Short seller Marc Cohodes now bets against Exchange Income Corp.
Jonathan Ratner, 05 July 2017
Exchange Income responded, calling the attack a “short and distort campaign” aimed at undermining the value of the company’s shares. “The short report was deliberately released immediately following the end of the company’s second quarter when EIC is in a quiet period, and is based on a number of statements, assumptions and opinions with which we strenuously disagree,” Exchange Income said in a press release. Cohodes said the company has increased its debt load by $427 million over the past five years, and issued more than $230 million of shares to fund its roughly $700 million deficit.
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Well-known short seller targets First Majestic Silver Corp
Jonathan Ratner, 01 September 2016
Canadian miner First Majestic Silver Corp. has become the target of well-known short seller Kerrisdale Capital Management. The hedge fund, founded by its chief investment officer, Vancouver-raised Sahm Adrangi, called the stock “absurdly overvalued” in a new report released on Thursday.
First Majestic, a Mexico-focused silver miner, has seen its shares climb nearly 250 per cent in 2016, as sentiment toward the mining sector rebounds along with precious metals prices. Kerrisdale, whose short-selling campaigns include ChinaCast Education Corp. in 2011 and DISH Network Co. in May 2016, believes First Majestic is “ludicrously expensive” relative to both its peers and its own history.
“This speculative frenzy – exacerbated by an ongoing, company-funded stock-promotion campaign – has gone too far: First Majestic’s valuation is now outrageously detached from reality,” the firm said in the report.
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Fighting back against DH Corp short sellers
Jonathan Ratner, 28 October 2015
Financial services firm DH Corp. is the latest Canadian company to come under attack from short sellers. The stock fell sharply on Monday after hedge fund Lawton Park Capital Management accused DH (formerly Davis + Henderson Corp.) of masking weakening performance with “desperate M&A and accounting tricks.”
DH has recovered some of those losses since, but Graham Ryding at TD Securities still sees a very attractive entry point given its current valuation. “The market reaction to short-seller concerns is misplaced,” the analyst told clients, raising his rating on DH to action list buy from buy.
Ryding also maintained a $47 price target on the stock, which represents upside of about 35 per cent, noting that his conviction in the company’s growth outlook and fundamentals is intact. DH management released its third-quarter results early in order to respond to issues raised by Lawton Park.
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