FT Alphaville » Carson Block

It’s a tough short life

Masa Serdarevic — Thu, 06 Dec 2012 17:20:03 +0000

Muddy Waters’ Carson Block has made some big claims about the companies he and his colleagues have targeted and shorted, the latest of which is Olam. But the extent to which the market has been willing to follow his trades has been falling. More importantly, the willingness of sovereigns to support their listed companies has been rising. The combination of the two suggests shorting Block-style is getting less profitable.

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Not what the Singaporeans ordered…

Paul Murphy — Tue, 04 Dec 2012 10:46:52 +0000

Here’s embattled agriculture combine Olam on Tuesday morning:

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Muddy Waters (finally) publishes report on Olam

Masa Serdarevic — Tue, 27 Nov 2012 09:46:46 +0000

Carson Block has faced some criticism in the past couple of days (such as from the FT’s Lex) for the week-long delay in releasing the promised Muddy Waters’ report on Singapore-based Olam International.

But the wait is over. The report was published on Monday night. Block has not skimped on his allegations, so have a new ink cartridge ready if you’re planning on printing out all 133 pages.

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Sohn Conference cheat sheet

Masa Serdarevic — Thu, 22 Nov 2012 16:01:08 +0000

Hedge fund managers piled into the Marriott on Grosvenor Square earlier this week for London’s first Sohn conference. The headlines were dominated by Carson Block’s announcement that his next target was Olam International, but we wanted to give you a quick run through what the others had to say.

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Muddy Waters’ next target: Olam

Masa Serdarevic — Mon, 19 Nov 2012 20:38:09 +0000

With his reputation suitably inflated from his Sino-Forest adventures, Carson Block’s next target is Olam International, the Singapore-based commodities trading group. As usual with the companies Block focuses on, it should be assumed that that his firm, Muddy Waters, is shorting the name.

Speaking at the Sohn London Investment Conference on Monday, Block questioned Olam’s accounting practices, declaring that the company was engaged in “constant ‘reclassification’” of certain parts of its balance sheet. He alleged there was a case where “office supplies became biological assets”.

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OSC: erm, about that Sino-Forest thing…

John McDermott — Fri, 26 Aug 2011 18:40:56 +0000

We take it back, perhaps the Canadian regulators have absolutely nothing to teach their US counterparts.

A few hours after suspending trading in Sino-Forest shares and ordering the executive team to resign, the Ontario Securities Commission issued the following statement:

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Sino-Forest scorched by Canadian regulators

John McDermott — Fri, 26 Aug 2011 13:50:03 +0000

This really wasn’t what Sino-Forest hoped for when it welcomed the Ontario Securities Commission investigation following the release of Muddy Waters’ now infamous report into the firm.

The OSC has decided to not wait around for Sino-Forest’s independent investigation.

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Sino-Forest shares rise on activist investor hopes

Kate Mackenzie — Wed, 27 Jul 2011 03:54:21 +0000

Sino-Forest shares have climbed since billionaire investor Richard Chandler disclosed his stake in the company, Bloomberg reports. The Chinese tree farming company’s shares rose to their highest level since Carson Block’s firm, Muddy Waters, published a report claiming it had overstated its timber holdings. The shares rose as much as 12 per cent in Toronto on Tuesday. Mr Chandler’s Mandolin Fund disclosed on July 20 it had built up 26.7m shares in Sino-Forest, or an 11 per cent stake, making it the company’s third-largest investor. Chandler became one of New Zealand’s richest men partly by pushing for reforms at South Korea’s SK Group, the news agency says.

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LA researcher is scourge of Chinese companies

John McDermott — Mon, 25 Jul 2011 21:27:51 +0000

Without ever leaving the comfort of his Beverly Hills home in Los Angeles, Andrew Left has become the scourge of companies based halfway around the world in China. Mr Left, 40, does not understand Chinese and has not been in China for more than a decade. Over the past five years, however, he has prepared research reports on at least 18 Chinese companies that trade publicly in the US, alleging fraud, accounting irregularities and disclosure violations. Since each report was posted, the stock prices of 14 of those 18 companies have fallen 50 to 100 per cent, says the FT. Mr Left’s strategy is similar to that of Carson Block, the short seller who devastated Sino-Forest’s value with a damning report extensively covered by FT Alphaville.

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Carson Block drinks beer, leaves questions

John McDermott — Mon, 18 Jul 2011 14:09:00 +0000

The Globe & Mail continued its coverage of the Sino-Forest story by sharing a few beers and a Cobb salad with Carson Block.

In a “dude”-laced interview with Andy Hoffman published Saturday, Block reiterates his belief that Sino-Forest is a “fraud”.

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