3 Reasons to Sell InterOil

Before you go, we thought you'd like these...
Before you go close icon

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.

The article 3 Reasons to Sell InterOil originally appeared on Fool.com.

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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners