Following a long halt in the wake of an official statement and CC to discuss Muddy Waters' fraud accusations, NQ Mobile (NQ -2.3%) has resumed trading. Shares opened sharply lower, but have since bounced a little after falling 47% yesterday.
The fact NQ has disclosed all of its cash is classified as Level 2 (requires mark-to-market accounting) rather than Level 1 (is accessible and actively traded) is raising eyebrows, and fueling questions about operational risk.
Prof. Allen Huang. "I would seriously worry if a firm doesn’t have any cash on hand and no active market to sell their so-called cash equivalents. If you can’t even trust the cash, what can you trust?"
NQ has formed a special committee composed of four independent directors to deal with the allegations, which have spawned plenty of class-auction suit PRs from law firms. MW, meanwhile, is using Twitter to counter NQ's responses.
Update (3:41PM ET): Shares are plunging again. They're now down 15.9%.