Radical,
I hope you did not short based only on the "falling line" analysis. If so, you may want to do some research.
Patterson's Stock Brokers came out a few weeks ago with a $2.31 price target, but I think that is about half what KAR is worth based on existing assets.
Facts are that Karoon is trading about 20 cents below its cash value. In addition, Karoon has 100% ownership of three oil discoveries offshore Brazil with 128,000,000 barrels of reserves, which they are in discussions to sell 50% to a sizeable oil company called DEA. DEA is merging with a Wintershall, so the option to buy 50% will be held by one of Europe’s largest independent oil and gas producers. At s ales price of even $5 USD per barrel of reserves 128,000,000 barrels is worth $640 million USD or $3.35 per share. Statoil recently bought producing Brazilian offshore reserves for about $10/barrel.
Here is the Financial Times article confirming DEA and Wintershall approx. $12 Billion deal ...
https://www.ft.com/content/deeda29a-db7c-11e7-a039-c64b1c09b482
BASF and DEA agree multibillion oil and gas merger - Merged entity Wintershall DEA will initially be two-thirds owned by chemicals group
December 8, 2017
BASF, the German chemicals group, has agreed to merge its Wintershall energy unit with rival DEA in a multibillion-euro deal to create one of Europe’s largest independent oil and gas producers. DEA, also based in Germany, is owned by LetterOne (L1), the investment vehicle of Russian billionaire Mikhail Fridman, and chaired by Lord Browne, the former chief executive of BP.
The merged entity, to be called Wintershall DEA, will initially be two-thirds owned by BASF and one-third by L1 Energy, with a plan to list the company through an initial public offering “in the medium term”. Lord Browne, who oversees LetterOne’s energy investments, said the deal would give the combined businesses “the scale needed to generate sustainable growth long into the future”. BASF and LetterOne said they signed a letter of intent on Thursday and aimed to close the transaction in the second half of next year (2018). In 2016, DEA and Wintershall had combined revenues of about €4.5bn and earnings before interest, tax, amortisation and depreciation of €2.2bn, with production of about 600,000 barrels of oil and oil equivalent per day and reserves of 2bn barrels.
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