Markets

Analyst Actions: BMO Cuts Down Sino-Forest, Says It Wouldn't Provide Proof of Ownership of Trees

Sino-Forest Corp. (TRE-TO) was asked just days ago to provide proof of ownership for its Chinese timberlands but declined, according to BMO Nesbitt Burns analyst Stephen Atkinson, the Globe and Mail reported

Atkinson cut his rating on Sino-Forest Friday morning to Market Perform (it didn't say from what) after the company was the subject of a report Thursday by another research firm that questioned whether Sino-Forest really owns the trees it says it does. Sino-Forest shares plunged in response.

According to the Globe and Mail, the BMO analyst didn't give a new target price "pending a better understanding of the company's timber holding" and said that "given the information vacuum regarding the issues raised and the halt in stock trading on the TSX, we have lowered our rating to Market Perform (Speculative)."

Trading in Sino-Forest stock was yesterday halted by market regulators, putting at least a temporary stop to the free-fall of the share price after an obscure independent equity researcher issued a Strong Sell recommendation that included damaging allegations, the Globe and Mail said.

It said the Investment Industry Regulatory Organization of Canada (IIROC) halted trading in Sino-Forest at 1:19 p.m. ET, and it remains halted, awaiting a public statement from the company. This came after Sino-Forest's stock had tumbled $3.75, or almost 21 per cent, to $14.46 on the Toronto Stock Exchange - adding to the more than 5% lost on Wednesday.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Commodities

Latest Markets Videos

    MTNewswires

    Founded in 1999, MT Newswires (formerly known as Midnight Trader) is a leading provider of original source, multi-asset class, real-time, global financial news and information to most of the largest banks, brokerage firms and professional market data, trading & research applications in North America.

    Learn More