Well, it's certainly in a cyclical type business so you have to expect ups and downs. I certainly misjudged the extent of this downturn. Last summer when the stock was almost $8 I thought the worst that could happen was that the stock could fall into the 6's again. I never thought the low 3's was possible. Now I don't know what to expect. Next year there will be a lot of new rigs coming online from China. Nobody knows who is going to run them as the Chinese have ZERO experience.
Maybe they'll hire HERO to run them like Perisai Pacific is doing. Right now HERO appears to be dirt cheap, selling at a fraction of book value and yet they are still projected to be profitable the next two years. The heavy short interest still seems to be in complete control. The stock has never been this heavily shorted in their history.
You've squeezed all the profit you're going to get out of HERO. Short interest comes out on Monday and I doubt much has changed since the last report. That means 26 million shares or more are now short. That's CRAZY. The downside risk from here is minimal. The upside potential is tremendous.
You used to rate HERO a strong buy - here's a post from 6 months ago :
HUGE UP Volume today
by ex_gs_guy • Feb 24, 2014 2:03 PM
HERO is getting ready to EXPLODE!!!
It looks like you are just a trader who goes with the flow.
He must have taken my advice and finally realized that the ONLY way to make money on this dogsch!tt of a stock is to short it. This stock has been a dream come true for the shorts. It's an ATM that spits out cash. It's the Golden Goose that lays golden eggs - every month with a new fleet report.
I know I will NEVER invest in another Texas company if I ever get my money back from this fiasco of a company. Rynd is perceived as a typical Texas Bullsch!tter. Not to be trusted. Who will ever forget - "we expect to have long term contracts signed by the end of the first quarter."
There has been a big change in institutional ownership this year. Many have just lost complete confidence in this pizz poor management. Rynd has got to be one of the most hated CEO's in the country. He comes off as such an arrogant prikk, I guess many people just don't want to deal with him.