I spoke today with a friend who is CIO for one of Canada's top pension funds. He said all I needed to hear, that his team knew of ARC but did not highly value the quality of their research and, therefore, did not use it. What these two brothers did was likely one of the most irresponsible pieces of research ever. We all know examples of Rogue Traders in recent years and I would categorize this as a classic example of Rogue Research. I can just see these two neanderthals sitting in their office finallizing their report and Mark turns to Al and says, "Hey Al, before we publish this, do you think we should contact the company to verify the core details and conclusions of the report?". To which Al likely said, "Na Mark, too much work besides, I want to get away early today to beat the traffic up to the cottage!"
I was trying to think of a comparison to relate to just how shoddy this type of work is and here's what I came up with; it's like hiring a key employee after reading his/her resume but not bothering to interview them; it's like doing a review of a play at Mirvish Theatre by reading the script but not bothering to actually take in the production; it's like purchasing a house after reading the MLS listing but not bothering to view the house.
None of these things any of us would do, unless we were totally incompetent. Oh, and here's another thing. Apparently the Brothers Rosenthal feel that Just Energy was not adhering to proper accounting methods. Well guess what, Ernst & Young apparently thing otherwise, in case anyone would like to read page 60 of the most recent annual report.