GREY:MIGGF - Post by User
Post by
hatorihanzoeon Apr 01, 2012 11:56am
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Post# 19744837
Chinese company fraud, Sino bankruptcy
Chinese company fraud, Sino bankruptcyhttps://www.winnipegfreepress.com/business/sino-forest-corp-for-sale-as-it-seeks-bankruptcy-protection-145318555.html
Sino-Forest has filed for bankruptcy and delisting on the TSX. Now with MGO prices so low with other Chinese companies, I don't believe the prices will stop degrading from on here. As of March 2 according to the article, with cash consolidated at $577.4 million and 246.1 million shares, it is about $2.35 per share, I highly doubt shareholders will get this and how long it will take for this to happen if they do get the money on TRE.TO shares.
The insider would have already sold and the share price of MGO was to $3.03 fearing this news to hit on Monday. Most of the selling was from institutions because of the market selling off on the TSX so the stigma of Chinese fraud companies hasn't been fully priced in despite the week's sell off.
The unknowledgeble of the public gave MGO an uptick for the speculative buys who didn't have the insider info on Sino-Forest bankruptcy. I wonder how Monday will look with this new news?