China New Borun's (BORN) New Distilling Process Could be Stale
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China New Borun Corp. (NYSE: BORN) shares are down Tuesday following a report from Citron Research denouncing the company's new "wet process" as nothing special, despite Borun promoting the process as one of its top competitive strengths.
The company apparently stated that it revolutionized the distilling business, but spent just $80,000 on the process for research and development in nearly 4 years.
"In simple form, if you tell Wall Street that your company should have a premium because you have a better mousetrap, and you want us to believe it, at least make sure you spent some cheese to create it," the Citron report stated.
The company apparently stated that it revolutionized the distilling business, but spent just $80,000 on the process for research and development in nearly 4 years.
"In simple form, if you tell Wall Street that your company should have a premium because you have a better mousetrap, and you want us to believe it, at least make sure you spent some cheese to create it," the Citron report stated.
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