Bloomberg – Muddy Waters Research, the firm founded by short seller Carson Block, “pre-marketed” its June 2 report on Sino-Forest Corp. (TRE) to hedge funds for the past five weeks, said an analyst at Dundee Securities Ltd.
Sino-Forest tumbled 34 percent in Canadian trading yesterday, taking its decline to 78 percent since June 1, the day before Muddy Waters publicly released the report that said Hong Kong- and Mississauga, Ontario-based Sino-Forest’s disclosures of land holdings don’t match Chinese city records and that its stated production figures may not be accurate. Block, who said June 6 he will keep betting against Sino-Forest until its shares reach “zero,” stands to make money from declines in its stock.
