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Paulson Pulls Out Of Sino-Forest, Cites $750 Million Loss Jun. 21 2011 - 11:19 am | 4,094 views | 0 recommendations | 0 comments
 Confidence in Chinese stocks has been stirred and shaken this month as several, including Sino-Forest, have faced fraud allegations. Now one of the stock’s largest investors has pulled the plug.
Sino-Forest’s opaque accounting issues have caused more than a few investors to pull out and head for the Canadian border. The Chinese company had a sizable investment – about 14% of its security holdings– from Paulson & Co., one of the Street’s leaders in making judgment calls.
Now Paulson is out. In a letter filed last Friday, Paulson let go of every last share his fund held in Sino Forest, admitting a loss in security and bond holdings of over $750 million. Whether it was a momentary lapse of judgment on the usually sage advisor’s side (it would seem that way) is helping to sink the stock still lower Tuesday, opening 17% below its closing price Monday, at $2.02 on the Toronto exchange.
Analysts have been reacting. Dundee analyst Richard Kelertas suspended coverage on the stock yesterday, saying he is not in a position to value or review the business at Sino-Forest until certain “findings are made public.” A separate allegation made in a report in Canada’s Globe & Mail threw another chip into the already messy debate the company is having with short sellers who have claimed it is hiding parts of its business practice to defraud investors.
Earlier this month, the SEC released a note to investors cautioning them about basing investing decisions on dubious research they read on the Internet. This followed a series of reports by anonymous researchers on websites like MuddyWatersResearch.com., one of which makes several claims about Sino-Forest’s accounting and inventory practices. (See “SEC Advises Skepticism“)
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狗仔卡
发表于 2011-6-21 07:29 PM
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发表于 2011-6-21 07:55 PM
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