Muddy Waters Could Be a Victim of Its Success
Over the past few months, the biggest target of the China-specialist short-seller Muddy Waters Research has been New Oriental Education (EDU). In July, when Carson Block's company accused New Oriental of fraudulently selling franchises to pump up revenue, the stock dropped from $22 to under $10 in one day. Its 52-week high is close to $31.
After Muddy Waters' attack on Canadian-listed Sino-Forest in June 2011, which led to that company's delisting, the short-seller had been riding high. In some ways, its reputation was just as powerful in its niche of Chinese companies as David Einhorn's is today....455 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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