http://www.bloomberg.com/news/2013-10-14/nobel-prize-shows-both-wisdom-and-madness-of-crowds.html
Nobel Prize Shows Both Wisdom and Madness of Crowds
Excerpt (about midway through the article):
Shiller has shown that stock prices are far too volatile to be consistent with market efficiency. The logic is simple: Because a stock is an entitlement to a company’s future dividends, a stock price should only fluctuate as the value of future dividends rises and falls. However, as any market-watcher knows, stock prices are incredibly volatile, even as dividends tend to be stable. The juxtaposition of these facts suggests that something beyond fundamentals drives stock fluctuations.
In Shiller’s telling, markets can be subject to extraordinary popular delusions and the madness of crowds, in which stock prices become unmoored from future earnings.
***************
I don't know the answer to my question - on days like today, I start to question my sanity !! 
Are we seeing InterOil through rose-colored glasses, or, is the rest of the market delusional ?!?!