"We risk becoming the best informed society that has ever died of ignorance"
- Rubén Blades

"You can't make up anything anymore. The world itself is a satire. All you're doing is recording it"
- Art Buchwald

"It's getting exciting now, two and one-half. Think of everything we've accomplished, man. Out these windows, we will view the collapse of financial history. One step closer to economic equilibrium"
- Tyler Durden

"It is your corrupt we claim. It is your evil that will be sought by us. With every breath, we shall hunt them down."
- Boondock Saints

Tuesday, July 26, 2011

TRE: Sino Forest

Two words: Sino Forest.  Many of you ought to know this firm name by now.  They stock jumped nearly 24% today on a varied news flow that started on Friday.  Slowly over the past few weeks Sino-Forest has regained some favor among speculators.

A.  Muddy Waters filed a law suit (REUTERS)
B.  Paulson Hires a New Specialist After Being Fooled (SFGate)
C.  Increased Asian Wood Demand - (TDAmeritrade)

Recently, Richard Chandler disclosed his investment in Sino-Forest as did Wellington Management Co. LLP
Sino Forest 1 Minute Chart
The correlation historically for the US pink sheets version has been about 0.40.  Given the way markets are expected to go, I still stand with this firm and refer to this post.