Duoyuan Global Water Falls 20% After Muddy Waters Report (DGW)
Muddy Waters Research, which has accurately accused Chinese reverser merger companies such as RINO International (PINK:RINO) and China MediaExpress (NASDAQ: CCME) of fraud, is now targeting Duoyuan Global Water Inc. (NYSE: DGW). The firm issued a Sell rating on the stock today with an estimated value of $1.00.
Muddy Waters estimates that the company's revenues are no greater than $800,000 annually compared to the $154.4 million DGW claims. This calculation is based on the the company's PRC audit report. In addition, Muddy Waters has accused DGW of engaging in undisclosed related party transactions that transfer money to DGW's chairman. Predictably, DGW shares have fallen nearly 20% on Monday to $4.42. The stock has lost around 84.5% over the last 52-weeks.
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