Photo: Kent Law
Carson Block‘s research report on Sino-Forest, which compared the Chinese plantation operator to the Madoff Ponzi scheme, has demolished the stock since May.Block has not been immune to criticism himself.
Sino-Forest, analysts that cover the company, and the forestry industry, have said he is the fraud, because he knows knows nothing about forestry.
He explained why to the Globe and Mail, over lunch:
Over the course of a three-hour interview at a busy chain restaurant in Marina del Rey, Mr. Block becomes increasingly pointed as he responds to the claims of his adversaries, finally adopting a whiny, sniveling tone to mimic his critics’ condemnations.
“The company is saying ‘you don’t understand the tree business.’ The analysts say ‘oh, he doesn’t understand our industry,'” he says.
“You know what industry I do understand pretty well, it turns out? The fraud industry. So I don’t need to know trees to know fraud,” he says.