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  "documentTitle": "Orient Paper Inc. (ONP)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson Block and Sean Regan",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2010-07-02 00:00:00",
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  "notes": "The text serves as a founder's manifesto explaining the firm's origin story and investment philosophy regarding Chinese companies.",
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      "text": "ONP and its attendant hype opened our eyes to the massive need for due diligence in China equity research.",
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      "text": "There are good Chinese companies listed in the US. We intend to identify and recommend Strong Buys on them. When we do, we think that investors can be assured that these companies have been vetted more thoroughly than anybody else has done. But for the meantime, there are a lot of low quality companies that are being touted and pumped. This touting and pumping is US-driven. Unfortunately, there are those in the US who are complicit - if not orchestrating - these scams. Small China stocks remain caveat emptor for the time being.",
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      "text": "A number of my closest, dearest friends are Chinese. But the fact is that many of the small companies view analyst meetings as competitions for the money analysts represent. It's often a game where anything goes on the company side. We Westerners are not used to that system. To really understand how this works, you have to get burned on the ground here. With first-hand understanding of how business is conducted in China, you can see a lot more. Just like how a factory expert can identify far more issues than can a novice.",
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      "text": "Sean and I were mildly shocked by Pearson's video and the positive reviews that ONP continued to receive. We've seen this across all industries in China: Westerners wanting a piece of the China pie so badly that they're willing to believe anything. I've had a fairly rare experience here in that I've done business at the multinational level (as an attorney with Jones Day), and then I climbed down into the trenches by opening Mainland's first international standard self storage company.",
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      "text": "Thus, WAB never made an offer to ONP because ONP failed due diligence. My father felt, and I have to agree, that had WAB made an offer to ONP, it would have been accepted. Certainly that would have been an easier path to getting paid than we took with Muddy Waters, LLC.",
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      "text": "ONP and its attendant hype opened our eyes to the massive need for due diligence in China equity research. Thus, the plan came together in between running our other businesses. We decided that we would form the service and issue an inaugural report on ONP to demonstrate our due diligence capabilities.",
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      "text": "After some time in the trenches as an entrepreneur here, I came to realize how ivory tower the multinational world (in China) is. My former Chinese colleagues - well educated, progressive, and diligent - are the cream of the crop here. The mistake too many foreign businesspeople make is thinking that the English speaking, relatively polished people they interact with here are representative of China. This myopia is a major factor affecting equity research on Chinese companies.",
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      "text": "On How We Came to Form Muddy Waters, LLC",
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