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