TORONTO, Aug. 28, 2011 /CNW/ - Sino-Forest Corporation ("Sino-Forest" or the "Company") (Toronto:TRE.TO) announced that Allen Chan has voluntarily resigned as Chairman, Chief Executive Officer and Director, pending completion of the review by the Independent Committee of the allegations made by Muddy Waters. The Board has appointed William Ardell, Lead Director and Chairman of the Independent Committee, to the role of Chairman and Judson Martin, Executive Director and Vice-Chairman of the Company, to the role of CEO. Mr. Martin will continue as CEO of Greenheart Group Limited, the Company's controlled subsidiary listed on the Hong Kong Stock Exchange. Mr. Chan will become Founding Chairman Emeritus of the Company and will be fully available to assist Mr. Martin with operational matters and with the Independent Committee review as requested. Mr. Chan had expressed his willingness to step aside prior to the issuance on the morning of August 26, 2011, of a cease trade order by the Ontario Securities Commission (the "OSC"). David Horsley and Tom Maradin are continuing in their current roles as Chief Financial Officer and Vice President Corporate Finance respectively. The three overriding priorities of the Company are to complete the work of the Independent Committee, to cooperate with the OSC and to preserve shareholder value.
If you read his background in the news today, he is extremely knowledgable in several fields (including martial arts) and has served in many capacities as editor, author, and in govt affairs and was well respected by peers. I can see really smart people using their skills to game the system (which ultimately leads to their demise) and it is sad that this seems to be another example.
I am tempted to do a trade under a buck. This is a classic case of a falling knife and the bottom can easily be $0, but there is bound to be some volatility where you can scalp 20-30%. There were 3 opportunities last Fri. But I am not sure where to take a small gamble, and to be sure, it is just that. Any ideas?