Muddy Waters Strikes Again: Target - Duoyuan Global Water (NYSE: DGW)

Tyler Durden's picture

Another day, another potential NYSE Chinese fraud. Muddy Waters starts coverage on DGW with a Strong Sell and a $1.00 target price.

Just released:

Muddy Waters LLC has initiated coverage on Duoyuan Global Water Inc. (DGW) with a Strong Sell rating and an estimated value of less than $1.00.

  • We estimate DGW’s actual revenue is no greater than US$800,000
    annually, versus the US$154.4 million it claims. Our estimate is based
    on DGW’s PRC audit report, which is highly reliable.
  • Muddy Waters caught DGW red handed forging its PRC audit report. DGW’s actions validate the audit report’s significance.
  • Our extensive surveillance of DGW’s factory confirms our revenue estimates.
  • We identified four errors in DGW’s US audit, which indicates the auditor was sloppy.
  • DGW has much in common with its troubled sister company, DYP. We believe these commonalities further DGW’s fraud.
  • DGW engages in improper undisclosed related party transactions that transfer money to its chairman.

Video of report allegation evidence:

And Full report:


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Spalding_Smailes's picture

But, but, but  ..... I thought China was the next Reserve Currency, a bastion of truth, safety and new king was upon us .... Lol

taraxias's picture

Who said that on here moron? Are you making this stuff up as you go along?

No fiat currency that is not backed by gold has a future. Not the USD, not the yuan, not even the (in)famous SDR.

Print this and post it over your desk, read it 100 times a day until you internalize it, THEN may be you'll stop spewing your nonsense on here.

Spalding_Smailes's picture

I think ZH herself pushed China for this crown over the last 3 months ....


Dumbfuck .... Turn off the t.v. and read something.

taraxias's picture

ZH "herself" ???? PMSL


That's a new one. For someone who's obsessed with trashing ZH you seem to be on here a lot.

Have you printed what I posted yet?


Spalding_Smailes's picture

Get back in your clown car, Nimrod. You dumb•fuck ...

Who's trashing ZH, great info 24/7 I'm trashing your stupidity.


China "Attacks The Dollar" - Moves To Further Cement Renminbi Reserve Currency Status


Chinese Inflation Heats Up Again As PBoC Takes Another Step To Establish Yuan As Reserve Currency





Spalding_Smailes's picture

Hey look, its Taraxias with fucking egg on said face .....


I'll take your post, print it out and then I'll wipe my ass with it. Everything you post is trash. Book it.


What's up big mouth, got a dick in said mouth now can't talk ?

taraxias's picture

Your father marrying his first cousin is finally beginning to catch up to you.

Picking and choosing a ZH title that suits your birdbrain's position is the best you can do?

Move your posts over to MarketWatch retard, you'll find a better audience.

And before I can put my dick in my mouth, I'll have to take it out of your mother's ass first.

Spalding_Smailes's picture

Picking and choosing.... ? Two threads on China's reserve status filled with doomers like yourself all screaming " the USA is done I tell ya, shes done ......"

But , but, but you said no one was talking about China's reserve status, then when I said it may be ZH you question that .... Then I produce facts backing up my original post.

Please, please read something, anything, turn off glee and educate yourself before spewing crap. 

covert's picture

what's the point? you can't short it at that price.

maybe you can short the next enron?


IBelieveInMagic's picture

First we sent them our toxic garbage -- they returned it as trinkets and jewelry to wear on our bodies!

Next we sent them our junk paper assets -- now they return the favor with garbage stocks!

Damn, the Chinese play a good game of ping pong!

aint no fortunate son's picture

looks like an undiscovered gem to me!

puke. puke. bleaaaaghhh.

Misean's picture

Weren't fake companies all the rage in the U.S. in 1929?

Howard_Beale's picture

This stock being pimped all over the place about a year and a half ago.

Matxeu's picture

ni hao?  ni hao ma

CPL's picture

Tyler I wanted to thank you for your last call on shitty Chinese companies, I made some serious bank on a short sale.  I'm looking into DGW right now.  If the news is "good" as in the news the company is a raging piece of bear shit. 

You last call netted me a nice, tidy 50%...basically I need to get off my ass and donate to give you your cut of the pie.


Damn it...nothing at Waterhouse to short...nothing on eTrade...gotta check Think or Swim.


RobotTrader's picture

These Chinese girls look like they are doing OK..



long juan silver's picture

None of those stocks came public in US markets as RTOs either.

Careless Whisper's picture

there must be some mistake. this company is listed on the new york stock exchange. they very picky.

CPL's picture

Considering that any asshole that can underwrite a stock does, can and will.  The regulations that are in place are pretty filmsy for listing.


Not much difference between OTCBB - PINK  and the "official" exchanges anymore.

Careless Whisper's picture

you might be right. CCME and CAGC went pfffftt in a new york minute.

long juan silver's picture

Weird because it's like the only holding not media-centric.

Seasmoke's picture

All in less than 2 years !

DNB-sore's picture

so crime pays out like I've seen over here.

Didn't the caller dial the wrong number or there was a kind of technical problem to reach the desks?

I'm pretty sure ZH does have more intel verified before putting this post online, so if there is more info;

short these thieves


Xibalba's picture

It's a holiday in China for today and tomorrow. 

DNB-sore's picture

while I was typing there was an update, thanks!

magpie's picture

Well one can say this was a planned ponzi in the first place and pink sheet material.

Or maybe the easy money spigot is being turned off, and the shoals of fail and fraud emerge in the receding tides of liquidity.

Jrsurf00's picture

Appreciate this and all of the other posts regarding Chinese frauds. Gotta love actionable intelligence. 

Phillips Capital's picture

rats... my broker is saying it's not available to short. hm. 

CPL's picture

nothing left to short.


Goging to have to make a google news filter on "china chinese fraud stock price"


Might be a big assed delivery though.

Phillips Capital's picture

yeah that's what i figured. short interest maxed out... it's at 29% right now. wow! 

topcallingtroll's picture

A famous chinese artist has disappeared, presumably being held by the secret police for daring to speak out about freedom of expression, yet there are some america.haters so blinded by paranoia and.hope for.collapse that they have been cheerleaders for.the yuan replacing the dollar. and that is just a mere sampling of the posts about chinese going to rub our faces in the dirt. There is way more corruption in china with their poisoned toys and killer toothpaste. The rest of the world trusts the usa more than the chinese. That third world.corrupt dictatorship is nowhere.close to replacing the usa and the dollar. Absolutely no one trusts them except myanmar north korea russia iran amd libya. That is their basis of support?

Andy Lewis's picture

I'm more of a Little Walter fan myself.

Bartanist's picture

Everywhere I went in China, company owners and managers all strive to go public so they can cash out before the end comes.

... and because they have little to do with their money, they buy apartments and further contribute to the currently 60 million vacant units.

thames222's picture

More fraud from the Chinese, you can't say these guys aren't inventive.  DGW is for sure a fraud company.