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3/4/14

Checking up on Canaccord's view of Belo Sun (BSX.to)

This time last year (well in Feb'13 to be exact), this humble corner of cyberspace pointed out that Stan "Altruistic" Bharti's Belo Sun (BSX.to) was having far more permitting and licencing problems than the company or its brokerage whore sponsors were making out. This elicited a sharp response from Nicolas CampbellSoup, analyst at the Can of Corn, which made it to this post and went this way:
Belo Sun Mining (BSX:TSX, SPEC BUY, Target: C$2.50): The incakola newsletter/blog issues a negative comment on Belo Sun's Volta Grande project stating that the Federal Public Ministry recommends the Para State Secretary of the Environment does not permit the Volta Grande project. We would note that permitting in Brazil is done on a state level not the federal level. Further, the link on the blog article actually recommended that the license be granted only after impact studies and consultations with indigenous peoples are done (and this is part of the normal permitting process). This newsletter has a track record of incorrectly representing facts in order to put a negative spin on mining stocks. In the past, the author has made similar attacks (but by mis-stating facts) on other stocks such as Argonaut Gold. The newsletter does have a bit of a following so this may cause some concerns but we would be buyers on weakness.

At the time BSX was trading at $1.40 or so. Today it's at 45c and yes indeed, it was and still is plagued by a whole bunch of permitting and community risk issues. So if you pass by the Canaccord stand at PDAC today, you may like to ask Nicolas CampbellSoup whether his view is now more aligned with that of IKN's. Or whether he took the opportunity to tell his Canaccord clients to "buy on weakness" at $1.20. And $1.00. And 80c. And 60c. And 50c. And 45c.

Oh wait...he doesn't work there anymore. Wonder why that might be?