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CEO Allen Chan tells The Globe he’s “angry, stunned and frustrated,” which is the least he could say given that his investors have just lost a couple of billion. Still, the company hasn’t sued Muddy Waters. Still, insiders aren’t buying, or don’t appear to be. And still, it refuses to name its customers – the ones who buy the forests Sino sits on for two or three years before unloading them for huge profits.
Revealing customers, the CFO says, is “like putting up a little flag and saying ‘everybody come here.’ If we disclose our customers we are saying ‘everybody come here and sell to our customers.’ That is important information for someone to replicate what we are doing.”
Sino must have the dumbest customers in the world if they haven’t figured out that they should shop around.
I presume that’s why the company is reluctant to sue a little research firm that can’t even get its facts straight. Doing so would mean Sino would have to answer all these questions, and that just wouldn’t be good for business, one way or another.