Great Panther Silver Limited (TSE:GPR) (AMEX:GPL) stock got downgraded just before the trading session today. To make it more confusing, preceding the downgrade a newsletter came out prompting to take a look at the impressive past performance of GPR.
GPR stock got downgraded by TheStreet.com from buy to hold. The key weaknesses mentioned as a reason include weak operating cash flow and poor return on equity.
This has put the efforts of another party in an awkward position. The name of Great Panther Silver Ltd. appeared in a newsletter published by Lebed.bid. No compensation was paid for this specific notification, but both parties had business relations in the past. For some time Lebed provided investor relations services to Great Panther under a $20 thousand contract, which is now expired. It can only be speculated if the companies will renew the contract in the foreseeable future.
The newsletter worked as a reminder to subscribers of how much the GPR stock gained since the first notice issued by Lebed. Considering how short and uninformative it was, the notification shouldn’t raise much of a reaction on the market.
The newsletter informs that the stock gained over 600% since first mentioned by the promoter in late 2009. While this holds true, the recent performance of this same stock was far from stellar. GPR spent the past 6 months in a loose consolidation phase and is currently 31% down for the period.
