Baron - As Karoon progresses locking in the firm value of the Brazil field, we will find more investors of small and mid cap funds looking for an investment opportunity.
These investors will only step out with fund investment when they know the potential return on investment is fairly stable. Just the opposite of short term investors which are looking for a fixed profit trading point. Both will start showing up soon as the field value is determined and a solid production plan can be established of proven assets. This is what Karoon needs and Bob will be making efforts to have this group of investors informed.
I expect we will see a large flux in the volume with buys and sells as these investors establish their plans for Karoon investment.
The big cap investors will be watching (and Bob will be working with these investors) and we will see more big buys probably in the new business year of the investor funds. We will have a good handle on Apache drill results at this time. Remember the larger cap investors want to show profitability, investment security and assured growth projection on their investment. These will not be short term plays.
IFL Price at posting:
$8.96 Sentiment: None Disclosure: Unspecified
KAR Price at posting:
$2.94 Sentiment: Buy Disclosure: Held
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