OK guys:- Wild speculation about a conspiracy of shorts is wrong...

OK guys:

- Wild speculation about a conspiracy of shorts is wrong more often than not. Asian ex-Jap investors who have been burnt in Chinese accounting scandals are terrified this might be another Chao Da or Sino Forest. They prefer to sell now and ask questions later.

- I agree with wsiu02's point that there would have to be a lot of people in on the act if this were a fraud.

- I think it's just a case of a naive management made up of clod-hopping petroleum engineers, inexperienced in dealing with stock markets that doesn't understand investors or how to do proper PR. The rather amateurish website with its vomit-inducing color scheme (which until recently displayed dreary pictures of rows of desks and pigpens in their HK offices), along with the cowboy email address, testifies to this. That this aspect can only improve is a source of future value that will be crystallized in the HK listing.

- Richard Chandler is no dupe; I should know because I have dealt closely with him in the past.

Re Sino Forest: I guess his efforts form part of a much larger crusade to reform Chinese corporate governance, thus, in his eyes, transforming the economy. In fact, corporate governance and management integrity are his pet subjects. Look at related documents on on his rather flashy website (http://www.richardchandler.com/corporate-governance-and-national-prosperity). He wrote an extraordinarily detailed thesis on NZ corporate governance for his MA that earned him a first. He has also fought battles to get management fired at Gazprom and other Russian companies, plus SK Corp in Korea.

So he knows what he's doing, and he will throw everything he can at Sino Forest to get a resolution. If he makes money along the way (which he will), so much the better, but it will not be his prime concern. Do not underestimate his stubbornness (bloody-mindedness?) in getting his way.

Re EWC: RC places great store in Anglo Saxon managements and is generally a good judge of character. The related party transactions with SE / Slipform etc are rather odd, but at least they're properly disclosed. If RC is mistaken and there are shenanigans, sure, the stock price will collapse, but anyone with a strong stomach and a long term view will make money, because RC will turn EWC round.

So, in conclusion, I think this is a buying opportunity. But management still needs to be bombarded with calm, polite, well thought-out emails for them to respond properly and to create a catalyst for a SP reversal. The emails should suggest that they appoint a proper Investor Relations officer, undertake road shows in Oz and elsewhere, display a professional investor presentation etc, etc, because they have a pretty good long term story to tell.

If you have the guts, fill your boots!