In the world of finance theory, a credible suggestion that you are being forced to raise cash at exorbitant rates or are internally valuing your assets sharply below where the market appears to value them is traditionally a death sentence for your share price. The reasons for this are straight forward enough: Investors hate desperation but not as much as they hate making an asset play and being wrong on the value of the assets.
Then there is InterOil.
A Cairns, Australia- and Houston, Tx-based oil and gas producer that has been touting in one form or another a potentially epic find in the wilds of Papua New Guinea for more than a decade now, it recently raised cash at exorbitant rates and appears to be internally valuing its assets way below what the market appears to think they are worth.
The story is none too complicated: InterOil, a company whose shares are seemingly made of titanium, is paying rates for cash that only credit cards aimed at those with bad credit can obtain. Better still, the person pulling InterOil’s eyeballs out is its long-time sponsor and key investor, Clarion Finanz AG and its controversial chief, CarloCivelli.
[Civelli’s record as a broker, investor and promoter of a series of often troubled energy enterprises drives skeptics somewhere north of berserk. He and InterOil have loudly proclaimed that he is little more than an investor and advisor, although the power dynamics of this picture would seem to indicate otherwise. When having your company feted at the NYSE, it is customary to have the CEO or the company’s founder/guiding spirit ring the bell at the opening. Civelli, in the picture, is the one reaching over to ring the opening bell.]
To call InterOil a battleground stock is to be droll. The dispute over the proper level of its valuation and prospects in every sense of the word is analogous to the sanguinary trench combat of the First World War’s Western Front. Short-sellers, critics and investigative reporters raise more and more questions about management disclosures and candor but the stock continues to enjoy robust support. To follow through on…
News about the SEC subpoenaing Sam Antar for 37,000 documents in their investigation of a California-based research firm called the Fraud Discovery Institute, a company belonging to Barry Minkow, another criminal turned whistleblower, continues to spread. Here’s Henry Blodget’s take on the question of who and what the SEC should be subpoenaing. – Ilene
Some people think the company has discovered highly valuable oil and gas reserves in the jungles of Papua New Guinea and that the stock will continue to be a home run. Others think the company is basically a gigantic fraud.
Among those in the latter camp is reformed fraudster Barry Minkow, whose company Fraud Detection Institute sells research to big investors and is now engaged in trying to blow the lid off what he sees as an InterOil (IOC) fraud.
Barry Minkow (in earlier days)
As the SEC’s earlier investigations of shortsellers David Einhorn and Bill Ackman has demonstrated, when a company’s stock is performing well, as InterOil’s is, the SEC tends to go after the company’s critics and shortsellers rather than the company itself--a habit that is bewildering and infuriating to those who respect the fundamental work shortsellers do. And that seems to be what the SEC is doing in this case.
At Portfolio.com, Gary Weiss reports that the SEC has subpoenaed Minkow and Sam Antar [SEC Crazy Talk, below], another former convicted felon turned whistleblower, to find out what they have been saying about InterOil and other companies in their communications to shortsellers. In a twist that will frighten advocates of free speech and journalist shield laws, the SEC is also subpoenaing communications Minkow and Antar had with journalists.
The target of the investigation is a California-based research firm called the Fraud Discovery Institute. [Sam] Antar happens to be friends with FDI’s owner Barry Minkow. And, like Minkow, Antar is a noted whistleblower on white-collar crime and securities fraud. He’s a former fraudster who masterminded the Crazy Eddie stock fraud in the 1980s. Minkow served time in prison for the ZZZZ Best stock swindle, but now is an ordained minister and preaches…
Donald Trump, Marine Le Pen, Viktor Orban, Nigel Farage and myriad other populist, right-wing leaders sprouting over much of the Western World, are being tagged by the political ruling class as an ill-conceived, hate-fest phenomenon; and often portrayed as the mutant offspring of fascism. Such interpretation, however, might be only serving as ear plugs against the loud, real voices of people who fear a real th...
Note: The NYSE has released new data for margin debt, now available through June. We've updated the charts in this commentary to include the latest numbers.
The New York Stock Exchange publishes end-of-month data for margin debt on the NYX data website, where we can also find historical data back to 1959. Let's examine the numbers and study the relationship between margin debt and the market, using the S&P 500 as the surrogate for the latter.
The first chart shows the two series in real terms — adjusted for inflation to today's dollar using the Consumer Price Inde...
By Jacob Wolinsky. Originally published at ValueWalk.
Relypsa Inc (NDAQ:RLYP) — to be acquired by Galenica AG (VTX:GALN) for $32 per share in cash is soaring this morning up about 58 percent at the time of this writing in early morning. On the other hand shares of Galenica are down on the announcement by about 8 percent. What are the details of the deal? Here is what the sell side analysts are saying about the pharma news.
Relypsa Inc (NDAQ:RLYP) bid – analysts react
Relypsa will be acquired by Galenica for $32 per share, a 59% premium over the last closing price. We have thought that Relypsa would likely be acquired at some point, given the opportunity to grow Veltassa to be a significant commercial brand, ...
Companies around the world are exploring blockchain, the technology underpinning digital currency bitcoin. In this Blockchain unleashed series, we investigate the many possible use cases for the blockchain, from the novel to the transformative.
Most people agree we do not need to know how a television works to enjoy using one. This is true of many existing and emerging technologies. Most of us happily drive cars, use mobile phones and send emails without knowing how they work. With this in mind, here is a tech-free user guide to the blockchain - the technology infrastructure behind bitcoin...
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After a three-year bull run that more than quadrupled its value by its peak last July, IBD’s Medical-Biomed/Biotech Industry Group plunged 50% by early February, hurt by backlashes against high drug prices and mergers that seek to lower corporate taxes.
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Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts. After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.) Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.
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