So if you invest in Australian stocks - then stop and look.
This is a situation that doesn’t come all that often and it’s quite interesting.
Oil in AUD terms is at 4 year highs while Karoon is at 4 year lows. Short interest is at 10% and over 80m shares. That means it will take 20 trading days to cover.
karoon has had its production issues for sure, but it’s still estimated to produce more than 10m barrels of oil … and at 80+ oil ($130 in aud) means significant and I mean significant free cash flow.
if oil keeps squeezing towards 100 then this will become very interesting indeed because at 100 oil, karoon will generate half its market cap in cash flow! That’s right folks 50% of its market cap in cash flow in a single year.
even at current prices it will be close to 30%.
The spread between karoon and oil is so extreme that this can only go one way - and it’s to your advantage.
look at these charts and make your own mind up.
this is going to get interesting.
PB
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 (20min delay)
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Last
$1.93 |
Change
0.030(1.58%) |
Mkt cap ! $1.414B | |||
| Open | High | Low | Value | Volume |
| $1.89 | $1.93 | $1.87 | $6.740M | 3.528M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 5132 | $1.93 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.93 | 10693 | 2 |
View Market Depth
| Last trade - 16.11pm 08/08/2025 (20 minute delay) ? |
| KAR (ASX) Chart |