For those of you keeping track, it is Great Panther Silver – 1, Seeking Alpha Blogger – 0. To say that we are surprised would not be true, we are not. For those who are just catching up, on Tuesday a blogger from Seeking Alpha posted an article which was not only a little bit nasty, but almost entirely unfounded. As of the time of this writing, the blog post from Seeking Alpa is no longer available, which is not surprising because there was limited factual information provided. And while the original post is no longer available, there was such a strong response to it, Christopher Barker of The Motley Fool, crafted a response, which we believe sets the record straight. Below is an excerpt of Chris’ rebuttal, a complete copy of which is available here.
“As I watched shares of Great Panther Silver (AMEX: GPL ) take a bit of a dive Tuesday — after a sharply negative blog post crossed the wires replete with allegations and insinuations — I realized this was one of those key moments when retail investors would benefit from a clear and thorough restatement of the factual record.
As of this writing, the blog post in question has been taken down (here is the original link). Because truth matters, I am proceeding with my rebuttal nonetheless.
In Part 1 of my rebuttal, I offered investors a more comprehensive understanding of the company’s underlying story than that depicted in the aforementioned post. Here in Part 2, I will directly challenge the content of that now-stricken blog post.
First cracks in the foundation of an allegation
The piece sought to spin a tale of Great Panther Silver as some sort of pump-and-dump vehicle, but nothing could be further from the truth. Let’s begin with the fact that there was no dump!
In his post, the blogger alleged that Great Panther Silver executive chairman Kaare Foy had sold “all his 200,000 shares” in the company. Oddly, the source he linked to was a discussion-board post rather than an actual filing. I spoke directly with Foy on Tuesday, and he indicated that his “direct personal holdings in Great Panther actually increased at that time.” He also added that he “currently owns more shares in Great Panther than he did a year ago.” What the blogger in question might have discovered through a more thorough examination of the public record, as Foy avows, is that all of the share sales cited were for shares held indirectly by Foy’s investment company and were therefore wholly unrelated to his direct personal holdings in the company.”