09 June 2011
Even if you aren't accustomed to reading the financial news, you've probably seen the name in the last few days, because short seller Muddy Waters put out a research report essentially accusing the bosses at Sino-Forest of running a ponzi scheme and dressing it up to look like a timber company.
I've used the matter as a pretext for making a general point in the Forbes blog about how ordinary investors, those who don't have the resources necessary to do "due diligence" on Canadian/Hong Kong companies themselves, should act. Don't be afraid to head for the exits. You aren't a court. You don't owe them due process!
Here, if you're curious is what I had to say
Here is another take on the controversy from Felix Salmon.
But you might want to see the MWR report yourself. Voila!
MWR isn't the only lion looking at this particular zebra.
On the other hand, Sino-Forest has its defenders.
And why would a short seller/negative research operation name itself after this guy?
The psychological appeal of China to the western world, the idea of China, is itself a dream marketers' hook. Since when? Since about THEN.
Knowledge is warranted belief -- it is the body of belief that we build up because, while living in this world, we've developed good reasons for believing it. What we know, then, is what works -- and it is, necessarily, what has worked for us, each of us individually, as a first approximation. For my other blog, on the struggles for control in the corporate suites, see www.proxypartisans.blogspot.com.