I think this is a positive sign - they also indicated their frustration with HDX management in their October update and suggested they would push management for better governance
Given the size of this increase in their stake you would imagine they are satisfied things are heading the right direction
Here is their October quote
Shares in Hughes Drilling (HDX) were suspended right through October for not lodging audited accounts on time. We feared the auditor was honing in on serious issues but the company finally produced audited accounts just after month end and its shares have resumed trading. The news wasn’t horrendous. Due to a higher depreciation expense required by the auditor, net income fell marginally, from the $8.9m previously announced to $8.2m. More ominously, though, a going concern note to the accounts now reveals that bank covenants are close to being breached. That’s another warning sign that management are too cavalier with how they run and finance the business. We’ve voiced our concerns previously, but will now push for reform more vigorously. Hopefully this debacle can become a catalyst for change. The company has enormous potential value but is in need of more robust governance.
I'm hoping we have seen the bottom now
Dazzler
HDX Price at posting:
7.9¢ Sentiment: Hold Disclosure: Held