Evergreen Energy Corp.’s (AMEX: KFX, $10.06; NYSE Arca: EEE) stock dropped 47.6% since its end-August close of $16.02 on revelation of its First Energy Corp. (NYSE: FE, $55.87) dust emergency. It is normal to see a public company advised by a leading Washington, D.C.-based publicist to issue ten press releases to defend its stock’s worth. What could be more of interest to you is the behavior of Wall Street analysts in Evergreen’s schemes.
Despite the poor treatment that Wall Street analysts have received from Evergreen (click here to see KFx Dusts Its Analysts, Again.), many of them continue to promote Evergreen’s certain false positive information and omit material negative facts concerning the company.
Sure it is neat to watch a short seller’s investigation of Evergreen and what appears to be Evergreen’s finagling, but the really neat thing is the public policy issues involved in analyst behavior.