Sino Forest Corporation took a massive hit ever since Muddy Waters issued a sell rating on the stock. But is the stock now a buy, as Muddy Waters was allegedly hit with SEC stock manipulation charges?
Possibly… down the road. But not just yet.
Turns out the SEC charges story was a hoax…
News that “the Securities and Exchange Commission has charged Carson Block and Muddy Waters LLC in a stock manipulation ring that allegedly published false information, causing a drop in the market prices of at least three stocks and generated more than $240.2 million in illicit profits when they sold shares short then repurchased the shares after a significant decline on the market” is more fiction that fact.
According to the latest news, “A spokeswoman for the SEC said the release was a fake, but would not comment on whether the agency is investigating further or has informed other authorities.”
Some one’s not too happy with Muddy Waters… and may have just a bit too much time of their hands.
Ignore the charges.