NQ Mobile resumes trading, shares fall some more

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%.

From other sites
Comments (13)
  • Philip Marlowe
    , contributor
    Comments (1571) | Send Message
    Argh I wish I had shorted these guys. Just a couple of days before the Muddy Waters report came out, I got into a ridiculous argument with a couple of NQ pumpers here on SA. The argument resulted my contention that NQ's GAAP results did not look good and their contention that for a company like NQ GAAP results do not matter.


    There is an important lesson here that I would like to share with all of SA. When someone says that their company is so special that GAAP results do not matter -- consider shorting.
    25 Oct 2013, 02:20 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4206) | Send Message
    This is funny right now - stock bouncing off $10. I say it will break through later. Poor souls who invested in this.
    25 Oct 2013, 02:26 PM Reply Like
  • shakazoid
    , contributor
    Comments (246) | Send Message
    AM beginning to doubt this muddy waters guy , seem like folks tend to easily forget his previous inaccurate calls . The most recent one was American towers Corp (AMT)and I believe he was also in on the Questcor Pharma call last yr. He was on bloomberg this morning claiming co-CEO of NQ Omar Khan has nothing to do with the company par se but the guy himself just did a conference call from China with bloomberg to refute all his claims. He has refused to interact with the company directly according to Omar Khan.
    Personally I think Muddy Waters has been riding that one hit Sino fraud alert for too long. It is sad that Bloomberg news did not bother to question him about the false AMT allegations he made since he was also on their program after he published that.
    25 Oct 2013, 03:25 PM Reply Like
  • Patent News
    , contributor
    Comments (1474) | Send Message
    nope you are purely wrong sir. his track record of success on chinese frauds in strongly correlated to their frauds and failures and bankruptcies.


    do your dd instead of blaming others!
    25 Oct 2013, 08:17 PM Reply Like
  • LT-Investor
    , contributor
    Comments (55) | Send Message
    like EDU, FMCN, SPRD...all either trading or bought out at multiples at time of MW short attack.
    26 Oct 2013, 12:20 PM Reply Like
  • shakazoid
    , contributor
    Comments (246) | Send Message
    Blaming others in regards to what ?. Am neither long nor short the stock, so I have no idea what you are talking about.
    28 Oct 2013, 02:47 AM Reply Like
  • Mongoose7916
    , contributor
    Comments (233) | Send Message
    Don't remember ever seeing muddy waters with the QCOR drop. As far as I know Citron was the only one to take credit on that one.
    25 Oct 2013, 08:19 PM Reply Like
  • shakazoid
    , contributor
    Comments (246) | Send Message
    You might just be right on that one Sir, thanks for the correction . That's why I used the phrase "I believe he was also in on the Questcor Pharma call last yr." cos I was not certain of that one.
    28 Oct 2013, 02:49 AM Reply Like
  • Tufenk
    , contributor
    Comments (935) | Send Message
    $NQ as Eddy Murphy said to his guests in Trading Places : Get The F... Out! NQ stands for Not Quoted anymore.
    27 Oct 2013, 05:45 PM Reply Like
  • flfisherman
    , contributor
    Comments (2) | Send Message
    New to this muddy waters guy ,, what makes him such a power broker
    28 Oct 2013, 01:56 AM Reply Like
  • Tony Pow
    , contributor
    Comments (8049) | Send Message
    I have WARNED my readers many times not to buy Chinese stocks esp. small companies due to frauds like this. I do not trust the financial statements and they do not have similar SEC over there. It is a wild, wild west over there and I have been too many times. History has been repeated many times and hopefully seeds fell on good soil bear fruits and thank me for the warnings.
    28 Oct 2013, 03:51 AM Reply Like
  • Sellinpanic
    , contributor
    Comments (894) | Send Message
    NQ on the way up in pre-market, over $12 now. The whole Muddy Waters thing is the real fraud here, first initiate a bogus report to initiate a flash crash for shorting, then re-enter as a long, both ways -/+$10 profit per share in a space of just a few days. If this is not stock manipulation then what is?
    28 Oct 2013, 07:52 AM Reply Like
  • wnilkamal
    , contributor
    Comments (10) | Send Message
    NQ has declared their L2 deposits with the SEC in response to MW cowardice.


    29 Oct 2013, 09:11 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs