TRE - Sino Forest (TSX) - Page 12

Been trading this thing all day, nice roller coaster going on this thing.

Aug 15 (Reuters) - Embattled Chinese forestry company Sino-Forest (TRE.TO) said on Monday its second-quarter profit more than doubled on a one-time gain and its shares rose 7.8 percent in early trading.

Net income in the period ended June 30 rose to $447.1 million, or $1.64 a share, up from a year-ago profit of $199 million, or $199 million, or 77 cents a share. But excluding a non-cash gain of $469.5 million, the company reported a loss of $9.8 million

The company, which has seen its market value tumble after it was accused of fraud by short-seller Carson Block, said an internal review of the allegations will now only be completed by the end of this year.

i heard they delayed some financial statments??

any news on the investor tour??

--these delays dont add up...i still say its a scam...

they are delaying the tour to september...they are being compliant with all of the investigation which is always a good sign

no specified reason why they are delaying it...it is the second delay though

made a nice run into the close..

although anyone who has been following this stock could have seen this coming.  This same thing happened 3 times now...this is the third time they've delayed the search...and EVERY TIME the stock has fell to $4-5 levels as new investors get afraid to jump in.  2-3 weeks later, investors forget about and start buying again...therefore, in a way i was happy their was a delay because i knew this would be the case.  i predict a run to 7 within 1-2 months (maybe sooner depending on how the market goes).  buyer confidence will come back just as it has the last two times...in my opinion anyways

Ouch, Tre-Sino halted today for fraudulent activity...hopefully nobody is in too deep with this one.

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Well there you have it ladies and gentlemen.

There has been a lot of back and forth debate between members here, but at the end the truth always comes out.

never seen something like this happen...

what do you think this means for the company and even the shareholders? does it get delisted? or just drop to a redic. low?

It will eventually re-open at a few cents so shorts can cover and eventually delist completely.

I hope none of you got hit too badly on this, it was a tricky one.

TORONTO - The Ontario securities regulator has ordered senior executives at Sino-Forest Corp. including chairman and chief executive Allan Chan to resign and ceased trading of the company's shares.

The order comes after a short-seller made allegations earlier this summer that Sino-Forest (TSX:TRE) exaggerated its revenue and timber holdings.

In addition to Chan, four other executives were ordered to resign.

And for a good laugh, this highlights "how out to lunch some financial analysts" are.

Warren Buffet wouldnt touch TRE with a ten foot pole, and even then would be just poking to make sure its dead.

Globe says Saputo, others look good for the longer term

2011-08-26 03:50 PT - In the News

See In the News (C-SAP) Saputo Inc

The Globe and Mail attempts to identify Canadian stocks billionaire investor Warren Buffett might buy in its Friday, Aug. 26, edition. The Globe's John Heinzl writes in the Number Cruncher column that Mr. Buffett aims to buy solid businesses at "fair" prices and often holds stocks for decades, Coca-Cola and American Express being two examples. He summed up his investing philosophy in his 1996 letter to Berkshire Hathaway shareholders: "Your goal as an investor should simply be to purchase, at a rational price, a part interest in an easily understandable business whose earnings are virtually certain to be materially higher five, 10 and 20 years from now. Over time, you will find only a few companies that meet these standards -- so when you see one that qualifies, you should buy a meaningful amount of stock. You must also resist the temptation to stray from your guidelines. If you aren't willing to own a stock for 10 years, don't even think about owning it for 10 minutes." Stocks The Globe believes fit Mr. Buffett's investing criteria are Bird Construction ($10.55), Home Capital Group ($47.19), Sino-Forest ($4.81), Alimentation Couche-Tard ($28.60) and Saputo ($38.48).

How did all these billionaires get sucked into this blackhole?

Was Muddy Waters the only one that really did their research?

i was reading somewhere that their were really only 2 red flags that kept investors away.  THink about it.  The allegations were made by Carson Block who i believe has admitted that he has his own personal money short on the stock.  Therefore, when analysts disagreed with him, it made sense because he would obviously stand behind his claims.  The other was Paulson dropping his stake.  This was purely a strategic play as even if the company proved itself 100%, he probably would never see his 17-25 positions ever.  Therefore, it would be useless for him to carry such a large losing position to the next quarter...especially when he was already holding BAC as well.  This would have been the obvious one to let go.

When you think about that...for investors, it isnt really a red flag as much as it was purely allegations made by one person.  Turns out he was dead on.  The company complied with the investigation and provided an interview that said they could support their claims.  Just how i see it...was a very cloudy situation.

when sino forest crashed and management opted not to do a course issuer bid the alarm should have went off. They had the cash(supposedly) but wouldn't buy back shares when the market is giving them a 90% discount, sound the horns

Quote:

Originally Posted by davidstlukas 

 Just how i see it...was a very cloudy situation.

Granted it was not crystal clear, but when guys like Paulson decide they can not save their position, its a pretty good indicator.

Im not sure who that other billionaire was who took a position, that really made things more interesting. Its probably because TRE had some serious connections that made them look very legit.

Who knows what the real truth is, but it seems at the end of the day the Muddy Waters report was the right one.

Now Muddy Waters may have been right, but there is still the very large question on how right. I mean, clearly the company hasn't overstated EVERYTHING right? It has to worth something given the amount of cash that they have. Maybe not the $20 that they were initially trading at but something closer to $2-4? That is the one thing that bugs me. All these reports saying that there is fraud but no actual numbers. Anyone have any thoughts on this?

ya thats the whole thing i was getting at.  it seems a little extreme to me.  (i dont hold a position so i dont know why i even care lol) but it just doesnt make sense to me.  i mean...i definitely think they should be accountable to frad however, getting down to below 1 seems a bit crazy to me (given the capital they still have). I am kinda puzzled on this one as well.  Like right now its suspended? When will it be brought back to market?
 

Quote:

Originally Posted by Justo 

Now Muddy Waters may have been right, but there is still the very large question on how right. I mean, clearly the company hasn't overstated EVERYTHING right? It has to worth something given the amount of cash that they have. Maybe not the $20 that they were initially trading at but something closer to $2-4? That is the one thing that bugs me. All these reports saying that there is fraud but no actual numbers. Anyone have any thoughts on this?

It may be worth "something", but the fact is they lied, once you have your company officially branded as a scam, no real investor will bother touching it.

You may get plenty of small time speculators and arbitrage traders getting in with hopes of the pieces being worth something, but the big fish will never touch this again.

oh i understand that.  Granted, I dont think many new big investors would have touched it anyways.  To be honest though, its a bitter/sweet situation.  For the company, the next 5 years will suck having to rebuild and regain trust.  With new management, restructuring, and oversight, i think in 10-15 years, a small investment in this company can return 10 fold.  I would be interested in a really small position as a speculative play for that reason.  I would like to see exact numbers and figures first, however.
 

Quote:

Originally Posted by StockJock-e 

It may be worth "something", but the fact is they lied, once you have your company officially branded as a scam, no real investor will bother touching it.

 

You may get plenty of small time speculators and arbitrage traders getting in with hopes of the pieces being worth something, but the big fish will never touch this again.