by David Kranzler
Investment Research Dynamics
In my last issue of the Mining Stock Journal (Sept 15), I featured trading opportunities in three large-cap mining stocks plus I explained why a recent buy recommendation from the National Inflation Association was a nothing more than a pump-n-dump operation.
Although the sell-off in AG stock was attributed to a highly negative report issued by Kerrisdale Capital, the truth is that the recent price correction in AG is a function of AG revising its full-year production outlook lower plus the correction in the overall sector. In fact, the short report issued by Kerrisdale – headed by a sleazy financial operator who was recently busted for a DUI and cocaine possession – was nothing more than a fraud-filled hit-job:
I noticed several problematic errors in his analysis. In fact, Adrange’s thesis and conclusion is an analytic disaster. I don’t know whether or not this guy has an experience with mining stock analysis but it was clear to me that he does not know what he is doing in this sector. Perhaps the most glaring error – in fact I have to wonder if it was intentional for the purposes of supporting his thesis – is that in valuing AG vs. other miners based on resources, he only uses measured & indicated resources. This is outright incompetence or fraud, or both. – Mining Stock Journal, September 15, 2016.
I further lay out the case for why the current sell-off in AG stock is a great buying opportunity plus I recommend two other large-cap stocks (note: the Mining Stock Journal primarily focuses on relatively unknown junior exploration companies).