Deer Consumer (DEER) Is the Subject of a Negative Report
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Shares of Deer Consumer Products, Inc. (Nasdaq: DEER) are slightly lower in mid-day trading following a report from Alfred Little highlighting the stock as the latest Chinese reverse merger fraud.
In his research report, first reported at ZeroHedge, Little claims that that the company, which went public with the held of the notorious Benjamin Wey, has "conspired to defraud investors by exaggerating it revenue, profit margins, and income on its Chinese domestic sales of its low-end kitchen appliance products. Furthermore, DEER management misappropriated $11 million in company funds through a questionable recent land purchase and also failed to disclose direct competition and other serious conflicts of interest arising from certain unconsolidated related parties."
Little said the company's high margins are impossible and channel check reveals slow sales, no brand name, and either significant channel stuffing or fabricated domestic sales, among other things.
The full report can be found here.
In his research report, first reported at ZeroHedge, Little claims that that the company, which went public with the held of the notorious Benjamin Wey, has "conspired to defraud investors by exaggerating it revenue, profit margins, and income on its Chinese domestic sales of its low-end kitchen appliance products. Furthermore, DEER management misappropriated $11 million in company funds through a questionable recent land purchase and also failed to disclose direct competition and other serious conflicts of interest arising from certain unconsolidated related parties."
Little said the company's high margins are impossible and channel check reveals slow sales, no brand name, and either significant channel stuffing or fabricated domestic sales, among other things.
The full report can be found here.
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