Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Report on Business

Streetwise

News and analysis on Bay Street and the world of finance
available exclusively to subscribers of Globe Unlimited

Entry archive:

Plantation operation in China, in photo supplied by Sino-Forest Corp.
Plantation operation in China, in photo supplied by Sino-Forest Corp.

BMO says Sino-Forest wouldn't provide proof of ownership of trees Add to ...

Sino-Forest Corp. was asked just days ago to provide proof of ownership for its Chinese timberlands but declined, according to BMO Nesbitt Burns analyst Stephen Atkinson.

Mr. Atkinson cut his rating on Sino-Forest Friday morning to "market perform" after the company was the subject of a report Thursday by another research firm that questioned whether Sino-Forest really owns the trees it says it does. Sino-Forest shares plunged in response.

More related to this story

Mr. Atkinson said that analysts have asked Sino-Forest to prove it has the forests, but were rebuffed.

"At the analysts' presentation after the annual general meeting on May 31, 2011, proof of ownership (Forest Certificates) was requested but the Chairman and CEO, Allan Chan, did not want to release this information for competitive reasons," Mr. Atkinson said in his note.

The BMO analyst didn't give a new target price "pending a better understanding of the company's timber holding" and said that "given the information vacuum regarding the issues raised and the halt in stock trading on the TSX, we have lowered our rating to Market Perform (Speculative)."

Follow on Twitter: @boyderman

 
Live Discussion of TRE on StockTwits
More Discussion on TRE-T

More related to this story

Topics:

In the know

Most popular video »

Highlights

More from The Globe and Mail

Most Popular Stories