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

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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