Oppenheimer & Co. is out with a research report on Duoyuan Global WaterDGW
. It rates shares at Perform, and does not have a price target. In the research note, Oppenheimer writes, "DGW shares fell by >40% yesterday on concerns of potential internal control issues deriving from sister company, Duoyuan Printing (DYP
). We expect the concerns on corporate governance to overhang DGW, especially given the company has been struggling to restore investor confidence. Despite the sharp share price drop, DGW looks like dead money to us. Our thesis on DGW is unchanged: While we are positive on China's water treatment industry due to the government's committed spending on environmental protection, rising operating expenses (from SG&A or R&D) will keep DGW's bottom-line under pressure. We remain on the sidelines and recommend investors to stay away from the turmoil." Shares of Duoyuan Global Water were hit hard yesterday, losing 41.5% to close at $12.10. Get free trades attradeMONSTER!
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