Folks,
Are we not missing the main point here of the shorts. The shorts have their positions because IOC is a cash burning machine. Don't get me wrong, I am long IOC because of their natural gas reserves but until that gas is monetized, IOC is a cash burning machine. The only threat to the short positions is moneitization. Furthermore, this partial sale to XOM has done nothing to change their mindset. From their position they are asking themselves a question, "If the deal between IOC and XOM is so great, why is IOC looking at doing a seperate LNG plant?" And given IOC's history of overpromising and underdelivering, they see this sale as nothing but more of the same. If you want to see the shorts leave, IOC needs to cut the deal with XOM that shows monetization of the resource in some given timeline; preferably 3 years. That will get the shorts running for cover. Anything short of showing XOM is committed to this deal within some give timelne and staying flat on a good day will be the least of our concerns.
Good luck longs.