UPDATE: Silvercorp Metals Down 15%, Hits 15 Mo Low; Muddy Waters Reportedly Says It Is Shorting The Stock
Silvercorp Metals Inc. (SVM.TO), the Chinese silver miner accused of accounting fraud in an anonymous letter last month, fell the most in almost three years after Carson Block's Muddy Waters LLC said it's shorting the stock, Bloomberg reported.
It said Silvercorp fell $1.35, or 17%, to $6.43 at 1:13 p.m. on the Toronto Stock Exchange, the biggest decline since Nov. 19, 2008. It added the shares have dropped 22% since the British Columbia Securities Commission announced last week it's investigating allegations made against the company in the Aug. 29 letter.
Muddy Waters in June alleged overstated holdings by Sino-Forest Corp. (TRE.TO), another Chinese company traded in Canada. According to Bloomberg, the research firm said in a Twitter posting today that it's shorting Silvercorp, linking to a report by Alfredlittle.com, a website that posts research on companies doing business in China. Contributors to the Alfredlittle.com report are also shorting the stock, it said.
"We read the Alfred Little report upon its release, and it supports some concerns we developed when researching Silvercorp," Block reportedly said in an e-mail today. "I'm not able to comment further on Silvercorp at this point."
Lorne Waldman, a spokesman for Vancouver-based Silvercorp, didn't respond to e-mail and telephone requests for comment, Bloomberg said. An e-mailed request for comment to Alfredlittle.com brought no immediate response, it added.
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