Posted on 06/03/2011 10:11:38 AM PDT by TigerLikesRooster
John Paulson Just Had A Terrible Day As Sino Forest Falls 60%
By Scott Rubin
Benzinga Staff Writer
June 02, 2011 5:52 PM
ZeroHedge broke the news this afternoon that John Paulson's mammoth hedge fund Paulson & Co. is the largest shareholder in Sino Forest (TRE.TO), which lost more than 20% on Thursday after Muddy Waters Research released a report on the company accusing it of fraud. The stock was halted on the Toronto stock exchange down 20%, but Sino Forest equity that trades in the U.S. on the pink sheets closed more than 60% lower.
Muddy Waters has gained a massive following after uncovering fraud at numerous Chinese companies, including RINO International and China Media Express. The firm put a $1 price target on Sino Forest, which closed the trading session at $7.33 after opening the day at $18.65. As of April 29, Paulson & Co. owned 34.7 million shares of Sino Forest, and likely took an almighty beating today on that position. As of May 31, a around 33% of the company's outstanding shares had been borrowed by short sellers, up from 18% at the end of April.
(Excerpt) Read more at benzinga.com ...
P!
Why would anyone invest in Chinese companies? Why would anyone get in bed with the Chicoms?
After John McCain, I thought that everyone would be smart enough to avoid RINO's!!! :oP
I’ve read that spotting and shorting these Chinese frauds - and there are lots of them - is the soundest strategy on Wall Street today.
Believe me, there are truck loads of them.
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