HDR hardman resources limited

todays story from abn amro for those who havnt see

  1. 1,564 Posts.
    HDR: Day Two and the stock jumped back 4.5% yesterday: now, I’d like to think it’s because of our note but realistically, I’d say that it was Were’s selling from a few days ago that meant it was probably alittle oversold. Sticking with the theme though: below two bucks, it’s a free call. Exploration is like throwing a paper airplane. You can fold it very carefully, but you never know how it’s going to fly. It’s unfair to assume the latest drilling results have been a failure. We view this as another timely reminder that wildcat drilling is a high risk undertaking. More dry holes are inevitable. That said, we still consider the Mauritanian exploration potential over the longer term to be a good reason to invest. The best level to enter is when the share price is not too buoyed up by speculation about ‘the next big thing’. Which is why I mention it today. The stock’s come off plenty (north of 10%) over the past few days and if you think there is oil SOMEWHERE in Mauritania – and let’s be fair – the Tiof 3 appraisal well was quite positive – then you’d hold it if you’ve got it. If you don’t around these levels, buy a few. The risk is to the upside. If you think it’s too risky, buy Woodside.

    For the LONG HOT: HDRIZU (Jan 06, $1.50) DELTA 75

    Cheers Hoot
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