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.

TRE.TO Weekly Chart (FreeStockCharts.com)

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