This came to me via email moments ago…:
“Shares of First Majestic Silver (AG) gave us a slight scare last Thursday when the stock dropped 10% at the opening. There wasn’t any immediate news to account for the move. But later in the day, it was reported that Kerrisdale Capital (a Canadian money management firm) issued a bearish report on the stock.
I don’t know anything about Kerrisdale Capital. So I won’t comment on the value of its research. But the Kerrisdale website does provide access to its research reports, so I can tell you that only one of its previous four short calls has panned out…
Not counting last week’s negative report on AG, all four of Kerrisdale’s previous short-sale recommendations got hit hard on the day of the recommendation. But they all also recovered immediately from the move. Only one stock is lower today than it was at the time of Kerrisdale’s recommendation to short.
With that track record, I’m not worried about Kerrisdale’s bearish report on First Majestic.
It only took one trading day for AG to recover from the initial decline. And after yesterday’s rally, shares of AG are up about 7% since Wednesday. Let’s continue to hold this position in anticipation of larger gains.”
I had also never heard of Kerrisdale, and my own source, Thomson-Reuters, does not agree with them. I wrote all this up last week, and you can find it below. As a result of further reflection, you know I bought back in to First Majestic Silver (AG) just yesterday morning.
Here’s to your accumulation of real wealth!
Harold F Crowell