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InterOil shares perform very strongly

August 10th, 2010 · 4 Comments

Remarkable!

It looks like the stock price action is trying to tell us something. We were expecting some kind of profit taking, followed by a consolidation phase, but the stock is way stronger than we expected, going up in a down-market even after it had a very strong rally already.
Possibilities:
  • A) Panicking shorts
  • B) Near inevitability of more substantial good news on the way
  • C) Funds praying on the weak position of the shorts (it’s a dog eat dog world out there..)
We think it’s a combination of all three. The shorts wouldn’t be panicking if B wasn’t a real possibility, and we have already seen in the data that C is happening.
Very encouraging. The only thing missing is the volume, but that could actually be a more bullish sign:
  • The shorts are no longer in control of the price even on low volume days
  • What will happen when the buying volume really kicks in on a substantial announcement…

There still might be some consolidation (the stock is slightly overbought), but we wouldn’t count on it. It really looks like it just wants to get higher..

See chart below:

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Tags: IOC

4 responses so far ↓

  • 1 CommanderCricket // Aug 10, 2010 at 5:56 pm

    In my opinion, the float has dried up as has been commented on from Morgan Stanley and others here.

    Additionally, holders are unwilling to sell at these prices and are waiting for the news most everyone now knows is coming.

    So who blinks first? – the shorts are in trouble as the low volume and even a bearish market is not giving them their usual cover.

    Michael

  • 2 admin // Aug 10, 2010 at 6:17 pm

    Well, kudo’s to Janine. That really is exactly what she predicted some time ago, see comment on this article:
    https://shareholdersunite.com/2010/07/14/ioc-mitsui-petromin/

  • 3 kencooksam // Aug 10, 2010 at 6:54 pm

    Janine seems well connected indeed.It s been the plan for a while to dry up all the shares and squeeze the shorts.Needed deals before that plan could be executed.
    Exxon sharing on a pipeline seems real.
    Henry bringing his entire EQ team over seals the deal with Marathon for me.
    FLNG is quoted in NYC as the reason the stock is going up.That deal is close.

  • 4 Harold Chamberlin // Aug 11, 2010 at 11:15 am

    Should be a fun quarterly cc next week.