Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of profitless wildcatter Hyperdynamics
So what: As far as I can tell, there are only two legs supporting today's surge. One, oil prices are up about 2% in today's trading. It's anybody's guess which way they move tomorrow (or 15 minutes from now, for that matter.) Still, last night Jim Cramer set up a second leg of support beneath Hyper-D, giving "bulls" the all-clear to "speculate" on the stock in hopes of further oil price rises.
Now what: Well, that sounds like great advice to me. I mean, what could be better than buying shares in a profitless, revenue-less company seeking oil in the wilds of the Republic of Guinea? Sure, the company could go bust before it extracts a drop of black gold. But it's so much more interesting than investing in a boring old business like ExxonMobil
I jest, of course. My advice: Ignore Jim Cramer, and avoid Hyperdynamics. There are better bargains out there, and better ways to make money, with less chance of going bankrupt.
Will Hyperdynamics bulls prove Rich wrong? Add the stock to your Watchlist and find out.
Fool contributor Rich Smith holds no position in any company mentioned. Click here to see his holdings and a short bio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.