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Monday, June 6, 2011

Muddy Waters vs. Paulson & Co - Rd 2

Carson Block of Muddy Waters recently came out with a scathing short report on Sino-Forest (OTC: SNOFF or TRE.TO). This is not your typicaly chinese blank check company as Sino-Forest's largest holder is none other than Paulson & Co. Since release the release of the report (posted for your viewing convenience below) the stock has cratered (down 70% since its release) and Paulson has lost over a half a billion in the trading since the release of the report. Carson Block went on Bloomberg TV today to discuss his short and the company's retort. He says he is still short and thinks its worth zero.

It is interesting to see how this story plays out as Paulson is no sucker and the stock has really tanked since the report came out (although it is up a bit today). Keep an eye on it as someone could make a lot of money either on the short or long end of this story.


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