Thursday, September 8, 2011

Props to Andrew Kaip of BMO

This humble corner of cyberspace spends some of its time hauling Canadian anal ysts over coals for various well-documented reasons, but this time we're singling out one of you guys for a damned good call made last week. When Silvercorp (SVM) ( announced it was under a short attack last week, told of an anonymous letter against them delivered to The OSC and set out its defence argument in the NR of last Friday morning, Andrew Kaip of BMO was lightning fast to step up to the plate. That very morning, right at the time of the heaviest selling and price drop, Kaip sent a note to BMO clients reiterating his buy call on SVM, ending his message with the words "...BMO reiterates SVM’s Outperform rating and views weakness in the share price as a rare buying opportunity." Let's look at the SVM price chart over the last ten days:

Yep, Kaip absolutely freakin' nailed it and any of his clients acting on his call could have made one of the easiest 20% differences of their investment lives. For sure SVM came in for plenty of support that weekend from brokerages and analysts, but Kaip was there for his crew at the lows of Friday and nailed the big win. What's more, IKN understands that Andrew Kaip was thousands of miles away from his office too, as Friday morning found him on a site visit to a mining company in Mexico.

So props to you, Kaip. You went the extra mile, your call on SVM Friday was money and I hope your clients appreciate that.

disclosure: No position in SVM and never had one in the past, either. Not my geography