On Monday Feb 27th, as we who are dumb enough to care about junior mining companies already know, Batero Gold (BAT.v) released a disappointing 43-101 resource report for its Batero-Quinchia project in Colombia. The stock plummeted that week and by the close of March 1st (four days later) it has dropped from the $2.60 or so of the previous weeks to close at $1.20.
That was when Hoesgen Investment Partners, a subsidiary of Canaccord Wealth Management, sent out this letter to its clients:
From: Hoesgen Investment Partners [mailto:firstname.lastname@example.org]
Sent: Friday, March 02, 2012 XXXXXXX AM
To: Undisclosed recipients:
Subject: Batero Gold Corp (BAT.V) | TDV PublicationGood Afternoon,Please find attached a report titled, “Batero Undeservably Plummets on Whittle Pit Shell Misunderstanding” published by Jeff Berwick and Ed Bugos of The Dollar VIgilante. We encourage you to read this publication.For more info about TDV, please visit their website at http://www.dollarvigilante.com/Thank you,Hoesgen Investment Partners | Canaccord Wealth Management
D: 604.643.0293 | F: 604.643.1851
Providing complete and unique financial services
Along with that mail, Hoesgen Investment Partners sent its mailing list the PDF you can read on this link here but if you don’t feel like downloading the document, we can sum up by saying it was one-sided bullshit and ended up by urging its readers the average down on BAT.v at $1.20 or so. With all that in mind, consider the following:
- Since that mailer went out, BAT.v has dropped another 28.3% to trade as your author writes at $0.86 (it was under 80c earlier today, too).
- Do you consider a website with a name like “The Dollar Vigilante” to be a place where you’re going to find expert opinion on geology and mine engineering?
- Canaccord has under its umbrella plenty of qualified geologists, any one of which in a better position to comment on the technicalities of the BAT 43-101
- Canaccord has been pumping the merry hell out of BAT.v for over a year.
That The Dollar Vigilante gives out crappy information to its goldbug conspiracy theory loving subs’ list is one thing. To see a full service brokerage use the worthless and utterly erroneous analysis as a way of grasping at straws over a bad trade gone wrong and try to get its client list even longer in this obviously failed company is quite another. If the brass at Canaccord had any integrity or backbone they’d track down the employee that sent the TDV article out to their client list and it’d be Go To Woodshed, Go Directly to Woodshed, Do Not Pass Go, Do Not Collect $200.
Fortunately for him/her, there’s a distinct lack of integrity and backbone at Canaccord at all levels, not just theirs.