http://caracommunity.com/content/bill-caras-blog-sep-16-2011

Regarding Silvercorp, the BNN interview of founder/chairman/CEO Rui Feng by a host I respect went off precisely as I thought it would. Rui is an intense man who doesn’t feel comfortable in the limelight.

He is a planner, a manager and a creator of wealth. Few people do it as well as him. So now that anonymous people have accused him of a billion dollar fraud he is furious. With emotions like that, with one sentence running into the next, his personal thoughts overtaking his ability to deal with direct questions in a second language, he could never be a suitable guest for television at that time.

At the end of the interview, however, I think we all saw that he has taken up the fight against “criminals” in the same way he has poured his heart into building shareholder value at Silvercorp.

The damage has been done and will take the Company many weeks and months to remedy. The Company will need to replace the many institutional shareholders who had to sell in order to avoid controversy. Obviously, once forensic accountants and investment analysts are able to validate the financial summaries and operations of the Company, the share price will stabilize.

Having given a great deal of thought to the Silvercorp matter, I now believe the core of the opposition started right in the Company’s headquarter city of Vancouver, in the Chinese community, with short-sellers working closely with associates in China. I think Sino-Forest and many of the other Chinese take-downs started with the same network of people. The Muddy Waters, AlfredLittle and latest website are, I believe, fronts for this anonymous network.

There is no question in my mind that US broker-dealers are involved in order to exploit the lax regulatory controls over illegal short selling in that country.

I also believe that it will not take long for the RCMP and FBI to determine the sources.

In any event, the bashing of China is a political football now that has been easily exploited by certain Chinese criminals, much in the same way that Italian mafia exploited their own people who had established a new life in North America, as my father’s family had. Despite the criminal aspects of a few, I am proud of my family background just as I know Rui Feng is of his.

Life moves on. It should not be so hard, but it is what it is and we have to deal with the challenges.

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http://www.metalaugmentor.com/reviews/silvercorps-newest-accuser-says-started-investigation-in-june/

A Small Purview into the Snake Pit - by Silverax

So Alfred Little is Simon Moore, a transient who doesn’t live anywhere but can subtract hundreds of millions of dollars from the share price of a legitimate company by simply publishing stupid and incompetent research?

I take it back, it isn’t Simon Moore who is stupid but rather the market. And that is great for us! We are in the midst of writing a point-by-point rebuttal of the Alfred Little allegations that haven’t already been addressed by Silvercorp in a devastatingly convincing fashion. For example, the part about assaying rocks that fell off the truck on the road from the mine to the mill — this is something so stupid that the company will not address it to avoid ascribing even minimum legitimacy to something this asinine.

Or what about the supposed “auction” in which 3 bidders ended up increasing the final “bid” price by a whopping 0.5 million RMB or 1% above the 45 million RMB list price? Can Alfred Little, Simon Moore, or whoever this guy is, be so stupid? Can the market? It took us less than 5 minutes of reading the auction documents that Alfred Little himself provided along with a sliver of logic to figure out that the bid was not the Western competitive one but the Chinese version that is made to look like it complies with the law while being designed to guarantee the pre-ordained result of transferring the 5% equity from a state-owned enterprise to its affiliate.

Silvercorp is not willing to state this officially given the obvious implications for its Chinese government partner but the facts of the matter should be obvious to even an idiot. And as for John Hemptom of Bronte Capital who asks why Silvercorp itself didn’t bid on the equity, the answer is that — despite normally having the right of first refusal – it could not legally do so if one of the proposed buyers is an affiliate of Henan Found.

It takes some type of twisted logic (no doubt requiring a fake appeal to Occam’s Razor again) to think that the management of Silvercorp — assuming it is perpetrating fraud — would be so stupid that it would not try to simply avoid all of the questions by simply buying the 5% equity for whatever price it wanted after arranging for a straw bidder.

SVM ... SHOULD BE AN INTERESTING WATCH NEXT WEEK!