Seeking Alpha

Akram's Razor

View as an RSS Feed
View Akram's Razor's Comments BY TICKER:
Latest  |  Highest rated
  • NQ Mobile: A Neutral Observer's Take [View article]
    So, based on this new data do you still say that 'related' has nothing to do with it. If 9h was actually founded by zhou and then renamed and transferred to xu doesn't that jump out at you. Also, the fact that xu worked at an SP owned by zhou before nq which did not come to light until recently, and that she now owns an sp that has been critical to nq, doesn't catch your eye. I mean why was this not disclosed before? She seems to have had a good reason to not share this history?

    And why does a company that seeks to maximize yields via term deposits lend cash interest free to a carrier biller with virtually no overhead and favorable payables to receivables spreads?
    Nov 7 09:29 AM | 1 Like Like |Link to Comment
  • If You Believe In Yidatong (NQ's Largest Purported Revenue Source), You'll Believe In Santa Claus [View article]
    So the convert counts as cash but not as a liability. It's more like 115mil cash vs 600ml cap
    Nov 6 04:06 PM | 1 Like Like |Link to Comment
  • If You Believe In Yidatong (NQ's Largest Purported Revenue Source), You'll Believe In Santa Claus [View article]
    NQ Liabilities....?????
    Nov 6 03:25 PM | Likes Like |Link to Comment
  • NQ Mobile: A Neutral Observer's Take [View article]
    This is about the court of public opinion that is the market. There are plenty of reputable independent parties that do this which would be more than willing to provide their services. Just like all the red flags....not conclusive....but at least in this case would seriously reverse the tide.
    Nov 6 07:18 AM | Likes Like |Link to Comment
  • NQ Mobile: A Neutral Observer's Take [View article]
    I'll take a look. As for nq, point blank question here considering all that has transpired. Are you worried about a material restatement? Or to be even more specific, what would have to happen for you to come out and say ' we are selling this thing...we have had enough". I know that would be a tough pill to swallow, but investing requires being able to do that. So, I am curious what would change your mind. Because it would seem all your comfort at this point comes from management access, and the controversy here would appear to be that some people flat out think they are lying. So, anything that comforted you ten months ago is not going to be any different then what is comforting you today. Basically, if I was in your shoes I would be paying very close attention to their behavior and how it might have changed based on your frame of reference. You probably should have taken a human lie detector along with you to any meetings, and then just had him give you an assesment once you were done.

    Personally, if I was mgmt and I wanted to shoot MW out of the sky, I'd offer to take a polygraph and have MW submit the questions. This would put an end to all this nonsense. Yes, they are not perfect, but in this case confidence wise it would go a long way.
    Nov 6 06:18 AM | Likes Like |Link to Comment
  • Tweet Tweet: #IPO#Valuation#Sina [View article]
    Market is getting a lot more difficult to read in this space. There is now a headwind starting to form. Would seem twitter is the end of this party in tech for now. But yeah sina shud benefit. To be frank its the only one im holding long vs a lot of shorts.
    Nov 6 04:29 AM | Likes Like |Link to Comment
  • NQ Mobile: A Neutral Observer's Take [View article]
    Fair enough. I too typically have highly concentrated exposure with respect to portfolios I run, and often in highly time sensitive options. So, I am quite familiar with needing to have virtually zero margin for error. Its not for the faint of heart. But i will tell you nq is not the type of stock a value oriented guy should be looking at. This is something for a high risk growth chasing guy, at which point i'd say you should have a few of these bullets spread across the portfolio becuase the homeruns should generate 5-10x and more then offset the occasional flop/problem child.

    For what its worth, I actually know vnet quite well, well at least the vnet that went public as I have not looked at it since (so maybe knew is more approrpriate as its now nearly 3 years). It was a large holding for an investment firm I used to work for on its IPO. We met with managment and the whole shibang. I will say i was quite against investing as i didn't understand why we should be capitalizing this company to go out and do acquistitions and grow capacity. Struck me as a very bubblish ipo. And in comparison to western peers, made absolutely no sense.
    Nov 6 03:53 AM | Likes Like |Link to Comment
  • NQ Mobile: A Neutral Observer's Take [View article]
    I used the term 'related businesses' because they are housed in the same office and supposedly majority owned by the same lady. Also, with NQ pitching themselves as a user acquistition engine for all things mobile including gaming, the fact that her critical to nq security related biz is housed with a gaming company is not exactly irrelevant. But there is no denying that xu's success story could be as you described, however, i hope you see how her going from employee to owner of a critical component of nq's business would be met with skepticism from a external observer.

    As for the buybacks, i have a whole lot of evidence of tech companies that where ROCKS who still stumbled big time because of buybacks. And I have even longer list of smaller names like NQ who literally destroyed their stocks thanks to buybacks. People building a 100 year franchise don't go from buying back stock to raising a convert to making acquistitions to back to buying back stock in a matter of months. It is simply a sign of the wrong type of management you want building a growth company.

    And yes based on what I have seen so far, I think i am right to have a 'low' view of the company. However, I have views long and short on plenty of companies which I have shared on here over the years. You on the other hand seem to literally to be almost solely engaged in bullishly covering nq. And it appears that going back to early this year that you have had to contend with highly suspect views of the company.(i read your instablog post just now)So, I find it ironic that my motives commenting on this situation have been questioned by posters but that yours have not.
    Nov 5 10:27 PM | 1 Like Like |Link to Comment
  • NQ Mobile: A Neutral Observer's Take [View article]
    I agree whether she was a consultant or employee and for how long is not that much of interest to me. But the transition from employee to majority owner of these related businesses is something that you don't see very often.


    As for the buyback, you are simply wrong. No matter how tempting it may be you do these transactions, they should be limited until the point when you have built a ROCK and are simply throwing off insane excess cash that you have very little idea what to do with. If Nokia and hpq can get into trouble....and bbry is running around seeking cash to shore up its balance sheet.....nq has no business doing buybacks of the size they have been doing.
    Nov 5 03:59 PM | Likes Like |Link to Comment
  • NQ Mobile: A Neutral Observer's Take [View article]
    Since you are on site, I have some questions.

    1) How did xu go from an employee to owner of these companies? Seed capital came from whom? Who are the shareholders of these two entities she runs?

    2) What's the revenue breakdown from these partners?

    3)Why with all the growth ahead do they buy back stock?

    4) Why did they choose to hold nothing in level 1? Does their cfo understand they are a growth business and not an asset mgr trying to maximize yield?

    5)What exactly is the purpose of a US CEO if he doesnt know the top 4 customers?
    Nov 5 02:55 PM | 3 Likes Like |Link to Comment
  • NQ Mobile: A Neutral Observer's Take [View article]
    I think you need to be able to tell the difference between reports. Everything between snof and nq was in my opinion weak. He was nowhere near as aggressive language wise as well as pr wise, and frankly speaking the stock impact in every case lasted for two seconds. And i for one longed fmcn on his report. This time is different. He is either right or guilty of quite reckless and libelous statements.
    Nov 5 02:21 PM | Likes Like |Link to Comment
  • NQ Mobile: A Neutral Observer's Take [View article]
    Yes, I forgot to mention that excessive press releases that again are hard if not impossible to tie to discernable revenue are another red flag I usually look for. I suggest you count the IOC press releases about major partners over the last three years, that name drop the like of EXXON, BP, etc...and then go find one dollar of revenue from all of them.
    Nov 5 09:28 AM | 1 Like Like |Link to Comment
  • NQ Mobile: A Neutral Observer's Take [View article]
    The entire Google App store took in 50ml in revenue in q3. Nq guidance for q3 is 50-51. Lookout, the global leader in this space, has 45ml users and raised money at a 1bil valuation a few weeks ago. Qihu which has 70% mkt share gives away their product for free. Nq claims more active users than all of lookout. Reconciling how their 'take' model is generating these revenues off pre-installs is not exactly easy. I think many 'little kids' would struggle with it. Hence, all the mumbo jumbo about platform, enterprise, gaming, etc
    Nov 5 04:30 AM | 1 Like Like |Link to Comment
  • NQ Mobile: A Neutral Observer's Take [View article]
    Actually, for full disclosure sake I did finally collect from SA last month. The email reminders finally got to me. I can say that wire changed my life. Going to disneyland.
    Nov 4 04:22 PM | 2 Likes Like |Link to Comment
  • NQ Mobile: A Neutral Observer's Take [View article]
    I am quite familiar with classifcations. And yes by definition, LEVEL 2 is not considered LIQUID. We mark based on quoted prices in relatively much less active markets versus any level 1 instrument which is considered Liquid. And no, showing what they showed was not sufficient because frankly speaking I still don't fully understand what it is they are doing cash mgmt wise. I'd like to understand why they are holding zero liquid cash on hand. And not instruments that can be converted in cash or maybe borrowed against when a short seller publishes a report saying i most likely have no cash. Berskshire, Bidu, Sina, Apple, and Msft feel holding liquid cash is a necesseity despite being able to do the same thing, then why this mgmt team concluded this is no big deal.
    Nov 4 04:05 PM | 1 Like Like |Link to Comment
COMMENTS STATS
975 Comments
1,060 Likes