Looks like the run-up was the typical "pump and dump" as the game is often called. Any novices here should disregard most of the nonsense you read on these boards. Manipulation is too easy with these small companies. From the little I've seen here I would say that "ED" is genuine but many of the others are kids playing games. Beware.
Thank you for answering (on Sunday!).
From what you say, paradoxically, a nice little pump would just help this stock to reach eventually its real full value. :-)
I am joking ... but not too much ...
Have a nice weekend!
I been here for three ride downs and then Up.
You need to know when to Buy, then Hold, and then Sell, then Wait and start the whole thing over. This is known to Old Timers as the Harken Game.
The Selling is easy, that is when the pumpers out of nowhere arrived and start posting like "HKN will hit $20.00" without any facts or fundamentals.
If you base your Buying on Fundamentals, you will be OK.
HKN is just starting(Early) to look cheap again.
1. June 30TH Book Value will again be approx $11.00 per share becauce of HKN investment in Global(GED.L). Ged.L stock value has gone from 66 Pence on 3/31/08 to 122 Pence on 6/30/08. There is no P & L effect, but Equity on Balance Sheet goes way Up.
2. GED.L's Production is back to were it was last year at this time, but Crude OIL's(only product)price is way UP. GED.L is making a Good Profit.
3. GED.L has a chance with the new Well(Tilodiran #3) now being drilled to finally boost production and raise their Stock Price.
Tilodiran results should come out early August. GED.L is known to delay releasing results.
4. Again, my Opinion, GED.L will be bought out shortly making HKN shares worth a Lot more.
5. If you look at the Latest 8K, HKN is protecting their executives based on a expected takeover.
6. An easy way to Buy Ged.L is too buy HKN with its approx 11 million shares of GED.L. Lyford which owns a Huge portion of HKN shares also owns a lot of GED.L shares.
7. CBM(Coal Bed Methane) has finally come out of darkness with HKN finally doing CBM slides in their presentation. CBM might finally be worth somethimg
8. The Warrant overhang will finally come to an End in approx 2 months.
9. Crude Oil and Natural Gas are so High that HKN is making a Profit on Low Volume.
10. HKN Balance Sheet is Superior with large Cash anounts, Huge Current Ratio, very little liabilities. and Debt(Preferred) under $5 Million.
1. HKN production is down approx 40% from where it was a couple years ago. There doesn't seem to be any urgency to drill on HKN Operated Properties.
2. In the last 10Q, HKN talked about selling some properties. The Non Operated Properties aren't doing anything other then Creole Offshore and Lake Verret East.
Rozel, the operator of these properties has now sold off 60% of its Interest in Lake Verret East.
3. HKN has had 3D Seimic on its Main Pass # 35 for years and still hasn't drilled any Wells there. We are lucky to see HKN do any workovers in this Field which is their "Main" Field. You get the impression that HKN is doing nothing but "MILKING" this and other fields. I been posting Updates on these fields so others might see what HKN is doing.
4. Most of HKN Cash is devoted to investments not Oil & Gas Explorations.
HKN has been burned many times when starting new ventures.
Do your Due Diligence.
Best of Luck.
Full Disclosure: I sold all my HKN shares on the way up. I was a little early in Selling.
Thank you again for this very informative post.
I have a question:
In another post (Fundamentals of HKN) you analyse the stock in details and come up with a Revised Book Valuation of approx. $20 ($19 + $1, since "Book Value will increase approx $1,00 at the end of the 2nd quarter because of this Valuation change").
Why do you think that saying that "HKN will hit $20.00" is pumping("the pumpers out of nowhere arrived and start posting like "HKN will hit $20.00" without any facts or fundamentals")? Isn't it a fair value and a realistic projection?
It is a real question, not a provocative one.
Thank you for your kind reply and for your readiness to post here.
I need to add two more Positives:
11. HKN didn't have any Hedges as of the 1st Quarter 10Q. HKN is getting the full benefit of Crude Oil & Natural Gas price increases.
12. According to the 10Q, HKN will be receiving more 3rd Party production going thru HKN owned Main Pass #35 pipeline. This will mean more Non Oil & Gas Revenue for HKN.
I posted this yesterday:
"3. HKN has had 3D Seimic on its Main Pass # 35 for years and still hasn't drilled any Wells there. We are lucky to see HKN do any workovers in this Field which is their "Main" Field. You get the impression that HKN is doing nothing but "MILKING" this and other fields. I been posting Updates on these fields so others might see what HKN is doing. "
Last night I had a chance to reveiw every Well in Main Pass #35 Field and found no improvement to any Well. Actually April production was down from March, 2008.
I also checked out the Lapeyrouse Wells. It seems that Castex(the Operator on this Field)
has finally got its act together. All the Wells were tested in April and April Production was higher than March. But, there isn't any sign of any Recompletions or even a
Permit to drill. Time will tell.
Very Best of Luck.
Great name and you are correct. People posting this is the only stock that went up and down in this sector are very inexperienced in the market.
Keep up the fun and funny posts and ignore the posters who only post to complain on down days. Remember, misery loves company!
Thanks, Hrry, for the reply. Yes, it was small but it still can hurt the young investor who is looking for a run-up and gets in near the top. Afterall, why not load up at $12 when the board pumpers are shouting that $20 is right around the corner? Very few get in at the bottom, right? So, to all, remember that until you sell you've made nothing. When the cash is in your account then you're a winner.