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| TRE.TO Weekly Chart (FreeStockCharts.com) |
Tuesday, June 21, 2011
Sino-Forest (TRE.TO) Exhales DEEPLY
Sometimes in the markets, things go wrong. Very wrong. There are many examples, and for a whole host of different reasons. In some cases, the market punishment is directly related to (alleged) fraud. The current statements from Sino-Forest are that they may have overstated inventories. Paulson has dumped his entire stake in Sino-Forest. At a loss of an estimated $700MM or more. Even in a fund as big as his, at some $37B, that's still a significant drawdown. Not a pretty picture at the moment - unless you have stainless titanium cajones and truly believe that the 'news' and 'market analysis' are all crap, and the 'value' is still there. This stock has gone from $28.85 in April, to a LOD today of $1.29 - a >95% decline (in perceived 'value'). For you, a great time to go long. Risk tolerance set to MAX.
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