Tuesday, July 5, 2011

Sino-Forest Shares Surge After Wellington Management Discloses 11.5% Stake

Those swell people at Bloomberg report that Sino-Forest Corp. (TRE), the Chinese tree- plantation company accused by a short seller of overstating timber holdings, rose for a second day after Wellington Management Co. said it owned an 11.5 percent stake.

Sino-Forest climbed 27 percent in Toronto trading today, adding to a 30 percent gain yesterday, after the Boston-based investment firm said in a regulatory filing it held 28.3 million shares as of June 30. The stake was valued at C$90.7 million ($94.2 million) on that date. Wellington, which manages $663 billion, held 79,700 Sino-Forest shares, or 0.03 percent, as of Dec. 31, according to data compiled by Bloomberg.

“Maybe they know something the bears don’t,” Arthur Salzer, Toronto-based chief executive officer of Northland Wealth Management, which oversees C$200 million, said yesterday in a telephone interview...

http://www.bloomberg.com/news/2011-07-04/wellington-controls-11-5-of-sino-forest-as-timber-producer-s-stock-drops.html

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