Daqo New Energy: An Extreme Mispricing Too Good To Ignore

Company Overview - Daqo New Energy Corp. is a holding company for one of the largest polysilicon manufacturers globally, Xinjiang Daqo, which is listed as a subsidiary on the Shanghai Stock Exchange [1]. Investment Perspective - The company is viewed favorably by value investors who focus on acquiring stocks at a significant margin of safety below their intrinsic value [1]. - There is a contrarian investment view suggesting that risk and return can be inversely correlated, leading to substantial bets when the risk/reward ratio is highly asymmetrical [1].