Mining Company's Stock Price Is Ridiculously Overvalued After Paid Promotional Campaign
-First Majestic trades at a uniquely ludicrous multiple of the value of the precious metals it owns, with 70-80% downside
-Sell-side estimates, comparisons to peers, and even First Majestic's own internal models confirm that the company is massively overvalued
-First Majestic and an affiliated company have recently hired stock promoters to hype their prospects to an audience of retail investors
-First Majestic's founder and CEO is a former professional stock promoter, with ties to a defunct Panamanian brokerage firm implicated in pump-and-dump scams and insider trading
NEW YORK, Sept. 1, 2016 /CNW/ -- Kerrisdale Capital, a private investment firm, has released a report on First Majestic Silver Corp. (AG / FR), a $2 billion mining company headquartered in Canada and focused on silver production in Mexico. First Majestic trades at 5x its net asset value – completely out of line with other miners as well as its own longer-term history. Kerrisdale believes that First Majestic's real value is 70-80% lower than its current price and that the stock has temporarily benefited from a promotional campaign funded by the company itself.
The full report can be found at http://kerr.co/ag.
Kerrisdale has a short position in First Majestic and stands to benefit if its share price falls.
Conference Call Schedule
Kerrisdale will host a conference call on Thursday, September 1, 2016 at 4:00pm EDT to discuss the First Majestic report.
To participate in the conference call, dial 888-567-1602 (US and Canada) or 862-255-5346 (international) and reference the Kerrisdale Capital call.
A replay will be available following the call at http://kerr.co/ag-sept1.
About Kerrisdale Capital
Kerrisdale Capital Management, LLC, is a fundamentally-oriented investment manager that focuses on long-term value investments and event-driven special situations.
Kerrisdale Capital Management, LLC is a member of the Financial Industry Regulatory Authority, CRD number 160804.
SOURCE Kerrisdale Capital Management, LLC