Dominion Lending Centres Clearlease Reports Moody’s puts Sino-Forest (TSX:TRE) ratings under review for possible downgrade
VANCOUVER, BC (June 7, 2011) Dominion Lending Centres Clearlease Reports Moody’s Investors Service put Sino-Forest Corp. (TSX:TRE) under review Tuesday June 7, 2011 for a possible downgrade as the TSX-traded Chinese timberland owner continued to fight allegations it exaggerated sales and assets.
Sino-Forest has refuted the allegations, but Moody’s raised concerns the company’s business may be affected even if the accusations are proven false.
“Moody’s notes that Sino-Forest has been growing aggressively, and needs ongoing access to the equity and debt markets to continue such growth,” the debt rating agency said in a statement.
“There is a risk that the current allegations will damage its ability to do so, or increase the cost of doing so.”
Moody’s, which currently had a rating of Ba2 on the company, said $1.9 billion in Sino-Forest debt is affected by the review.
The review came as Sino-Forest stepped up its fight against allegations by short-seller Muddy Waters Research, which placed an estimated value of less than $1 for each Sino-Forest share.
Sino-Forest released English translations Tuesday to sales agreements and other documents showing its ownership of timberlands in China.
The company has released the Chinese versions of the documents as well as bank statements for accounts in China and Hong Kong.
In a note to clients Tuesday, Scotia Capital analyst Benoit Laprade said the company has released specific purchase agreements covering 1,616 hectares of land out of the company’s total holdings of 788,700 hectares.
“(Sino-Forest) has started to provide evidence of timber ownership, but the process will take time,” wrote Laprade, who has placed his rating on the company under review.
Laprade noted that a Muddy Waters investor call raised more questions than it provided answers.
“Issues raised include TRE’s accounting (and controls), related-party transactions, business structures (Authorized Intermediaries), and replanting requirements,” the Scotia Capital analyst wrote.
The company said it would detail its sources and uses of cash when it releases its quarterly financial results June 14. Sino-Forest is also expected to take questions from financial analysts when it holds a conference call to discuss the results.
Moody’s noted a material increase in working capital at Sino-Forest during 2010 and said the earnings report “should provide insight into the progress of converting working capital to cash.”
The average analyst estimate is for Sino-Forest to report a profit of 22 cents per share on $386 million in revenue, according to Thomson Reuters.
In 2010, the company reported a profit of $395.4 million or $1.60 per diluted share on $1.92 billion in revenues. That compared with a profit of $286.4 million or $1.38 per diluted share on $1.24 billion in revenue in 2009.
Shares in Sino-Forest were down about 20 per cent or $1.22 in trading Tuesday at $4.88, its lowest point since July 2010.
The stock had traded for more than $18 before short-seller Muddy Waters Research published a scathing commentary on the company accusing it of fraud.
Dominion Lending Centres Clearlease Video Link: http://youtu.be/f_kk7WJa7Uk
For more information please visit us at: http://www.clearlease.com/Career-Opportunities.html
About Dominion Lending Centres Clearlease
Dominion Lending Centres Clearlease Commercial (DLC Clearlease/Clearlease.com) is a fully diversified Lease Finance Mortgage Banking Brokerage Company specializing in Equipment Leasing, Automobile Leasing, Residential, Commercial Lending/Mortgage Financing. DLC Clearlease possesses the capability to accommodate financing needs ranging from a small second Home Mortgage to a Multi-Million Dollar Commercial Projects. No mortgage is too small or too large for this integrated Company.
Equipment Lease Financing in Vancouver, Surrey, Delta, Richmond, Langley, New Westminster, North Vancouer, West Vancouver, B.C. Also offering Automobile Lease Financing and Mortgage information. Founded by the Pidgeon brothers.
You may have recently seen a Dominion Lending advertisement on such media outlets as: Global News, CTV News, CBC Television, Rogers Sportsnet or possibly heard the great Don Cherry, a Canadian Sports legend, discuss Dominion Lending Centres.
Contact DLC Clearlease.com:
Dominion Lending Centres Clearlease
HEAD OFFICE, Bentall Two, Suite 900, 555 Burrard Street, Vancouver, BC, V7X 1M8, CANADA.
Mr. Alexander Pidgeon, Editor in Chief
Tel: (604) 696-1221 ext. 199
eMail: [email protected]
Website: http://www.clearlease.com
News: http://clearlease.com/category/equipment-lease-blog/feed/rss
Twitter: @clearlease
###
Video Link: http://youtu.be/f_kk7WJa7Uk
VANCOUVER, BC (June 7, 2011) Dominion Lending Centres Clearlease Reports Moody’s Investors Service put Sino-Forest Corp. (TSX:TRE) under review Tuesday June 7, 2011 for a possible downgrade as the TSX-traded Chinese timberland owner continued to fight allegations it exaggerated sales and assets.
Sino-Forest has refuted the allegations, but Moody’s raised concerns the company’s business may be affected even if the accusations are proven false.
“Moody’s notes that Sino-Forest has been growing aggressively, and needs ongoing access to the equity and debt markets to continue such growth,” the debt rating agency said in a statement.
“There is a risk that the current allegations will damage its ability to do so, or increase the cost of doing so.”
Moody’s, which currently had a rating of Ba2 on the company, said $1.9 billion in Sino-Forest debt is affected by the review.
The review came as Sino-Forest stepped up its fight against allegations by short-seller Muddy Waters Research, which placed an estimated value of less than $1 for each Sino-Forest share.
Sino-Forest released English translations Tuesday to sales agreements and other documents showing its ownership of timberlands in China.
The company has released the Chinese versions of the documents as well as bank statements for accounts in China and Hong Kong.
In a note to clients Tuesday, Scotia Capital analyst Benoit Laprade said the company has released specific purchase agreements covering 1,616 hectares of land out of the company’s total holdings of 788,700 hectares.
“(Sino-Forest) has started to provide evidence of timber ownership, but the process will take time,” wrote Laprade, who has placed his rating on the company under review.
Laprade noted that a Muddy Waters investor call raised more questions than it provided answers.
“Issues raised include TRE’s accounting (and controls), related-party transactions, business structures (Authorized Intermediaries), and replanting requirements,” the Scotia Capital analyst wrote.
The company said it would detail its sources and uses of cash when it releases its quarterly financial results June 14. Sino-Forest is also expected to take questions from financial analysts when it holds a conference call to discuss the results.
Moody’s noted a material increase in working capital at Sino-Forest during 2010 and said the earnings report “should provide insight into the progress of converting working capital to cash.”
The average analyst estimate is for Sino-Forest to report a profit of 22 cents per share on $386 million in revenue, according to Thomson Reuters.
In 2010, the company reported a profit of $395.4 million or $1.60 per diluted share on $1.92 billion in revenues. That compared with a profit of $286.4 million or $1.38 per diluted share on $1.24 billion in revenue in 2009.
Shares in Sino-Forest were down about 20 per cent or $1.22 in trading Tuesday at $4.88, its lowest point since July 2010.
The stock had traded for more than $18 before short-seller Muddy Waters Research published a scathing commentary on the company accusing it of fraud.
Dominion Lending Centres Clearlease Video Link: http://youtu.be/f_kk7WJa7Uk
For more information please visit us at: http://www.clearlease.com/Career-Opportunities.html
About Dominion Lending Centres Clearlease
Dominion Lending Centres Clearlease Commercial (DLC Clearlease/Clearlease.com) is a fully diversified Lease Finance Mortgage Banking Brokerage Company specializing in Equipment Leasing, Automobile Leasing, Residential, Commercial Lending/Mortgage Financing. DLC Clearlease possesses the capability to accommodate financing needs ranging from a small second Home Mortgage to a Multi-Million Dollar Commercial Projects. No mortgage is too small or too large for this integrated Company.
Equipment Lease Financing in Vancouver, Surrey, Delta, Richmond, Langley, New Westminster, North Vancouer, West Vancouver, B.C. Also offering Automobile Lease Financing and Mortgage information. Founded by the Pidgeon brothers.
You may have recently seen a Dominion Lending advertisement on such media outlets as: Global News, CTV News, CBC Television, Rogers Sportsnet or possibly heard the great Don Cherry, a Canadian Sports legend, discuss Dominion Lending Centres.
Contact DLC Clearlease.com:
Dominion Lending Centres Clearlease
HEAD OFFICE, Bentall Two, Suite 900, 555 Burrard Street, Vancouver, BC, V7X 1M8, CANADA.
Mr. Alexander Pidgeon, Editor in Chief
Tel: (604) 696-1221 ext. 199
eMail: [email protected]
Website: http://www.clearlease.com
News: http://clearlease.com/category/equipment-lease-blog/feed/rss
Twitter: @clearlease
###
Video Link: http://youtu.be/f_kk7WJa7Uk
Dominion Lending Centres Clearlease Reports Moody’s puts Sino-Forest (TSX:TRE) ratings under review for possible downgrade
VANCOUVER, BC (June 7, 2011) Dominion Lending Centres Clearlease Reports Moody’s Investors Service put Sino-Forest Corp. (TSX:TRE) under review Tuesday June 7, 2011 for a possible downgrade as the TSX-traded Chinese timberland owner continued to fight allegations it exaggerated sales and assets.
Sino-Forest has refuted the allegations, but Moody’s raised concerns the company’s business may be affected even if the accusations are proven false.
“Moody’s notes that Sino-Forest has been growing aggressively, and needs ongoing access to the equity and debt markets to continue such growth,” the debt rating agency said in a statement.
“There is a risk that the current allegations will damage its ability to do so, or increase the cost of doing so.”
Moody’s, which currently had a rating of Ba2 on the company, said $1.9 billion in Sino-Forest debt is affected by the review.
The review came as Sino-Forest stepped up its fight against allegations by short-seller Muddy Waters Research, which placed an estimated value of less than $1 for each Sino-Forest share.
Sino-Forest released English translations Tuesday to sales agreements and other documents showing its ownership of timberlands in China.
The company has released the Chinese versions of the documents as well as bank statements for accounts in China and Hong Kong.
In a note to clients Tuesday, Scotia Capital analyst Benoit Laprade said the company has released specific purchase agreements covering 1,616 hectares of land out of the company’s total holdings of 788,700 hectares.
“(Sino-Forest) has started to provide evidence of timber ownership, but the process will take time,” wrote Laprade, who has placed his rating on the company under review.
Laprade noted that a Muddy Waters investor call raised more questions than it provided answers.
“Issues raised include TRE’s accounting (and controls), related-party transactions, business structures (Authorized Intermediaries), and replanting requirements,” the Scotia Capital analyst wrote.
The company said it would detail its sources and uses of cash when it releases its quarterly financial results June 14. Sino-Forest is also expected to take questions from financial analysts when it holds a conference call to discuss the results.
Moody’s noted a material increase in working capital at Sino-Forest during 2010 and said the earnings report “should provide insight into the progress of converting working capital to cash.”
The average analyst estimate is for Sino-Forest to report a profit of 22 cents per share on $386 million in revenue, according to Thomson Reuters.
In 2010, the company reported a profit of $395.4 million or $1.60 per diluted share on $1.92 billion in revenues. That compared with a profit of $286.4 million or $1.38 per diluted share on $1.24 billion in revenue in 2009.
Shares in Sino-Forest were down about 20 per cent or $1.22 in trading Tuesday at $4.88, its lowest point since July 2010.
The stock had traded for more than $18 before short-seller Muddy Waters Research published a scathing commentary on the company accusing it of fraud.
Dominion Lending Centres Clearlease Video Link: http://youtu.be/f_kk7WJa7Uk
For more information please visit us at: http://www.clearlease.com/Career-Opportunities.html
About Dominion Lending Centres Clearlease
Dominion Lending Centres Clearlease Commercial (DLC Clearlease/Clearlease.com) is a fully diversified Lease Finance Mortgage Banking Brokerage Company specializing in Equipment Leasing, Automobile Leasing, Residential, Commercial Lending/Mortgage Financing. DLC Clearlease possesses the capability to accommodate financing needs ranging from a small second Home Mortgage to a Multi-Million Dollar Commercial Projects. No mortgage is too small or too large for this integrated Company.
Equipment Lease Financing in Vancouver, Surrey, Delta, Richmond, Langley, New Westminster, North Vancouer, West Vancouver, B.C. Also offering Automobile Lease Financing and Mortgage information. Founded by the Pidgeon brothers.
You may have recently seen a Dominion Lending advertisement on such media outlets as: Global News, CTV News, CBC Television, Rogers Sportsnet or possibly heard the great Don Cherry, a Canadian Sports legend, discuss Dominion Lending Centres.
Contact DLC Clearlease.com:
Dominion Lending Centres Clearlease
HEAD OFFICE, Bentall Two, Suite 900, 555 Burrard Street, Vancouver, BC, V7X 1M8, CANADA.
Mr. Alexander Pidgeon, Editor in Chief
Tel: (604) 696-1221 ext. 199
eMail: [email protected]
Website: http://www.clearlease.com
News: http://clearlease.com/category/equipment-lease-blog/feed/rss
Twitter: @clearlease
###
Video Link: http://youtu.be/f_kk7WJa7Uk