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InterOil Corporation Message Board

  • pickboone pickboone Aug 29, 2013 11:33 AM Flag

    Going up

    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.

    Sentiment: Strong Buy

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