A few weeks back we wrote a post called “Numbers don’t lie”. Were we wrong?
Nah. In the words of Mark Twain, “Figures don’t lie, but liars figure.”
In what alternate universe could someone walk into a bank, ask for money, and then provide financial numbers that are 3 or more months old? Apparently the Junior Mining universe is THAT alternate universe.
We gathered the “Corporate Overview” pages from the past 3 months of Faraday’s presentations. This includes November 2023, December 2023 and January 2024. It is amazing that their “Market Capitalization” and “Cash & Equivalents” haven’t changed. That’s because they are using November and September numbers for all 3 months. We bet when Faraday releases the February presentation… you guessed it, November and September numbers will still be used.
What has changed? The number of analysts covering Faraday. That number has dropped from 5 in November to 3 in January. What does that mean? Well, according to Investopedia:
“an analyst can drop coverage of a particular stock for various reasons. This may include switching firms or if it becomes too difficult to predict the company’s future earnings. “
With some quick research we found Alex Terentiew was still with Stifel in Nov/Dec of 2023 and Roger Bell is still with Hannam and Partners. So does that mean, “it becomes too difficult to predict the company’s future earnings” is the correct answer?
Also as of this writing, Faraday’s market cap is $83.58M (down almost 25% from the November number) and the stock has hit a new 52 week low of $0.475. It is down over 35% in 6 months and down almost 27% YTD.
Below is the collection of the “Corporate Overview” pages from Faraday’s presentations.
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