Comes under the header "Is It Time to Buy These 3 Stocks", of which IOC is one.
Here is the text:
A Partnership That’s Coming Together
InterOil Corporation (NYSE: IOC) did not receive an upgrade on Tuesday, but it did trade higher by 4.4% behind a corporate update on a proposed transaction with Exxon Mobil in Papua New Guinea. This transaction involves natural gas assets, which should lead to rapid expansion due to the resources of Exxon Mobil.
For those of you unfamiliar with this energy play, InterOil has assets worth billions, but has been searching the industry for a strategic partner since 2011. The “billions” of potential sales was in liquefied natural gas (LNG), but InterOil is simply supplying gas to Exxon for its projects.
Back in February, InterOil announced that it has received “several bids” for LNG, but the Exxon deal was less than what many expected. As a result, InterOil has lost almost 20% of its value during the last month.
However, this deal presents the opportunity for further expansion, additional partnerships, and a possible acquisition. Thus, with InterOil providing an update with a dual development path to expand its production, I think the value presented in the stock is attractive for retail investors, seeing as how the market overreacted negatively to the Exxon deal.