children of an idle brain

Regarding Jay Taylor and his “Buy Allied Nevada (ANV)” call on Feb 13th 2015

Please, if you would, compare the message contained in this post dated January 21st 2015 in which your author tried his very, very hardest to get you to stay well away from Allied Nevada (ANV) (ANV.to), with this post dated late last month that documented how newsletter writer Jay Taylor told the world they should buy ANV. But to put it succinctly:
  • IKN: Stay away from ANV, its financials are a disaster and it’s going under. All you need to do are two things: 1) look at the financials and 2) understand them. I even pasted out the balance sheet page for you that time, with notes scribbled on it and everything.
  • Jay Taylor: Buy ANV because he’d been talking with a “major shareholder” who was “baffled” by the recent price action at this company, one of the “most economic” in Nevada. Also while over there checking the post, notice how the word “myth” turns up while discussing the $500m debt.
People, this is beyond a joke. This is not funny. It is not something that should be ignored any longer. People like Jay Taylor have every right in the world to throw their own money down the toilet, but they are an active danger to the investment world due to their utter stupidity and numerical illiteracy if they’re going to pretend expertise on mining companies without having the first clue about how to read a company’s financials.
You don’t have to be the world’s best forensic accountant to be able to pronounce on a mining company, nobody expects you to be able to burrow down hard and fast on each line item. Hell’s bells I know that because at best I’m box standard average at reading financials. But there is a bare minimum of understanding and comprehension necessary about company financials these days and that’s just for the private, retail investor. You need to be able to open a P+L, open a statement of cash flows, open a balance sheet and at least be able to get a general idea of the financial health of your mining company, particularly the producers. For a retail investor to be totally ignorant about a company’s financial position is bad, for a so-called mining professional such as Jay Taylor to be able to recommend Allied Nevada LESS THAN A MONTH AGO to people that pay him money for advice is little short of criminal.  Jay Taylor and all those like him who offer the world investment advice without knowing anything about numbers need to be ignored forever, as of today.

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