Sino-Forest Corp (TRE.TO) Buy, Sell or Hold

Sino-Forest Corp (TRE.TO)

0.00

-0.00 (0.00%)

11 watching

DON'T BUY

Straddle? Oct 3 Calls last traded at $1.20 and the Puts traded at $1.35. The options on the stock tend to have very wide Bid/Ask spreads. Doesn't know if you would be able to get it on at a reasonable price. He would have reservations about doing this.

Wealthica Track your Stocks in your Watch List

DON'T BUY

Allegations by Muddy Waters have devastated the stock. Company has not been vigorous in its defense. Wouldn’t touch this stock.

HOLD

A tough call for anybody at this point as nothing has been cleared. Doesn’t expect it’s complete fraud. Doesn’t think it is like a Ponzi scheme. Would continue to hold and wait for more data to come out.

DON'T BUY

Could not get comfortable with this one because of the uncertainty of contract rights.

DON'T BUY

Would not touch it with a 10-foot pole. Who knows where it is going. If you have it and got it at $20 and now it is at $4 perhaps you wait it out and/or sell out on a strong day.

COMMENT

Forestry just ended its period of seasonal strength. Chart shows that it held at about the $15.50 level but broke down through minorly. A light penetration is OK. If we don’t get a bounce off the $15-$15.25 level quickly, we’ll probably see it at the $10 level.

SELL

Fraud charges laid and trading has been suspended. 3rd unbiased parties are going to have to go over to China to make sure the company is for real. Until that happens, you are probably better off out of it.

COMMENT

Peers in this sector got hit hard. Ran up to the 50 day, down to the 200 and crashed through the 200, almost equal distance from the peak of the 200 to the low of the 200. This was a sector correction, not a specific stock correction. Long term trend is still intact. Thinks you should be OK with this.

Wealthica Track your Stocks in your Watch List

TOP PICK

Forestry plantations in China. There is a secular shift taking place in China from concrete structures to timber structures, partly because of costs. Chinese government is trying to reduce housing costs for low-income folks. Tremendous amount of damage to concrete structures after the last earthquake.

BUY

Big supplier of wood. Tremendous plantations of eucalyptus in China. Standing timber is one of the great inflation hedges.

COMMENT

Chart shows upward channel with upper resistance-lower support. If it stays within those lines you will do well. However steepness of the rally is starting to decline and expects it will consolidate around $20, which suggests some trading activity between $18.50 and $21.50 and could go on for maybe 3 or 4 months before a breakout.

DON'T BUY

Produces lumber for the Chinese market, which makes the stock's valuation dependent on what the world believes about China's growth. Valuation is reasonable if China continues to grow. He would prefer a more diversified way by looking at a materials-sector investment.

DON'T BUY

It’s a long story. Enormous plantations of eucalyptus in China. You are buying cash flow and the growing wood. Better managed than people feared a few years ago.

TRADE

Brilliantly run company. Intelligent in this business. Feeding its product into a Chinese environment.

COMMENT

Great looking chart and reaching new highs. Use a finance site (Stockchart.com or Globeinvestor) and draw a 100 and 200 day moving average, which gives you a trailing stop loss. Get out a half position if it drops below the 100-day and out of the full position if it drops below the 200-day. Could see this going to $25.

Showing 16 to 30 of 74 entries

Most Recent Experts

Chris Blumas

at Raymond James Investment Counsel Ltd.

The Panic-Proof Portfolio (Stockchase Research)

Stockchase Premium

The Weekly Buzzing Stocks by Billy Kawasaki

Stockchase

Jim Cramer - Mad Money

CNBC

John Zechner

J. Zechner & Assoc

Stockchase, in its reporting on what has been discussed by individuals on business television programs (in particular Business News Network), neither recommends nor promotes any investment strategies.

We paraphrase the experts by hand, we watch the shows and write down what we understood from the experts’ comments. We are human and can make mistakes, help us fix any errors. If you see something that you know is not right or if there is a problem with the site, feel free to email us at : [email protected].

Summer Sale

Sino-Forest Corp (TRE.TO)