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  "documentTitle": "RINO International Corp. (RINO)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2010-11-10 00:00:00",
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  "notes": "This is a page from a short-seller research report (Muddy Waters Research).",
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      "text": "To the extent RINO has a reputation among steel mills, it is poor",
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      "text": "With intimate knowledge of the CFB method developed by the Chinese Academy of Science (CAS), the expert claims he is quite familiar with RINO's CFB desulphurization method. We showed him a description of RINO's technology and flow-chart in the 10K",
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      "kind": "paragraph",
      "text": "While RINO's obscurity may have escaped RINO, there seems to be growing awareness of this issue within the mainstream investment community. Two recently released equity research reports highlight greater than anticipated competition as reasons for downgrades.",
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      "text": "The FGD industry expert (from here on referred to as \"the expert\") is an engineer at Baosteel Group's in-house research institute. We have kept the identity of the engineer anonymous per his request. With over 20 years of experience in the Chinese steel industry and close to 10 years of experience dealing with desulphurization related research and projects, he is an expert. He personally participated in the development of Baosteel's proprietary Jet Cyclone Tower desulphurization technology, which has been successfully utilized in three of Baosteel group's completed FGD projects and stably operating for almost three years. He was also actively involved in the planning, design and implementation of the three FGD projects. The same technology is currently being implemented in two more FGD systems currently under construction at Baosteel.",
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      "text": "We received negative feedback on RINO's work from one confirmed client and one fabricated client. Panzhihua Steel confirmed that RINO built the smallest of its FGD systems (for a 180 square meter sinter). The Panzhihua employee stated, \"We are not satisfied with [RINO's] technology because the desulphurization rate is lower than what we want.\" He further stated that Panzhihua is unlikely to engage RINO in the future for FGD projects.",
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      "text": "An employee from fabricated client Lai Steel Group stated \"I've heard that the sinter built by RINO in Jinan has stopped running. Their technology has no advantage beside not producing wastewater.\" We confirmed that RINO built one FGD system for Jinan Iron & Steel Group in 2005. Jinan Iron & Steel Group refused to comment on RINO's work.",
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      "text": "We reviewed a report provided by the International Financial Research & Analysis Group on an interview with a Bao Steel engineer who is familiar with RINO's circulating fluidized bed (\"CFB\") technology. Based on our own work, we believe that the following report is accurate:",
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      "text": "To the extent RINO has a reputation among steel mills, it is poor",
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      "text": "RINO's technology is inferior to competing semi-dry technologies in the China market",
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      "kind": "quote",
      "text": "We are not satisfied with [RINO's] technology because the desulphurization rate is lower than what we want. — Panzhihua employee. I've heard that the sinter built by RINO in Jinan has stopped running. Their technology has no advantage beside not producing wastewater. — Employee from fabricated client Lai Steel Group.",
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      "kind": "source-note",
      "text": "31 Deng, Michael and Chen, Honghua, RINO International Corp.: Increasing Competition May Undermine Profitability, Cannacord Genuity (October 29, 2010)\nShapiro, Dmitriy, RINO International Corporation, Global Hunter Securities, LLC (November 2, 2010).\n32 www.ifragroup.com.",
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      "text": "Introduction",
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