Discussion in 'Stocks' started by mnx, May 29, 2007.

  1. mnx


    any thoughts on IOC here?

    I sold some 35$ calls when the stock was under 31$ and got out of them this morning @ 35$.

    I'm still bearish on the stock, but the way it's moving today is making me have doubts...

    - mnx
  2. da-net


    what was it that had you thinking this was going down?

    an oil company, summertime gas consumption goes up which means profits go up, on a weekly chart it put in a double bottom back in mid may and early august of 06, wave count wise it is either in wave 3 or 5 depending on your viewpoint and the candles look extremely strong especially last weeks. i would be going long here at least for the next 4 weeks maybe 6.

    obviously i missed what you saw on your analysis..... so please tell me and let's compare notes! it will help us both!
  3. mnx


    my analysis was more fundamental... you might laugh at me but I was using ( as a bit of a sentiment indicator. Seems the overwhelming majority of people think the compnay is a total POS...

    the past 4 days have been quite a strong run up though...

    - mnx
  4. m22au


    I like Citron Research. I recognise that not all of the stocks mentioned on the web site will go to zero, and not all of the articles will result in profitable trading opportunities.

    Having said that, Citron Research has written about IOC in the past, and today's action in the stock is interesting to say the least.

    Down over 12% on heavy volume.

    I'm still in the middle of trying to understand the story.

    There are a lot of posts on the Yahoo messageboard to work through

    and my starting point is this article

    "InterOil CEO Slapped for 'Bad Faith' Bankruptcy Filing"

    article can also be found here

    "Company controlled by InterOil CEO files 'bad faith' bankruptcy; Mulacek dumps nearly $1.5 million in stock 2 days before filing for federal protection; tries to derail civil fraud case that seeks up to $1.3 billion in damages and could be 'devastating' to InterOil"
  5. m22au


  6. m22au


    New York Post article yesterday (25 March), but it was released well before 9.30am ET on that day, so not really a catalyst.

    Still interesting background reading:

    However, after seven years of exploration and drilling, InterOil has yet to produce any proven commercial oil or gas reserves.

    Nevertheless, InterOil's stock is up an astounding 385 percent since the start of 2009 -- a feat critics attribute to InterOil's flurry of uplifting press releases about its drilling and exploration plans.

    On Jan. 20, for example, the company issued a release announcing "indications of oil" at a well it called Antelope-2. News of the so-called indications sent the stock up more than $6, or 8 percent, to $81.38.

    InterOil has a market cap at $3 billion. (Exxon's is $314 billion.) Its only revenues come from oil refining and distribution, a small business that allowed the company to post its first-ever full-year profit, of $6 million, in 2009.

    InterOil spokesman Wayne Andrews said that although the company isn't currently making money on its oil and gas exploration, and that a plant may take to 2015 to build, the stock is not overvalued.

    "We're just a small company looking to partner with a larger company to develop the resources we've discovered," Andrews said.

    Yet some analysts agree it's a risky proposition.

    "It's a speculative stock, there's no doubt about it," said Pavel Molchanov, a Raymond James analyst.

    "The profitability of the refinery is limited," and "the stock is trading at $70 for the reserve potential," said Molchanov, who has a "hold" recommendation on the stock.
  7. m22au


  8. wave


    down to $24-12
  9. m22au


  10. Seems there's two kinds of oil companies.

    Those that rob the public at the pump.

    Those that rob stockholders.
    #10     Mar 26, 2010