Stock Regulators: What Happened To Canada's Red Flags?

Despite Bre-X, Canada let another lulu get by

For four years, YBM Magnex International Inc. was a darling on the Canadian stock markets. The small Pennsylvania-based magnet maker grew from a shell company that traded for pennies on the wild and woolly Alberta Stock Exchange to a global industrial player whose stock climbed to nearly $14 a share last March, hiking its market value above $600 million. It was boosted by analysts from some of Canada's toniest brokerage houses. As a way to tap into promising trade with the former Eastern bloc, it stirred interest and recruited high-profile board members.

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