi & Faruqi, LLP, one of the reputable national securities law firm announced that it had started and investigating procedure with regard to potential securities fraud at HDY.
The announcement of the company’s investigation as well as the unusual price downgrade resulted in the increasing trading volume. Thus, as many as 33.38 million shares of the company have recently exchanged hands. This is almost ten times higher as compared to the average trading volume of the company calculated on a 30-day basis that amounts to 3.52 million shares.
The company owns 166.82 million outstanding shares engaged in stock market portfolios of multiple investors. The HDY Company is currently referred to a group of high risk companies given that its beta is equal to 2.50 indicating that the stock is significantly more volatile than the market.
Hyperdynamics Corporation is a representative of the Oil and Gas industry of the Energy sector. The company is focused on exploring and developing oil offshore in the Republic of Guinea.
By Amber Cold

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