When a company such as HDY conducts a reverse share split, it is usually because shares have fallen to a lower per-share pricepoint than the company would like. This can be important because, for example, certain types of mutual funds might have a limit governing which stocks they may buy, based upon per-share price. The $5 and $10 pricepoints tend to be important in this regard. Stock exchanges also tend to look at per-share price, setting a lower limit for listing eligibility. So when a company does a reverse split, it is looking mathematically at the market capitalization before and after the reverse split takes place, and concluding that if the market capitilization remains stable, the reduced share count should result in a higher price per share.

Looking at the HDY split history from start to finish, an original position size of 1000 shares would have turned into 125 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into HDY shares, starting with a $10,000 purchase of HDY, presented on a split-history-adjusted basis factoring in the complete HDY split history.

About HDY

Hyperdynamics is an independent oil and gas exploration company. Through its subsidiary, SCS Corporation Ltd, Co. focuses on oil and gas exploration offshore the coast of West Africa. Co. operates in oil and gas exploration, seismic data acquisition, processing, and interpretation. Co. has exclusive contractual rights to explore and exploit offshore oil and gas reserves, if any, off the coast of Guinea (the Contract Area). The Contract Area is located in the Transform Margin play, offshore Guinea. As of June 30 2014, the Contract Area was 18,750 square kilometers. According to our HDY split history records, HDY has had 1 split.

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