Wednesday, April 13, 2011

Peter Kennedy of Stockhouse: Corrupt or just plain stupid?

Greystar Resources ( has had a lot of ink spilled about its predicaments recently, what with the denial of permits for its Angostura project in Colombia and the share price movements that have accompanied it. But no note has been as daft as the one written on by Peter Kennedy of Stockhouse and published on April 11th in its regular "Short Report" section.

Seriously, this guy is either on the payroll of large money or he's just downright stupid. In the note we get all sorts of stuff about how badly horrid's situation is and we even get pearls thrown such as a comparison of GSL to Crystallex (KRY) (even though the two operate in separate countries it's apparently telling people to avoid Peru mining projects because they're next to Ecuador, I suppose) and how...shock and horror!...GSL hasn't made anything in revenues recently...just like the other 1500+ mining companies in Canada that are calleed "explorers" I'd guess.

But the thing that makes the piece highly dubious, nay suspicious, is what Peter Kennedy leaves out. What he fails to mention is 1) the selling is all done (I mean, doesn't it strike you as odd that this Stockhouse hatchet job only appears with the stock is $3 a share? Where were you when GSL was $5 and getting pumped by Canaccord late last year, Peter?) and the stock is going up because of 2) the massive recent insider buying by Amber Capital, now up to what must be nearly 20% of shares out by wholesale buying of large chunks of GSL. And as IKN pointed out in late March there's a very reliable rumour out there that come the GSL AGM in May, shareholders will rebel and throw the whole board of directors out of GSL, a rumour that's been backed up by some crystal clear market signals since then.

Why try and batter the price down when it obvious that a large insto wants in to all the stock it can get? Why write baloney now, Petey? Why are you suddenly interested in an in-play TSX mainlisted company when all you normally write about is OTC scamjobs? Cui bono? Put simply, this Kennedy character is either being deliberately ignorant about a key factor in the GSL trading mix, he's stupid about markets and how they work or he's written what he's written to scare a few shares out of naive hands and into those of the large instos looking to change the management team at GSL at the cheapest cost possible. Which alternative is the real one? You be the judge.