Pavel has added Interoil as his current favorite pick....replacing Exxon.
He writes:
"in the near future, Interoil is likely to make perhaps the most impactful announcement in its company history - the long awaited liquified natural gas (LNG) partner selection and resource sell down. Final bids are due from all prospective partners by February 28th with the board meeting therafter to select the "winner." Final cabinet approval for the LNG project came last November, and management has said that bids have been received from at least four interested parties: two major oil companies, a national oil company, and an Asian utility. While we cannot predict the announcement timetable with precision - for example, the board's decision making does not have to be instantaneous - it seems apparent that Interoil feels confident enough to self-impose a deadline. With the stock currently pricing in only $0.60/Mcf of gas resource -vs. the regional industry average of around $1.20/Mcf for analgous transactions ove the past five years - we think the validation provided by the partnership announcement should meaningfully reset valuation. "