The Sino Forest fraud debacle has claimed an unwitting victim: the Tanzanian Royalty Exploration company.
CNBC just pointed out that the company’s stock has seemingly been down recently for no reason at all.
It’s a gold miner, so there might be other reasons — but check out its ticker symbol, TRE, the same as Sino Forest (Sino Forest is listed on the Canadian stock exchange; Tanzian Royalty is on the US).
Sino Forest has gotten hammered in the news recently after an analyst accused it of fraud (and it cost billionaire hedge fund manager John Paulson around $300 million).
And sometimes a funny phenomenon happens where a stock with the same ticker or the same word as something that’s been in the news will get hit for no reason other than it sounds like the company in the news.
We noticed it happened last summer when Cedar Shopping centres got hit because a news article about a mass bank kick-back scheme printed their ticker symbol, CDR, the name of the fund involved in the kick-backs.
Could that be why TRE is down this week?
Maybe next time John Paulson should hedge his investment.
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