'johnwgrant' pid='16613' datel Wrote:Petrengr1: I love your analysis. What I don't understand is this: we as shareholders can see InterOil's value so clearly. What is wrong with the rest of the market? Are we really 'smart', or, are they 'stupid'/not-paying-attention? Is IOC the $100 bill on the sidewalk in New York that the Wall Street investment broker won't bend down to pick up because: "If it was really a $100 bill, someone else would have already picked it up!" . . .
John- We are definitely swimming against the current here. Probably 99+% of the investors in the market would not consider investing in PNG. Very few people have looked at or evaluated IOC. If you tell your friends where you are investing your money they will say: You are investing in WHAT? You are investing WHERE? I hope we are the smart ones. I would not say others are stupid but there is a very good chance they are not paying attention or they are not willing to risk their money in a place like PNG.
The Super-Majors also have to be convinced that PNG has changed. As you know some of them have been in PNG before. The Chairman of one of the Super Majors that has left PNG once told me “PNG is a very hard place to do business”. They will have to convince themselves that the IOC licenses are better than what they had before because of: 1. The discoveries, 2. The location near the coast 3. Difference in the local landowners-numbers and character 4. Different (hopefully improved) Government 5. Lower Development cost 6. The abundance of other prospects 7. The apparent new onshore carbonate reef trend where it was not previously expected.
We should find out in the near future if we are smart and if the Super-Majors are as smart as we are.