Analysts have taken so much heat lately for cheerleading that it seems worth mentioning a rare “sell” recommendation issued today by Research Capital’s oil and gas analyst Peter Linder.

Linder has downgraded Promax Energy to “sell” and cut its target price to $1.35, down from $2. In a report he blasts the firm for not being open with its results.

“Without a press release (an industry norm), Promax released its 1Q01 financial and operating results last Thursday on SEDAR,” says Linder. “Based on these results and likely lower than previously expected production rates for the last three quarters of 2001 and for 2002, we have again reduced our projected average 2001 and 2002 production rates.”

“We remain concerned that our production estimates for 2001 and 2002 may still be too high and another downward revision will shortly be warranted. We have become increasingly concerned about the outlook for Promax in every respect and suggest investors avoid this stock. We expect Promax’s share price to remain under downward pressure,” concludes Linder.