What’s going on?
We asked around and could not ascertain any impending bad news. The gas is still there, the liquids are still there, there is still a good chance InterOil can get the oil flowing. We think this market is being manipulated at the moment:
- Mothley Fools published a “report” based on Barry Minkow’s “analysis”
- You might wanna check what is real about Barry Minkow’s analysis. Not much
- InterOil just hired a highly experienced guy from Marathon to manage their LNG division
- That “report” was apparently send to many hedge funds
Add to that a general market that is moving away from more riskier assets and hey presto, you have a sell-off. Mothley Fool has been very questionable before. In the meantime, this might last a little until we get some news from InterOil. So it’s basically an orchestrated short attack but the value proposition of InterOil hasn’t changed one single bit.
- The deal with Mitsui on a liquids stripping plant within reach
- There is a good (but not 100%) chance on getting the oil flowing at Antelope2
- The shorts will have to cover some time. Will they get a better chance? We would be very surprised if they really believe their own writings, to be honest. And there are signs they don’t (and here)
But until we get clarity, the market will be the market. Add if you have the stomach to go through these swings. We don’t see any reason to sell now.