Motley Fool's comment....

[will2bgreat]

Why InterOil's Shares Jumped

By Travis Hoium

"Now what: This is another good step forward for the company, and investors are obviously happy with the news today. The company is going through a partnering process and plans to sell down its interest in both the Elk and Antelope fields in the near future. Until that is done, I would be a little leery of jumping into this stock, especially considering the very volatile movements we've seen in the past year. "

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Hmmm...   so, if I understand Travis correctly, an investor should wait until everything is signed, sealed, and delivered.   Then buy in (at $100+ per share).    That sound like a great investing technique.  NOT !!!

John, I respectively disagree.

For the investor that does not want/like risk, an investment in IOC post signing is still a good investment post signing and here is why:

• While IOC is going to pop with the announcement of a deal, I don't know if it is going to pop the amount that we hope.  There are way too many shorts here and these guys are not simply going to watch their short position in IOC tank.  I suspect that is when things will really get nasty.  This is going to be article after article about all of the non-binding statements in the agreement, articles questioning the value of the agreement, the timing of the project etc.
• The shorts have shown that they really control the price of this stock and until I see otherwise, I still believe they do.
• Even after the deal is signed, IOC has lots of prospects/gas to find.  Give Phil money from the sell down, and sit back and watch Phil (and Dave) do what they do best, drill and discover more gas and maybe some oil.  That is why I get frustrated with the delays, I just want a good deal with some money to continue IOC's development, not a perfect deal.
• I really believe IOC will become a $500 to $1000/share stock in the next 10 years.

But that is me, a simple engineer who is only concerned with the resource and not all of the other BS.  Give any company IOC's resource/prospects and they will figure out how to monetize and grow this company.

Good luck longs.