The Globe and Mail reports in its Saturday edition that Veritas Investment forensic accountant
Anthony Scilipoti is known on Bay Street as a man
making bold, contrarian calls
against Canadian darling stocks. The Globe's Tim Shufelt writes that
Mr. Scilipoti co-founded Veritas
in 2000. The
firm is often the sole outlier in a
chorus of analyst support, as is
the case with AutoCanada, Fortis,
Enbridge, Exchange Income
and CAE.
Management can react strongly
to finding itself the target of a Veritas
offensive. They make angry
phone calls, issue legal letters.
They can blacklist Veritas
analysts from participating in
conference calls to discuss earnings.
Such is the lonely path of a contrarian.
Veritas, however, remains
one of the few sources of independent
research in Canada and
adding another bullish voice to
the consensus would be of limited
value.
A little more than half of Veritas's ratings qualify as
"sells." The broader Canadian analyst
community, meanwhile, has
1,845 "buys" compared with just
301 "sells" on the stocks included
in the S&P/TSX composite index.
Mr.
Scilipoti says: "You end up being known for
making these very noisy calls.
That gets people's attention."
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