You might have read the recent article by Bleeker street research about Pershing Gold
This article attempts to paint a grim financial future for a company called Pershing Gold, claiming that the company will fall by 70-80% or more.
The main point of the article is that Pershing Gold is a "stock fraud" that is being promoted by a man named Barry Konig.
The article stays that Konig is a "serial stock promoter" guilty of "hidden ownership, undisclosed stock sales, installed puppet CEOs and false press releases for paid stock promotions."
There are many flaws with this article that I just want to bring up for the community.
First of all, you'll notice that the article is almost entirely a smear on Konig's character. There are no attempts made to actually show that Pershing's Finances are in poor shape. Instead, the article makes a number of unsubstantiated claims about Konig to try to make the stock look bad.
For instance, the article claims that Mr. Konig "controls" Pershing Gold. But in fact, Mr. Konig does not even have an executive-level position at the company. He owns a significant number of shares, and does sit on the board, but he does not wield a level of influence at the company that would make it possible for him to totally control the company to his own ends.
Second, this piece says that Pershing bought a mine for $12 million that hadn't been mined successfully since the 1980s. But in the very same article, we see that in fact, the company owns much more explorable land than just that initial mine. The article makes a misleading statement about what assets Pershing owns in order to make the company's market position look worse than it is.
Third, as the authors state, they are short this asset themselves. This is a vested interest and makes the article highly suspect. They are accusing Mr. Konig of trying to pump up the price to profit on the upside, and here they are writing articles when they admit openly they hold a short position. Are they maybe trying to deflate the stock's price to THEIR benefit? Projection, anyone?
