Sino-Forest Corporation (SNOFF)

[roiresearch]

2 questions:

1) why aren't they halting the trading

2) from the most recent earnings:

As the share price decreases, the equity convert option becomes less valuable (less costly to the Company) and therefore results in a gain being recorded in the income statement. Based upon the closing price of the Company's common shares on Friday, June 10, 2011 of $4.47 per share, the Company would record a gain from fair valuing the option of approximately $450 million in the Company's Q2 2011 income statement.

Now that the stock is under $2, what kind of gain is Sino looking at?