This is for newbies who might not know about Citron Research and the "Helia Tec" chapter in the InterOil storybook:
Just Another Character in the Interoil Story
Much of the credibility of IOC’s LNG story lies in the hands of Clarion Finanz and its main operator Carlo Civelli. Clarion is not only a major shareholder, but they are also 1/3rd partner in this supposed LNG Facility that one day might get built.
On February 15, 2007 Bloomberg published a story that Clarion Finanz was going to sell to Helia Tec part of its interest in Interoil for $425 mil.
This put some sort of voodoo valuation on Interoil that Wall St. was supposed to get excited over. But here is what we found out about the alleged deal.
1. Helia Tec was a high flier on the Korean Stock Exchange that recently crashed and burned. Look what has happened to their share price in the past few months.
2. Helia Tec’s subsidiary (Helia Tec Resources) was supposed to fund this acquisition. Quite a feat, considering that Helia Tec Resources was funded with a whopping $258,000 startup money.
But here is our favorite: Who is behind this alleged transaction with Interoil? None other than Cary E Hughes:
Cary Hughes’ last job was president of Ness Energy (OTC:NESS), currently trading at 10 cents. Ness Energy was the company made notorious for claiming that God was going to show them where to drill for oil in Israel. [“Ness” means “miracle” in Hebrew. “God has it all orchestrated”, per Ness’s CEO.] Needless to say, this one didn’t end well.
Another quarter, another story. As Interoil buys time to figure out their next move, the market has been blindly accepting any information they put out. Maybe it is time that investors open their eyes to the realities of Interoil, and hold the company accountable for unsubstantiated claims and unfulfilled promises.
Sentiment: Strong Sell
The "helia tec" episode was just one early chapter in this soap opera but it exposed the not very hidden hand of Carlo Civelli of Vancouver BC renown.
Sentiment: Strong Sell
When was the last time we saw this many shady characters involved in one company? It reminds me of all of those Chinese RTO's that crashed and burned. I dont know how anyone can possibly trust anything management says.
Ha ha, there's a reason nobody's heard of the sweat shop boiler room so-called research firm. Wow, you shorts sure soooo smell of big fear as your efforts are ridiculously desperate!!!
Keep up the good work boys!!!
Sentiment: Strong Buy