Hi all,

Here is a snippet fron Casey Research on the matter:

"We have no reason to suspect Silvercorp has done anything wrong. It appears this is a deliberate attack on the company to profit on existing short positions. Keep in mind that this is not the first time a company operating in China has been targeted by similar tactics; a number of companies have been hit with similar allegations, the most prominent of which was Sino Forest by short seller Muddy Waters last June. These people have clear reasons for circulating false rumors.

What to do? First, do not panic, and do not sell your shares. Given what we know at this point in time, we have no reason to change our opinion of the company. Keep in mind that CEO and Explorers’ League honoree Rui Feng has an incredible track record. Would we buy here? Perhaps, with the caveat that we don’t know how bad the fallout could be and thus how low the shares could go. Given the enormous short position in the stock, they could fall lower – but at some point many of those positions will unwind and force the stock higher. If you have a full position, we recommend simply holding to your shares until this settles; if you have room in your portfolio to add or initiate a position, we think this could be a fantastic opportunity. In the interests of full disclosure, members of Casey Research and/or the Casey Fund may be buying shares in the next few trading days, and maybe even selling some puts as a short-term speculation."

Deno G.