Jump to content

IOC - InterOil


alertmeipp

Recommended Posts

Anyone follow this one here? Would like to hear your thoughts.

 

I am getting interested as it has dropped 50% since they announced a "transformation" deal with Total SA. The deal carries a few uncertainties and the big part of the $ won't come anytime soon, so maybe the hot money is getting out.

 

Also, noted that this is also one of those naked short story stocks.

Link to comment
Share on other sites

 

you may want to read the old pitches on VIC for background (available to all because they are old). don't know anything about it myself. just pointing out this has been lambasted for years for being shady.

 

 

http://www.valueinvestorsclub.com/value2/Idea/ViewIdea/77689

 

http://www.valueinvestorsclub.com/value2/Idea/ViewIdea/2455

 

http://www.valueinvestorsclub.com/value2/Idea/ViewIdea/1860

 

Link to comment
Share on other sites

 

you may want to read the old pitches on VIC for background (available to all because they are old). don't know anything about it myself. just pointing out this has been lambasted for years for being shady.

 

 

http://www.valueinvestorsclub.com/value2/Idea/ViewIdea/77689

 

http://www.valueinvestorsclub.com/value2/Idea/ViewIdea/2455

 

http://www.valueinvestorsclub.com/value2/Idea/ViewIdea/1860

 

 

The stock was promoted for years by management, MS &Co, RJ and an assist from Soros.  MS did some of the early private financing and their head of capital markets was a former RJ analyst.  They were able to push the stock to anywhere they wanted as long as they didn't have a deal.  Once a deal was announced the ctock could now be valued based on what oil majors thought it was worth.  We are working through that valuation now and we are trending down over time.  I don't see an edge for an investor in what is essentially a binary bet.

Link to comment
Share on other sites

  • 2 years later...

Anyone looking at the arbitrage opportunity?

Basically the question is to ascertain the value of the contingent resource payment (if any).

Case for: https://www.valueinvestorsclub.com/idea/INTEROIL_CORP/138887

And against: http://www.concernedinteroilshareholders.com/uploads/IOC_Slide_Deck_II_-_July_26_2016_Final.pdf

The VIC writeup has a nice summary on the arbitrage trade.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...