Oppenheimer is out this morning with some comments on Duoyuan Global Water (DGW), which plunged over 40% yesterday.  The firm believes the corporate governance concerns will continue to weigh on shares of DGW and despite the big price drop, shares will be dead money until confidence is restored.  They are bullish on China’s water treatment industry, but rising expenses will be another drag on DGW and pressure its bottom line.  They remain on the sidelines and recommend investors do the same.

Shares of DGW are recovering just a bit in pre-market trading, despite the negative comments.

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