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Friday, June 3, 2011

Sino Forest just got muddied

[caption id="attachment_209" align="aligncenter" width="640" caption="Sino Forest drops 60% after a Muddy Water report"][/caption]

Muddy Water has posted research on a Canadian listed Chinese company called Sino Forest. You can see it here.

Also some good videos of Carson Block, founder of Muddy Waters, on CNBC here.

It's been interesting seeing these frauds expand. Starting from newly uplisted Chinese RTO's with low level auditors, to Chinese RTO's with high level auditors, to Chinese IPO's with high level auditors, now to Canadian listed Chinese companies.

Bronte Capital, pointed out in this NYT article that the bank branch at Longtop played a part in scheming the auditor. Makes you wonder if you can trust any financial statement from a Chinese company.

 

 

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