It wouldn’t be at all surprising if the stock rallied back to the $80’s in the coming days. It seems based on the recent Upstream article that the exclusivity expiration has motivated Exxon to close the deal with InterOil as quickly as possible. Exxon must now be worried that they have let the process drag too long, and with Shell’s new bid and exclusivity gone, the asset and PNG LNG expansion opportunity are Exxon’s to lose. As soon as the market gains confidence that Hession is managing the deal process well and is progressing towards the successful closing of a good deal in the near-term, the sellers will completely evaporate. When the deal is announced, which I believe will happen shortly, InterOil’s stock, which trades at 1/3 of Oil Search’s valuation with more and better resources, will probably be valued at a premium to NAV, or way more than 2X the current stock price. The deal is closer than ever and there are reports that Shell recently bid, yet the stock is 30% lower than its recent high. It makes no sense. This opportunity won't last long and amazingly the shorts have failed to cover, creating a backlog of millions of shares of future buying when the deal is announced.
Make no mistake a deal is on the way. There is no way the stock would be trading at $70 share holders like Well Fargo and other large share holders would hit the sell button.
Who do you think knows what going to happen idiots like casserta or Wells Fargo?
I agree with you. The long side is exhausted. The short side is scared of a deal finalizing.
But here are the facts. The valuable gas is really there. An nearby LNG plant is already 90% completed. IOC has the lowest cost gas to produce.
Don't you think time is on the side of the longs?
Nice post. I agree. We just need the deal to close, and fast. The longer it takes the more short attacks we will have. I know you say you think deal will happen soon, but I THINK that we IOC shareholders are tired of waiting, I know I am. I will not sell 1 share and continue to wait. Man do I hate waiting
BOD'S OF IOC. I SAY AGAIN FOR THE WHO KNOWS HOW MANY TIMES
CLOSE THIS DEAL!!!!!!!!!!!!!!!!