Take physic, pomp

John Kaiser skewers the Casey BS show

Still on the road, but this one can be done quickly
I was sent this, written by John Kaiser of Kaiser’s Bottom Fish, by A. Reader. Well worth consideration by anyone who reads mining newsletters

Missing the boat and even being dead wrong, however, has not stopped the Casey
gang from tooting its horn in self-congratulation, a having your cake and eating
it habit that Stockwatch’s John Woods delights in documenting, much to the
displeasure of the Casey Research team. In a recent egregious example Louis
James of the Casey team reiterated his sell recommendation of Rare Element
Resources Ltd, which he had originally recommended at $1.20 on October 19, 2007.
After watching it sag below $0.50 during 2008 and then jump in late May 2009
after Jim Dines recommended the stock, the writer on June 1, 2009 recommended
“recovering your original investment” at $1.41 to his readers, which meant
effectively selling most of the Rare Element position bought at the original
$1.20 recommended price. After Rare Element shot over $4.50 Louis James
described his pick as being up 228.3% at $3.94 and urged any readers who have
not already done so to take profits. Chalk up another big score on behalf of the
Casey stock-picking team. But in an even more cynical practice widely used in
the group’s energy report, the Casey team will write up some expensive oil
stock, recommend buying it with a “stink bid” as much as 50% below the market
price, which is in effect a short sale recommendation, and when the stock moves
higher instead, they “close the position” while listing the stink bid price as
the initial recommendation price. For example, in June the energy group
recommended that readers buy Linn Energy LLC at $13 even though it was trading
at $20, and when the stock instead moved to $24, they closed out the position in
October which in the report is listed as “initially recommended at $13 in June
2009”. John Woods probably goes to bed every night praying, “please, please,
Casey Research, please sue me”.

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