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They tend to be small ones, but when they come along they're windows on how plug dumb stupid these people truly are. Our example today is Tanya Jakusconek of Scotia and her decision to drop her price target for Goldcorp (GG) (G.to) from U$28.00 to U$27.50. Like I say, a small thing perhaps but it's the reason behind the call which screams teh stooopid. GG's price target is lowered by Scotia because it sold its holding of Tahoe Resources (THO.to) (TAHO) in the now-closed secondary.
Therefore we can state that according to Ms Jakusconek and Scotia, by selling 58,051,692 shares of THO at CAD$17.20 apiece Goldcorp deserves to suffer even though the shares are already C$2 lower than the price GG got, and the difference is beneficial to GG to the tune of C$115m (14c/share), it's a bad decision and GG needs to be marked down for it. Or perhaps Ms Jakusconek and Scotia know more about the valuation of Tahoe than GG, even though ex-GG head Kevin MacArthur chairs the thing and Goldcorp spun out the Escobal asset from its own structure in order to create it. Or maybe unicorns. Or maybe these people just make this shit up as they go along and then find a reverse-engineering reason or excuse to change a price target.
Oh no, that last one never. Never happens in Canadian sellside brokerages. Never.