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  "docSlug": "0900eea60013",
  "documentTitle": "New Oriental Education & Technology Group (EDU)",
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  "authorName": "Carson Block",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2012-07-18 00:00:00",
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  "notes": "The slide uses a table to demonstrate that dividends are funded by capital raises rather than operational cash flow, supporting a fraud-preemption thesis.",
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      "text": "We believe that the dividend declaration was made to preempt a report from Muddy Waters that EDU knew would be damning to the Company's credibility.",
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      "text": "Cash Flows: $92,686",
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      "text": "EDU's dividend is returning capital that EDU raised from shareholders and therefore does not validate reported numbers. It has become common for China companies suspected of fraud to declare dividends...",
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      "kind": "paragraph",
      "text": "We experienced the feeling of EDU attempting to preempt us again on July 11, 2012... EDU only became aware of the investigation on July 13, 2012. Thus, EDU's VIE press release seems to be related to our work...",
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      "text": "In FY 2004, EDU's cash flows were rocked by the RMB 100.0 million refund... We believe that the dividend declaration was made to preempt a report from Muddy Waters...",
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      "kind": "quote",
      "text": "The Company believes that New Oriental China's equity interests should only be held by the shareholders whose interests are more closely aligned with those of the Company...",
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      "kind": "quote",
      "text": "Michael, why are you running? — Muddy Waters Research",
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      "text": "40 On December 16, 2010 CCME, declared a dividend of 5% - 10% on future profits (after being rumored to be a fraud).",
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      "kind": "table",
      "text": "Nathan Financing Cash Flows (USD $000's) table showing proceeds from shares, options, dividends, and repurchases from 2004-2011.",
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