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7/20/17

Asanko Gold (AKG): Canaccord's worldbeating brass neck

Perhaps because I've been watching the scumbaggery that goes on inside the Canadian sell side world for too long, there's really not much those thieves in suits can do to leave me gape-mouthed these days. But the nefarious stunt Canaccord pulled on its own clientele this morning is an exception that proves my cynicism rule. Seriously, this one is so two-faced and deceitful I almost stood up and applauded the computer screen on finding it out. Consider the following:

Yesterday July 19th, Asanko Gold (AKG) announced its 2q17 production results and on receipt of the news, Canaccord's Rahul Paul sent a note to clients reiterating his C$5.00 target price and "Buy" rating. Here's the top box of his note:


Today, just one day later, Canaccord cut its target price price on AKG from C$5.00 to C$2.75. But Canaccord didn't do this in a specific note, it sneaked it in via a macro sector update report. In this report covering a multitude of companies, the only segment on AKG was this one (circled in red):


This is brass neck of the highest level. And when you consider the three "reasons" Canaccord gives for this massive downgrade it gets even better because numbers (2) and (3) were already known to both Canaccord and the whole world beforehand, there was no reason whatsoever to ignore them in the July 19th update (just one day before). And of the third reason, the (1) change of house gold price deck, if we check the new ratings and target changes on the whole deck of Canaccord price targets for smallcap/midcap miners there is only one that stands out:


And sticks out like the proverbial sore thumb. While all other stocks are adjusted between 0% and 17%, Asanko gets a whopping 45% drop to its target price (and wonderfully, it's still a "buy"!).

To cap it all, there are some of you who are bound to remember back in February 2017, when AKG finally came clean with its manifold problems, starting with the Nkran reserve downgrade. At that time Rahul Paul called the issue "A speed-bump, not a roadblock" and UPGRADED (!!!) AKG to buy with a $5.00 price target.



At that time AKG was a $3.90 stock. Today Nahul Paul has decided that AKG is worth $2.75. Nahul Paul will of course keep his job, because he's being a good little boy and doing exactly what corner office is telling him to do. You can expect his "downgrade to hold" on AKG about a day after it goes into bankruptcy protection.