The mission of every value investor is to buy a dollar for fifty cents. If only life were so simple. Such opportunities, if they arise, tend to be situations plagued by problems and uncertainty – not suitable for conservative investors but perfect targets for our Ideas Lab, where we highlight unusual opportunities with a wide range of outcomes.
The opportunity today is clear. Wannabe oil producer Karoon Gas currently sports a market capitalisation of $590m, or $2.40 a share, having fallen from highs of over $10 a share in 2011 and over $4 a share as recently as September.