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NQ Mobile jumps as more funds transferred; MW issues new report

  • Following additional fund transfers (previous), NQ Mobile (NQ +14.6%) says it now has $103M in an account with U.K.-based Standard Chartered bank. NQ, attempting to address questions raised by Muddy Waters and others about its cash balances, also reiterates the $166M it recently raised through a convertible debt account will reside in a Hong Kong account. (PR)
  • The announcement comes as Muddy Waters issues a fresh report on NQ, one that focuses on NQ's relationship with top customer Yidatong (accused by MW of being a shell company). "If you believe in Yidatong, you'll believe in Santa Claus," MW declares.
  • Among other things, the firm notes the reception desk employees at Yidatong's main office were unaware of the company, and once more highlights Yidatong owner Rong Zu's history as an NQ employee.
  • Shares were crushed yesterday after Piper suspended coverage. They remain down over 50% from where they traded before MW's report arrived.
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Comments (12)
  • Mattster
    , contributor
    Comments (164) | Send Message
    What a grinch MW is short Santa Claus too
    6 Nov 2013, 02:57 PM Reply Like
  • daxs9170
    , contributor
    Comments (6) | Send Message
    If MW turns out to be wrong, you realize they are the anti-Grinch as they have given investors of NQ an extremely low price to bring down their average cost base.
    6 Nov 2013, 03:13 PM Reply Like
  • Sellinpanic
    , contributor
    Comments (669) | Send Message
    I only know that Xmas is soon and Santa has visited my family every Xmas so I'm a firm believer and my kids are also. I just asked them about Santa and they just stared at me and asked, "Who is so stupid that doesn't believe in Santa?".


    Enough of this MW crybabies, they have no right to cancel Xmas from us also, they can rotten with their boatloads of shorted money, what is the point having it if you have to tell even your kids that Santa doesn't exist. Carson Block will die all alone in his own misery.
    6 Nov 2013, 03:16 PM Reply Like
  • canb888
    , contributor
    Comments (336) | Send Message
    They released another report and the stock went up significantly today, 17+% right now)! Must be that people are looking for facts instead of being scared by words such as "fraud", "zero", "90% non-existing" etc. The cash was supposed to be non-existing. Now they are there, what would MW say? They are fake cash not real dollars? This has been a good trading with a long bias, i.e., buy low, sell high, buy low again but never on a net short. Has been as good as EDU and FMCN trades so far.
    6 Nov 2013, 03:54 PM Reply Like
  • W121amg
    , contributor
    Comments (43) | Send Message
    MW article title should tell you all you need to know about MW silly reindeer games. How could anyone take them serious?
    6 Nov 2013, 06:05 PM Reply Like
  • zorrba
    , contributor
    Comments (418) | Send Message
    Why in the world would NQ get involved with **transferring** funds - instead of doing the most obvious thing in the world. -just simply say where the money is and show it???


    I will bet that the answer is NQ needed outside HELP in rounding up some cash from conflicted parties to aid the smoke and mirrors game.
    7 Nov 2013, 01:32 AM Reply Like
  • Sellinpanic
    , contributor
    Comments (669) | Send Message
    Pretty powerful outside help then...$103 mil in cash under a week, you know a smoke and mirrors company would not get such an amount collected at this time and age when money loaned is under very strict control especially in China if you have followed financial news for the past 2-3 years.


    Also a UK bank like SC is under very tight money laundering controls, they have to verify every cent that is transferred into their accounts or they will be responsible for aiding a criminal organization. The money is legit, no question, MW is the only true and real fraud here, why don't we start checking their accounts? I think we would find some very interesting things in them, what about the money in their offshore accounts in Cayman Islands? I bet my whole portfolio that it wouldn't stand to a similar scrutiny like NQ has had to go through.


    This is market manipulation how it stands today, in order to make flash profits choose an appropriate target and mount a coordinated attack with articles ready with little change needed to be published at needed intervals to suit your attack strategy.
    The whole point is that it doesn't matter if MW is right or wrong, their only aim is to cause market fear and that is the only target they aim at. If you really think that MW is being a 'Good Samaritan' and trying only to point towards the frauds, you are badly mistaken. In truth, they don't really care, they only care how much money they can make as quickly as possible. In addition, they have hired lawyers to word their "reports" so that even if they are sued, they can easily deny everything and just inform that it was their free opinion they were expressing. Go into MW site and read their disclosures on their reports, you'll get the idea.


    The markets just give too much credit at MW and it is dead easy to scare the markets to an overreaction, but this latest Santa Claus report is just the last resort to desperately try continue the attack, you know their credibility is already waning off. MW would have been better off in not releasing this latest report, but I guess they can make mistakes also.
    7 Nov 2013, 04:25 AM Reply Like
  • JMstocks75
    , contributor
    Comments (250) | Send Message
    probally got a payday loan with a car title
    8 Nov 2013, 11:26 PM Reply Like
  • guggsi
    , contributor
    Comments (18) | Send Message
    but excuse me: its not only MW making checks and finding grace discrepancies. what about the findings of Chinese journalists and researcher? what about the inconsistencies with the revenue figures? what about the issues regarding Yidatong and Xun Ri?
    ok: the money might be there. but also Sino Forest had cash....which then swindled slowly. So 103 Mio at Stanchart is proven? ok, then then NQ is valued at 103 Mio max.
    how can anyone ignore the red flags and pretend NQ is proper?
    7 Nov 2013, 06:45 AM Reply Like
  • Sellinpanic
    , contributor
    Comments (669) | Send Message


    Remember MW's first accusation, no cash? Check.
    Remember that MW accused NQ of being a total fraud?


    Well, when cash is produced at request, everything else is basically irrelevant. A totally different matter is debating of NQ's business practices etc., but then you debate on the business not jump to fraud which is a very serious accusation.


    The rest you can just read it up for yourself from Bloomberg. Of course if you can read Chinese and more or less trust these Chinese "journalists" then go ahead, trust them.


    And by researchers, do you mean yesterday's article of MW's affiliate Goldbaum Research? The whole article is based "on what a contact told me". That is really trustworthy...
    7 Nov 2013, 07:47 AM Reply Like
  • ayu3321
    , contributor
    Comments (15) | Send Message
    If there is the inconsistencies with the revenue figures between YDT and NQ, may be YDT's problem, not NQ's. As long as the money from YDT's banking account to NQ's account is real and audited, NQ is not a fraud.
    7 Nov 2013, 08:20 AM Reply Like
  • ayu3321
    , contributor
    Comments (15) | Send Message
    Take look at this, a giant hole in MW's report
    7 Nov 2013, 12:07 PM Reply Like
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