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+--- Thread: SA Honnes hit piece (/showthread.php?tid=1925)
SA Honnes hit piece - Putncalls - 11-07-2012
http://seekingalpha.com/instablog/973944-honne-lp/1250731-the-interoil-saga-coming-to-a-close
RE: SA Honnes hit piece - Palm - 11-07-2012
Big pop in volume and pps drop as soon as this article hits. Amazing how quickly people can read and react. Amazing thing (not really) is that it's inaccurate. IOC did not sell all gas above the initial 4mtpas to PNG. They have an OPTION for up to the "next" 4mtpas and of course must pay market price (at least the PRE price) on anything above their "up to" 22.5% opt in. Another crap article.
RE: SA Honnes hit piece - MRP - 11-07-2012
I like that all he does is misconstrue a recent press release and rehash a meeting from two years ago.
Their description says that they focus on misunderstood securities. Maybe it should be they focus on misunderstanding misunderstood securities :-)
I can't wait for this project to move forward. While I don't react to such silliness, my average hold on ioc is about 2.5 yrs, it is kind of irritating.
soon enough hopefully.....
RE: SA Honnes hit piece - Spartina - 11-07-2012
Great buying opportunity.
RE: SA Honnes hit piece - freddiekingman - 11-07-2012
let's hope they have something to say next week..
RE: SA Honnes hit piece - admin - 11-07-2012
It's more heat than light, no surprise there..
RE: SA Honnes hit piece - Getitrt2 - 11-07-2012
'Palm' pid='12018' datel Wrote:Big pop in volume and pps drop as soon as this article hits. Amazing how quickly people can read and react. Amazing thing (not really) is that it's inaccurate. IOC did not sell all gas above the initial 4mtpas to PNG. They have an OPTION for up to the "next" 4mtpas and of course must pay market price (at least the PRE price) on anything above their "up to" 22.5% opt in. Another crap article.
It probably was not just people in general reacting. It was probably shorts acting in conjunction with its release and trying to draw attention to it and generate more selling on a slow day. Telling I would say if this is the best they can do now, and kind of amazing.
RE: SA Honnes hit piece - Getitrt2 - 11-07-2012
Comment I just published on SA:
It is very telling that any article a short writes or can get anyone to write about InterOil is an incompetent piece of unsupported trash.
This writer cannot even get his facts straight from the Australian WSJ article he references. The leaked proposal (not "announcement") was said to offer Papua New Guinea (on commercial terms reflecting market value) the right to "the NEXT 4 Tcf of gas supply from the Elk and Antelope fields that it could use for a smaller LNG project as well as meeting domestic power needs", NOT "100% of its production above 4Tcf", as this writer states. He then concludes from just that, "I take this as an admission that no energy major was interested in partnering with InterOil because of the dubious value of its resources", without any support or even explanation whatsoever, a conclusion directly contradicted by such parties as a consortium of Japex, Kogas, and Mitsui, and also Shell, and by multiple independent world-class resource engineering firms certifying the resources on multiple occasions.
PNG wanted some domestic gas access from the Exxon/Oil Search project, but the latter's concerns about the amount of gas available were too great; InterOil has plenty of gas and no such concerns. Therefore, InterOil is offering that option to PNG, partly for the benefit of the country and partly in connection with a more flexible and phased project with earlier cash flow for it and its partners, working with PNG toward a win-win agreement for both.
The writer states then that "the billion dollar question is out of the way", without any explanation of what that is about.
Finally he concludes, also without any support or further explanation, that "it MAY not be economically beneficial over the long run to build the LNG project that InterOil has proposed and therefore I have a bearish view on the stock". If he would bother reviewing published information comparing InterOil's Gulf LNG project with other LNG project in PNG and Australia, he would find that it is much more economically viable and expected to be much more profitable than any of those. He also apparently is not aware that the Company already has off-take commitments for the first 4 Tcf of gas, not to mention a ready market for the lucrative condensates from the project. It perhaps should also be mentioned that PNG's Prime Minister and Petroleum Minister have recommended approval of the project to the National Executive Council.
This writer says he is "focused on misunderstood securities". He obviously still misunderstands this one after supposedly focusing on it. He needs to do a great deal more due diligence on it, along the lines of what professional energy analysts at Morgan Stanley, Macquarie, and Raymond James have done. I hope he stays short on the stock.
RE: SA Honnes hit piece - TxPm - 11-07-2012
Getit,
I think his reference to "The billion dollar question being answered" was his way of saying there will be no SellDown. This article is very similar to the garbage article that was written on
Value Investors Club the day the WSJ leak came out.
This writer is a no name manager. I'm beginning to think more and more that a lot of these shorts are getting their info from the same source. The funny thing is how their short thesis keeps changing but our long thesis has stayed constant. The short thesis has changed from No Resources to PNG politics to No Cash on the balance sheet & now their thesis is Essentially PNG nationalization.
RE: SA Honnes hit piece - Getitrt2 - 11-07-2012
Right on, Tx.