Posts tagged 'Muddy Waters'

It’s a tough short life

Masa joined the FT in 2009 and has worked on a number of desks across the paper, including Companies, Markets and Comment. She spent much of 2010 in New York covering the US equity markets. But earlier this year she finally saw the light and moved to Alphaville.

She started her career in the investment banking division at Lehman Brothers in the summer of 2007, timing it perfectly with the beginning of the credit crunch.

She studied philosophy, politics and economics at Oxford University.

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| Dec 06 2012 17:20 | Comment |

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. Read more

Not what the Singaporeans ordered…

Paul Murphy is the founding editor of FT Alphaville.

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| Dec 04 2012 10:46 | Comment |

Here’s embattled agriculture combine Olam on Tuesday morning:

 Read more

Olam’s capital raise U-turn – a block on Block?

Masa joined the FT in 2009 and has worked on a number of desks across the paper, including Companies, Markets and Comment. She spent much of 2010 in New York covering the US equity markets. But earlier this year she finally saw the light and moved to Alphaville.

She started her career in the investment banking division at Lehman Brothers in the summer of 2007, timing it perfectly with the beginning of the credit crunch.

She studied philosophy, politics and economics at Oxford University.

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| Dec 03 2012 14:50 | Comment |

“We are very comfortable with our balance sheet position, in terms of our equity position as well as our debt position,” Sunny Verghese told Reuters in an interview on Thursday… Asked when Olam was likely to tap the markets at the earliest, Verghese said: “Definitely not in the next five to six months.”

Since that interview we might assume Olam has become less comfortable with its balance sheet position because on Monday the company announced an intriguing $750m rights issue.
 Read more

Olam responds to Muddy Waters

Masa joined the FT in 2009 and has worked on a number of desks across the paper, including Companies, Markets and Comment. She spent much of 2010 in New York covering the US equity markets. But earlier this year she finally saw the light and moved to Alphaville.

She started her career in the investment banking division at Lehman Brothers in the summer of 2007, timing it perfectly with the beginning of the credit crunch.

She studied philosophy, politics and economics at Oxford University.

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| Nov 28 2012 16:35 | Comment |

Following Muddy Waters’ report on why it’s shorting Olam, released yesterday, the company has released a detailed defence. In fact, it’s 45 pages long… Read more

Muddy Waters (finally) publishes report on Olam

Masa joined the FT in 2009 and has worked on a number of desks across the paper, including Companies, Markets and Comment. She spent much of 2010 in New York covering the US equity markets. But earlier this year she finally saw the light and moved to Alphaville.

She started her career in the investment banking division at Lehman Brothers in the summer of 2007, timing it perfectly with the beginning of the credit crunch.

She studied philosophy, politics and economics at Oxford University.

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| Nov 27 2012 09:46 | Comment |

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. Read more

Sohn Conference cheat sheet

Masa joined the FT in 2009 and has worked on a number of desks across the paper, including Companies, Markets and Comment. She spent much of 2010 in New York covering the US equity markets. But earlier this year she finally saw the light and moved to Alphaville.

She started her career in the investment banking division at Lehman Brothers in the summer of 2007, timing it perfectly with the beginning of the credit crunch.

She studied philosophy, politics and economics at Oxford University.

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| Nov 22 2012 16:01 | Comment |

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. Read more

Muddy Waters vs Olam: from New Zealand, with fudge

| Nov 20 2012 14:32 | Comment |

Carson Block of Muddy Waters laid into Singapore-based commodities trading group Olam International at Monday’s Sohn conference in London. Such is the way of his shorting.

The thrust of his argument was that there are troubling irregularities in Olam’s accounts and that the company has taken on excessive leverage.

But Block also pointed to Olam’s acquisition of NZ Farming Systems Uruguay, noting that latter had recently published an annual report with the words “fudge this” next to one of the line items. The suggestion was that Olam has not been particularly wise or scrupulous in picking acquisition targets. Read more

Muddy Waters’ next target: Olam

Masa joined the FT in 2009 and has worked on a number of desks across the paper, including Companies, Markets and Comment. She spent much of 2010 in New York covering the US equity markets. But earlier this year she finally saw the light and moved to Alphaville.

She started her career in the investment banking division at Lehman Brothers in the summer of 2007, timing it perfectly with the beginning of the credit crunch.

She studied philosophy, politics and economics at Oxford University.

Learn more

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| Nov 19 2012 20:38 | Comment |

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”. Read more

It’s hard being a China short seller

Kate is FT AV’s Asia Correspondent. She joined FT Alphaville in mid-2011 after carrying out various roles in the FT’s London office since 2005: interactive editor, companies reporter, and founding editor of the FT’s Energy Source blog.

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| Aug 14 2012 11:50 | Comment |

It’s a big, big China leveraged buyout — the biggest ever, in fact. Advertising company Focus Media, which is listed in the US, said it has received a $3.5bn takeover offer from its chief executive who is backed by a number of private equity groups, including Carlyle.

It’s gained attention in part because the offer (in the form of a non-binding proposal letter) of $27 per share is higher than the level the shares closed on the last day before the short seller Muddy Waters published the first of several reports criticising the company. Read more

A Sino suit, and CDS

Joseph joined FT Alphaville way back in March 2010. He likes all the politically and legally fiddly bits of finance. He also likes credit, rates, global macro, tail risk, and all that stuff. (You should email him story ideas. He’ll take anything.)

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| Apr 02 2012 13:30 | Comment |

1) Sino-Forest gets a “bankruptcy credit event, yes or no” question asked about its CDS for the second time:

 Read more

For sale: one timber company, hardly used

| Dec 07 2011 18:09 | Comment |

It’s about time we heard again from Sino-Forest.

The timber flipper has been quiet since it published the interim report into allegations of fraud made in June by short seller Muddy Waters. Third quarter results aren’t out until December 15, but Bloomberg has spoken to Judson Martin, Sino-Forest CEO, and the company seems in pragmatic mood. Read more

Sino-Forest still has many questions to answer

| Nov 15 2011 19:17 | Comment |

And it can start by answering: what’s the deal with these alleged whistleblowers (see below)?

The interim report published by Sino-Forest claims to exonerate the company, but that’s going too far, too soon. Read more

OSC: erm, about that Sino-Forest thing…

| Aug 26 2011 19:40 | Comment |

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: Read more

Sino-Forest scorched by Canadian regulators

| Aug 26 2011 14:50 | Comment |

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. Read more

Sino-Forest’s confusing earnings report

| Aug 15 2011 17:42 | Comment |

Sino-Forest, how we’ve missed thee.

Everyone’s favourite Chinese-Canadian timber company released its Q2 2011 earnings on Monday morning. Its share price rose 8 per cent immediately after Canadian markets opened and was up nearly 4 per cent at pixel time. Read more

Sino-Forest shares rise on activist investor hopes

Kate is FT AV’s Asia Correspondent. She joined FT Alphaville in mid-2011 after carrying out various roles in the FT’s London office since 2005: interactive editor, companies reporter, and founding editor of the FT’s Energy Source blog.

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| Jul 27 2011 04:54 | Comment |

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. Read more

Sino-Forest holidays — cancelled

| Jul 06 2011 14:25 | Comment |

Here is what Sino-Forest said, in its first quarter 2011 earnings call, 14 June:

Operator: And your first question comes from the line of Richard Kelertas from Dundee Capital Markets. Your line is open. Read more

Spreadtrum investors brush off Muddy Waters short

Kate is FT AV’s Asia Correspondent. She joined FT Alphaville in mid-2011 after carrying out various roles in the FT’s London office since 2005: interactive editor, companies reporter, and founding editor of the FT’s Energy Source blog.

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| Jun 29 2011 05:34 | Comment |

News that Muddy Waters, the short-seller that sparked the crash in Sino-Forest shares, has shorted another Chinese company has failed to make a dent this time. Bloomberg reports that shares in Shanghai-based Spreadtrum Communications initially plunged by more than a third on the news, but recovered to close just 3.5 per cent lower at $8.59. One analyst said the concerns raised by Muddy Waters about Spreadtrum, a wireless chip designer, were not new. Meanwhile the WSJ relates that auditors of Chinese companies traded in the US are having to take extra measures to confirm cash balances with banks, with the issue being raised in SEC filings in about 10 companies. Read more

The Muddy Waters effect [updated]

| Jun 28 2011 16:56 | Comment |

The price action in Shanghai-based, Nasdaq-listed Spreadtrum Communications on Tuesday afternoon.

Via Google Finance: Read more

Sino-Forest as Russian love story

| Jun 27 2011 18:23 | Comment |

FT Alphaville caught up on its Sino-Forest reading over the weekend and enjoyed the latest post by John Hempton of Bronte Capital. It looks at Paulson & Co.’s loss from the perspective of a fellow portfolio manager, offering sympathy and rivalry in equal measure. Hempton recognises that small teams of investors will use “shortcuts” based on received wisdom such as timber being a safe asset.

However, that does not excuse Paulson & Co for not doing their research thoroughly, writes Hempton: Read more

Shedding some light on the Sino-Forest

| Jun 24 2011 20:40 | Comment |

We bet Paulson & CO. wishes it had this research before it bought shares in Sino-Forest.

On Wednesday, Tom Szabo and David Zurbuchen from Augment Partners, a research firm that normally focusses on metals and mining stocks, published the first part of a report on Sino-Forest Corporation (TRE). Read more

Dear Sino-Forest investors: Sorry. Love, John Paulson

| Jun 24 2011 19:52 | Comment |

Here are extensive extracts from the memorandum sent by John Paulson, Michael Waldorf, and James Wong of Paulson & Co. Inc. to investors on Thursday:

It begins: Read more

Paulson not alone in Sino Forest setback

| Jun 22 2011 04:29 | Comment |

John Paulson is not the only prominent fund manager hurt by the share plunge of Sino Forest, the Toronto-listed Chinese company, reports Bloomberg. Christopher Davis, a value investor who researches stocks and holds them for long periods, owned 13% of the Chinese tree-plantation owner as of April 29 through his Arizona- based firm Davis Selected Advisers. The value of that stake has since dropped 92% or more than $600m, after Muddy Waters, an investment firm run by Carson Block, said Sino-Forest overstated its timber holdings. Davis’s firm, with $71bn in assets, held 30.9m Sino-Forest shares as of April 29, making it the second-biggest owner before Paulson & Co. dumped its stake, according to Bloomberg. The FT earlier reported that Paulson & Co lost more than $500m after selling its entire holding in Sino Forest. Read more

Fact or fiction, Sino-Forest edition

| Jun 21 2011 16:51 | Comment |

Only one of these exhibits is real:

Exhibit A: Read more

In a dark, dark wood

Joseph joined FT Alphaville way back in March 2010. He likes all the politically and legally fiddly bits of finance. He also likes credit, rates, global macro, tail risk, and all that stuff. (You should email him story ideas. He’ll take anything.)

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| Jun 21 2011 11:20 | Comment |

The Globe and Mail on Sino-Forest, June 20:

Its corporate structure has opened Sino-Forest up to criticism that it is too opaque. The company has scores of subsidiaries in China and offshore locations such as the British Virgin Islands. It has refused to disclose the names or locations of the customers who buy its standing timber, saying it doesn’t want to reveal the identity of its customers for competitive reasons… Read more

Paulson loses $500m on Sino Forest

Kate is FT AV’s Asia Correspondent. She joined FT Alphaville in mid-2011 after carrying out various roles in the FT’s London office since 2005: interactive editor, companies reporter, and founding editor of the FT’s Energy Source blog.

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| Jun 21 2011 01:51 | Comment |

Paulson & Co has lost more than $500m after selling its entire holding in Sino Forest, then FT reports. The sale adds to the pressure on Sino Forest as it attempts to fight a series of accusations by short seller Carson Block, and represents a high-profile setback for John Paulson, Paulson & Co’s founder, as his hedge fund struggles with recent poor performance. Paulson & Co was the largest shareholder in Sino Forest when Muddy Waters, Mr Block’s research firm, published a report on June 2 accusing the group of overstating its ownership of forestry assets in China. The company has denied the allegations and appointed an independent committee to examine the report. Since the report was published, shares in Sino Forest have fallen by more than 80 per cent. Read more

Pile of crap: suspending coverage

| Jun 20 2011 15:52 | Comment |

Timeline courtesy of Sino-Forest’s erstwhile supporter, Dundee Securities:

June 1: Read more

Sino-Forest: more questions, fewer trees?

| Jun 20 2011 14:35 | Comment |

Now, about them trees.

Canada’s paper of record, the Globe and Mail, on Saturday published the results of a two-week investigation into Sino-Forest’s assets. Read more

Sino-Forest versus Muddy Waters and the maxed out shorts

| Jun 14 2011 20:41 | Comment |

As if Sino-Forest didn’t have enough problems, it seems like the Markets Live effect is alive and well.

 Read more

High-growth, high-stakes at Sino-Forest

Tracy Alloway used to be deputy editor of FT Alphaville. Here she learned the details of derivatives, the absurdities of accounting and the various structures of ... erm ... structured finance. She now covers big US banks for the FT paper, including Goldman Sachs and Morgan Stanley. She pops up on FT Alphaville every once in a while.

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| Jun 14 2011 11:54 | Comment |

It’s Tuesday — Sino-Forest results day.

The Chinese forestry firm already stands accused of being a “stratospheric” fraud by research and short-selling outfit Muddy Waters. Today Sino-Forest is set to offer a deeper look at its finances with Q1 results. Read more

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