3 Reasons to Sell InterOil

In the following video, analysts Joel South and Austin Smith continue their discussion to give you both sides of the InterOil story. Parliamentary government in New Guinea is forcing the company to battle through tons of red tape, which cuts into the company's ability to start developing LNG export facilities. InterOil needs to seize the opportunity with extremely profitable Asian-Pacific markets right now, but government delays could allow competitors to sneak in and grab the profit. Joel cautions investors to watch how these government interests play out for the energy stock. 

InterOil is still a risky venture with a lot of upside potential. If InterOil is not of interest or if the company is carries too much risk, then you should check out our new free report, "The Motley Fool's Top Stock for 2012." In it, our chief investment officer identifies his favorite company for the year. To access the report before the rest of the market catches on, click here -- it's absolutely free.

Joel South owns shares of ExxonMobil. The Motley Fool owns shares of ExxonMobil. Austin Smith owns no shares of the companies mentioned above. Motley Fool newsletter services recommend Chevron. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (1) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 16, 2012, at 4:04 PM, ArtM72 wrote:

    Nothing like thinking IOC's 15+ TCF of natural gas (with condensates) 40 miles from a protected shore might never find its way to market, expecially when one of the two fields has wells that have test flowed at 300 and 600 million cubic feet per day with immediate pressure recovery. The second field has logged in with over 1,600 feet of pay zone with final DSTs pending next week.

    I wonder how many Australian coal seam gas wells it would take to match that production rate? That, and I guess XOM's $15.7 billion 6.6 MTPA LNG facility fed by 9 TCF of fields with 200 mmbbls and a 400 km pipeline is a small, almost an inconsequential, entrance into PNG.

    Go short quick while the market gives you the chance on this uptick! Nobody in China or India wants to be in the middle class anymore and Japan plans to restart all of its nukes next year. LOL.

    I suppose it is tough to make enough investment videos to keep a roof over your head, much less understand the geology and do the research as well. That's ok. Raymond James has still only upped its projected price to $100 and they do a lot of due diligence. But $1.00/mcf for Elk/Antelope and disregarding Triceratops altogether? Hmmm.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1945204, ~/Articles/ArticleHandler.aspx, 10/27/2016 10:45:32 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 hour ago Sponsored by:
DOW 18,169.68 -29.65 -0.16%
S&P 500 2,133.04 -6.39 -0.30%
NASD 5,215.97 -34.29 -0.65%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/27/2016 4:01 PM
CVX $99.92 Down -1.27 -1.26%
Chevron CAPS Rating: ****
IOC $49.50 Up +0.02 +0.04%
InterOil CAPS Rating: *
MRO $13.95 Down -0.30 -2.11%
Marathon Oil CAPS Rating: *****
RDS-B $53.39 Up +0.30 +0.57%
Royal Dutch Shell… CAPS Rating: ****
XOM $86.92 Down -0.17 -0.20%
ExxonMobil CAPS Rating: ****