Since many don't look at Yahoo. I reposted this J Wilkins article here from Stansberry and Associates.
Interesting Bonk is distorting the Baldali stock performance track record. Anyone surprised.??
July 31, 2012
IOC makes new highs… Badiali called it… Matt and Cactus in Papua New Guinea… Minkow's 'research'… An easy 61% on XOM… Doc's blue-chip oil pick… Jeff Clark: 'Take profits on oil'… Selling options for income…
One of the most hotly debated stocks we've ever recommended is trading at new highs on a string of good news.
Pacific Rubiales Energy, a $6.8 billion Colombian oil producer, bought a 10% interest in one of oil and gas producer InterOil's three discoveries, called Triceratops. Also, the shares have been buoyed by news that InterOil recently completed a successful drilling effort, and oil major Royal Dutch Shell is considering buying out the company.
Matt Badiali recommended InterOil to his S&A Resource Report subscribers in January 2010. The company operates in Papua New Guinea. And it controls what we thought could be one of the world's largest oil and gas reserves. When he recommended InterOil, billionaires George Soros and Carlo Civelli had already taken positions. And Japanese investment bank Mitsui also owned the stock. (Japanese banks are notoriously conservative.)
On the other hand… our friend and hedge-fund manager of T2 Partners Whitney Tilson was short InterOil, bolstered by research from Barry Minkow, founder of the Fraud Discovery Institute.
Minkow, as you may know, went to prison in the 1980s. His publicly traded carpet cleaning company, ZZZZ Best, was a Ponzi scheme. After his release, Minkow remade himself into a watchdog, exposing fraudulent companies. InterOil marked his first foray into the energy sector…
Our analysis of InterOil was based on boots-on-the ground research… We sent Matt Badiali and Cactus Schroeder – one of our most trusted oil experts – to Papua New Guinea to research the company and its reserves. Then Matt, Cactus, and Dan Ferris all had dinner with Civelli – the company's largest shareholder – in Zurich. Many of our associates operate in speculative mining and energy stocks. And we're not at all naïve about it. Dinner went well, and Matt came away still confident in his call.
Meanwhile, the shorts were rallying behind Minkow, who based his short thesis on the barrage of press releases InterOil sent out. What Minkow – whose main business experience involved cleaning carpets – didn't know was that press releases are very important to speculative natural resources companies. InterOil is drilling for natural gas in a remote jungle. Nobody would know they exist or what they're doing without press releases.
How does the story end? Well, as I said above, InterOil is currently trading at new highs. And Minkow is back in jail… Last March, Minkow pleaded guilty to criminal insider trading for actions that damaged the stock price of Lennar, one of the country's largest homebuilders.
You can read a more complete version of the InterOil saga (including an amazing picture of the company burning off gas) here. The InterOil dispute shows the power of boots-on-the-ground research and a strong network of professionals… We did the tough research and were proven correct. We hope Tilson covered… The stock could go even higher from here.
One of our top sources in the energy sector is bullish on InterOil. He believes the Big Oil companies will start a bidding war for the company (with ExxonMobil as the most likely buyer).