Some analyst dude over at TD Securities named Daniel Earle needs to get a better grip on life. In his latest analysis on Ventana Gold (VEN.to) published yesterday, Earle sticks the title of "We're Not Worried, But Uncertain Timeline Warrants Discount" and then makes his claims.
Now, due to very large and bold-type legal stuff on the report (and I have no idea who you could e-mail to get a PDF copy of this report, oh no no no no) I'm not going to paste any direct words up from the report, but suffice to say that he thinks the risk of Ventana being stripped of its right to acquire Bodega from "bad boy" Gelvez&Co is very low. But until the legal wrangling is done he expects the company to trade at a large discount. Also, he's optimistic that the problem is resolved in 3-6 months. But then later the timeline isn't certain (!) so he's reducing his target to $12 from $15 but maintains his speculative buy recommendation.
Otto says: WHAT THE ****?
Seriously, this is the call of somebody who is crapping himself. As those in the trade would have instantly recognized when checking out the title of Earle's note, when an analyst says 'he's not worried but..." he's leaving a trail of bricks behind as he walks down the street.
We can argue over this-and-that part of the call here, but the basic, bottom line is that IF Ventana gets the land, according to Earle's previous call the company is worth $15. but IF VEN doesn't get the land, the company is worth zero, zip, nada. And therefore, maintaining your argument that the stock is a buy but dropping your target on what is no longer a nuanced situation but a straight binary call is the opinion of a sin-cojones analyst doing a disservice to his company and his clients.