What makes a stock fall 20% in a day resulting in halted trading? --> This report by Muddy Waters Research
Looking at the front page of the Muddy Waters Research a proverb is quoted: "Muddy waters make it easy to catch fish". The intro goes on to explain the mandate of the the company: Expose "sub-par" companies and illuminate "well-run and well-positioned" companies. It appears there is a focus on Chinese companies.
The Muddy Waters report makes very strong allegations. The first bullet point on the report says it all:
"Like Madoff, TRE is one of the rare frauds that is committed by an established institution."
The stock which traded north of $25 on March 31st 2011, has now come down to below $15. Muddy Waters has a valuation of sub $1 on this stock.
Muddy Waters has also just release a 34.1MB zip file with data to back up there claim. This can be download from their link: here
News links below:
Sino-Forest shares plunge halt trading - BNN
Sino Forest plunges as short seller targets stock - Bloomberg
Sino Forest Shares Plunge 21%
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