Author: Anthonette Clerigo

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Article: Northern Dynasty Minerals (NAK): Looming Dilution Potential, 6 More Downside Risks

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Northern Dynasty Minerals (NAK): Looming Dilution Potential, 6 More Downside Risks

The Street Sweeper’s Blog, 16 August 2016

Northern Dynasty Minerals (NYSEMKT:NAK) proposes to build a massive copper and gold mine in Alaska’s Bristol Bay headwaters. But opposition has stretched over the past decade to block any advancement. Meanwhile the downside risks are piling up, including:
*Momentum trading influences the stock price in this company with “going concern” issues.
*A major investor has recently sold 4 million shares.
*The same investor recently promoted the stock on TV.
*Low cash, high burn are forcing NAK to issue stock. More dilutive shares will be ready for sale in October.
*Local opposition is stronger than ever, according to one observer.
*Copper prices are low amid oversupply concerns.

After a decade of controversy over its proposed Pebble mine, Northern Dynasty Minerals (NAK) is still absolutely nowhere. At first glimpse, unwary investors might expect significant news because the stock has practically doubled over a month to unsustainable levels.

The Pebble property covers 153 square miles of land in Alaska, taking in at least 15 square miles for the proposed mine operation and tailings ponds. The project would place one of the world’s largest copper and gold mine against the world’s largest salmon fishery and environmental concerns.The project has not yet entered the permitting phase.
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Article: Nymox Pharmaceutical Corporation Investigated For Securities Fraud By Block & Leviton After Report Reveals Pervasive Misconduct By The Company

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Nymox Pharmaceutical Corporation Investigated For Securities Fraud By Block & Leviton After Report Reveals Pervasive Misconduct By The Company

PRNewswire, 11 August 2016

Block & Leviton LLP (www.blockesq.com), a securities litigation firm representing investors nationwide, is investigating whether Nymox Pharmaceutical Corporation (“Nymox” or the “Company”) (NASDAQ: NYMX) and certain of its officers and directors violated federal securities laws.

Nymox shares plummeted nearly 41% on August 10, 2016, after an article titled “Nymox: This Offshore ‘Biotech’ Promotion Will Go To Zero (Yes, Zero)” was published on the investment research site Seeking Alpha, reporting that Nymox has and continues to mislead shareholders about the Company’s prospects, while “dumping millions in stock without making timely SEC disclosures.” The revelation of Nymox’s fraudulent conduct has caused tens of millions in losses to Nymox investors.
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Article: Raging Capital Reveals New Long Position (CAVM) and Discusses 3 Short Positions (VRX, LC, PMTS) in Q2 Letter to Investors

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Raging Capital Reveals New Long Position (CAVM) and Discusses 3 Short Positions (VRX, LC, PMTS) in Q2 Letter to Investors

GENE GUZUN, 08 August 2016

Hedge funds’ quarterly 13F filings are quite useful for retail investors seeking to invest like wealthy and successful money managers, but their quarterly letters to investors are even more informative and useful. Raging Capital Management LLC, an investment firm launched by William C. Martin in April 2006 with capital from friends and family, recently sent a quarterly letter to investors discussing the firm’s performance and its biggest contributors to that performance.

New Jersey-based Raging Capital Management, mostly known for its activist investment strategy, invests in both emerging growth stocks and deep-value investments. The activist asset manager generated a net-of-fees return of 5.1% in the second quarter of 2016, bringing tits return for the first half of the year to an impressive 14.0%. Mr. Martin’s investment firm delivered a compound annual growth rate of 21.2% since inception through the end of the second quarter, approximately three-times the 7.1% return generated by the S&P 500 Index over the same time span.
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Article: Asanko fires back after allegations from K2 Investment

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Asanko fires back after allegations from K2 Investment

MATTHEW KEEVIL, 20 July 2016

Asanko Gold (TSX: AKG; NYSE-MKT: AKG) has reported its inaugural production quarter at its Asanko gold mine in Ghana, but it is also busy countering criticism about its technical reporting from Toronto-based hedge fund K2 & Associates Investment Management. Asanko hit commercial production at its namesake operation in early April after completing the US$295-million development ahead of schedule. Asanko’s first phase of mining will focus on the Obotan project, which includes the Nkran pit and four satellite deposits.

This first phase of production is expected to total 2.34 million oz. over a 12.4-year mine life based on reserves of 2.5 million oz. gold hosted within 36.7 million tonnes grading 2.15 grams gold per tonne. Asanko is scheduled to produce 190,000 oz. gold annually.
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Article: Asanko Gold’s (TSE:AKG) Q2 Results Will Be One to Watch

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Asanko Gold’s (TSE:AKG) Q2 Results Will Be One to Watch

SmallCapPower, 19 July 2016

Asanko Gold Inc. (TSE:AKG) is a gold junior that seemed to have been doing everything right. Yet, a Toronto-based hedge fund recently questioned the calculation of the Ghana gold miner’s resource. Asanko has yet to issue any news in response to these claims, so the release of its second-quarter production and conference call on Wednesday, July 20, 2016, should be an event of great interest to its shareholders.

On June 29, 2016, the Financial Post reported that K2 & Associates Investment Management alleged that Asanko’s gold resources “don’t add up” and appear to be over-inflated by a factor of two. It must be noted that K2 has a short position in Asanko and, thus, has much to gain if the Company’s stock price were to fall.
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Article: Short seller Cohodes targets yet another Canadian firm: Exchange Income

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Short seller Cohodes targets yet another Canadian firm: Exchange Income

Jennifer Ablan, 05 July 2016

Short seller Marc Cohodes, who has famously bet against the shares of six Canadian-based companies including Valeant Pharmaceuticals International Inc and Home Capital Group Inc, said on Wednesday that he is targeting yet another Canadian firm – Exchange Income Corp.

Cohodes told Reuters that Exchange Income – a Winnipeg-based company focused on opportunities in aerospace and aviation services and equipment, and manufacturing – does not generate enough cash to pay the juicy dividend it provides investors. At about C$33 per share, Exchange Income commands a market capitalization of $1 billion.

Cohodes, who worked at a short-selling hedge fund but now raises chickens in California and invests his own money, has targeted Valeant, Intertain Group Ltd, Concordia International Corp, Home Capital, Equitable Group Inc and Badger Daylighting Ltd. Cohodes told Reuters last month that he is keeping his short position on the Canadian lender Home Capital despite a capital infusion from Warren Buffett’s Berkshire Hathaway Inc .

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Article: Hedge fund claims 90% downside potential at Asanko Gold

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Hedge fund claims 90% downside potential at Asanko Gold

Peter Koven, 29 June 2016

Gold miner Asanko Gold Inc. has come under attack from a Toronto-based hedge fund that claims its stock price could plunge 90 per cent. The main allegation from K2 & Associates Investment Management Inc. is that Asanko’s gold resources “don’t add up” and appear to be over-inflated by a factor of two. K2 has a short position in Asanko, and in the grand tradition of short sellers, the hedge fund published its report on the company on a public website, allowing anyone to download it.

The strategy is reminiscent of previous short-seller attacks on Chinese-Canadian firms Sino-Forest Corp. and Silvercorp Metals Inc., which were highly effective in driving down the stock prices of the targets. However, this short report only had a minor impact. Asanko shares dropped five per cent on Wednesday, closing at $5.17 on the Toronto Stock Exchange.

“We thought it was important for our work and opinions to be entered into the public conversation,” K2 founder Shawn Kimel said in an emailed response to questions. He noted at least nine other groups are publishing opinions on Asanko and that it is the largest short position in K2’s precious metals portfolio.
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Article: CIBC responds to $1M sexual harassment lawsuit launched by ex-worker Diane Vivares

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CIBC responds to $1M sexual harassment lawsuit launched by ex-worker Diane Vivares

The Canadian Press, 18 May 2016

The CEO of CIBC sent a note to all employees Wednesday, reiterating the company’s non-tolerance for workplace harassment after a former worker filed a wrongful dismissal lawsuit against the bank and a former executive director that alleges she was sexually assaulted and harassed. Diane Vivares, a former associate in the bank’s equity markets group, is seeking more than $1 million in damages from CIBC World Markets and Kevin Carter, a former executive director at the bank. In a lawsuit filed with the Ontario Superior Court in December, about two months after she was let go, Vivares alleges Carter sexually assaulted her at a company Christmas party in 2007 by shoving his hand down her skirt twice.
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Article: LAKEWOOD CAPITAL 1Q16 LETTER TO PARTNERS: FOUR SHORT IDEAS

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LAKEWOOD CAPITAL 1Q16 LETTER TO PARTNERS: FOUR SHORT IDEAS

ValueWalk, 10 May 2016

In the quarter ended March 31, 2016, the Lakewood Capital fund recorded a net loss of 0.9%. At quarter end, the fund’s equity exposure was 77.0% long and 44.0% short for a net equity exposure of 33.0%. In addition, the fund was 4.0% long and 0.2% short fixed income securities for a net fixed income exposure of 3.8%.1 The top five positions constituted 23.4% of equity capital and the top ten positions constituted 41.0% of equity capital.

The Lakewood Capital fund generated a net loss of 0.9% in the quarter. Although the fund’s long and short positions on average ended the quarter in roughly the same place they began, the start of 2016 was one of the most volatile and tricky periods we have seen in years as underscored by a 16% mid-quarter decline in the Russell 2000 Index. Defensive sectors like consumer staples, telecommunications and utilities performed very well in the quarter as record low interest rates pushed investors to bid up shares in companies they perceive generate stable cash flows while most other sectors languished. Long equity positions generated a -1% return on capital, hedged long equity positions generated a -5% return on capital, short equity positions generated a +1% return on capital and fixed income positions generated a +2% return on capital.
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Article: Great Panther Silver Defends Itself Against StreetSweeper Allegations

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Great Panther Silver Defends Itself Against StreetSweeper Allegations

Nicholas Donato, 02 May 2016

Earlier Monday, TheStreetSweeper issued a report saying Great Panther Silver Ltd GPL 0.13% was an overvalued mining company set perfectly to “cave in.” The notable short seller listed six items they believe warrant a drop in current shares.

Enlisting National Inflation Association to promote the stock. Rodman & Renshaw raised their price target from $1.10 to $1.50 per share, and then financed a deal for Great Panther six days later. The lack of institutional interest in the company. StreetSweeper believes it’s “fool-hardy” to risk millions without reserve estimates for any of company’s mines or projects. The market missed a negative news event where the company dropped out of a key project, the Guadalupe de los Reves. StreetSweeper believes even a slight pullback in silver would have a drastic effect on Great Panther stock price.
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Article: StreetSweeper’s Short Thesis On Almaden: Stock Is ‘Fool’s Gold

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StreetSweeper’s Short Thesis On Almaden: Stock Is ‘Fool’s Gold

Jayson Derrick, 19 April 2016

Shares of Almaden Minerals Ltd. AAU 0.08% were trading higher by more than 9 percent on Tuesday, despite The Street Sweeper stating in a new research report the company’s stock is “fool’s gold.”

Almaden Minerals saw its stock rise on misconceptions surrounding a “highly speculative” gold mine project in Mexico (Ixtaca) to cost more than $1 billion, The Street Sweeper’s Sonya Colberg wrote. Meanwhile, the company only has a “measly $2-or-$3 million in the kitty,” or a “tiny, tiny sliver” of the amount it would need to finance any mining projects of such a large scale.

Almaden announced back in October a plan to secure financing to acquire a mine in Alaska. The company pitched a $6.5 million option deal to acquire the mine and argued that it will reduce its Ixtaca ramp costs by $70 million – a figure that was an “arguably highly inflated guesstimate.”
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Article: Amidst Allegations of Financial Misconduct, Osiris CEO Resigns

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Amidst Allegations of Financial Misconduct, Osiris CEO Resigns

Mark Terry, 05 February 2016

Columbia, Md.-based Osiris Therapeutics, Inc. announced that Lode Debrabandere, president and chief executive officer, has resigned for personal reasons. Dwayne Montgomery, currently the company’s chief business officer, will act as interim chief executive officer. Frank Czworka, presently vice president and general manager of wound care, will step up as chief operating officer.

The board of directors will start a search for a permanent chief executive officer and has hired an executive search firm to assist in the process. The company indicates it will consider both internal and external candidates. The company has had some problems lately. The company is currently transitioning from research to a commercial company. A Seeking Alpha report published on Jan. 15 cited several red flags. One was that the company’s chief financial officer, Phil Jacoby, resigned in September, replaced by Gregory Law.
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Article: Osiris Therapeutics counters report questioning sales

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Osiris Therapeutics counters report questioning sales

LORRAINE MIRABELLA, 23 January 2016

Its stock is off two-thirds from its summertime high, its auditor quit and it’s restating earnings. The past few months have not been friendly to Osiris Therapeutics, a Columbia-based company that’s considered one of the state’s most promising biotechnology firms.

Osiris, known for its stem cell-based products, is in the midst of transitioning from a research firm into a commercial enterprise and making strides with products such as Grafix, a human tissue product that treats chronic wounds such as foot ulcers. But after showing much promise, Osiris, which takes its name from the Egyptian god of death and regeneration, faces uncomfortable questions about its recent missteps. Several shareholders have sued and postings on financial advice websites voice continuing doubts about its sales and financial reports.
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Article: Goldman Sachs to pay $15 million to settle SEC stock lending case

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Goldman Sachs to pay $15 million to settle SEC stock lending case

Suzanne Barlyn, 15 January 2016

(Reuters) – Goldman Sachs & Co GS.N will pay $15 million to settle civil charges that its securities lending practices violated federal regulations, the U.S. Securities and Exchange Commission said on Thursday.

Goldman made improper representations to customers who requested that the firm locate certain stocks for short selling, the SEC said. Goldman told those customers that it had arranged to borrow, or believed it could borrow, the security to settle the short sale, a process known as “granting locates.”
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Article: NovaGold Lower Slightly After StreetSweeper Report

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NovaGold Lower Slightly After StreetSweeper Report

Benzinga, 07 January 2016

Shares of NovaGold Resources Inc. (NYSE: NG) were trading lower by more than 1 percent on Thursday following a negative report by The Street Sweeper on Wednesday. The Street Sweeper’s Sonya Colberg argued that while “there may be gold” in NovaGold Resources’ properties, investors “better not count” on the company “digging it out.”

Colberg noted that NovaGold owns 50 percent of 2 separate properties in Alaska (Donlin Gold) and Canada (Galore Creek). Meanwhile, the company is awaiting government approval for over 100 permits in its Alaska property while its Canadian property hasn’t seen any gold recovery despite numerous attempts since 2003. “Expected expenses are massive,” the report stated. ” The prospects are iffy. The risks are enormous. And the excavation route goes straight through investors’ wallets.”
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