(You can google 'Toro DD in Beijing: Day 1" to find the source of this article & discussion. Too much to paste all here)
"Day 1 of DD in Beijing:
We are working on documenting our observations on Part 3 but wanted to provide an update on our DD. We arrived in Beijing a couple of days ago and finished our first full day of DD, which included:
1. Verification of cash at SC. It's there.
2. Verification of YDT office. YDT is still where we last visited, same building, same section of their floor. We have pictures that we will upload in our next report. Our interviews confirmed the analysis and observations we shared in our Part 2 report.
3. Verification of channel partner contracts. We reviewed the original physical paper contracts (each signed and sealed by NQ and the partner in question) for all major deals executed in 2012 and 2013. This included, among various others:
-- Carrier China Mobile, with whom NQ has three separate contracts (e.g. security scanning software to protect China Mobile's own app store, deal with Music Radar, and a regional deal with the Guangdong province branch for comprehensive security products).
-- Top 5 Chinese OEMs: Lenovo, ZTE, Huawei, Coolpad, and Gionee
-- Music portals: TTPod, Kugou (top 3 Chinese music sites) and Yinlong
4. Retailer field trip. We traveled to the electronics retail section of the area in Beijing known as the "Silicon Valley" of China to visit several physical retail points of sale for handsets. In a large, electronics department store of sorts, we visited five separate retailers of NQ prepaid cards. We then walked over to DXT (a Best Buy-like physical electronics retailer with 3,000 stores across China) and verified that they sold NQ in their smartphone bundle product, which bundles prepaid subscriptions for a leading mobile game, a mobile lottery product, and NQ's security product.
Will post further updates as they happen if we do not have a chance to document our findings in a follow-up r
Thanks for posting this. At this point, it doesn't really matter if they're guilty or innocent. Once MW and Bloomberg have sunk their teeth into you, it's just a matter of time before you go under. I'm sorry for all NQ's employees.
It's not over yet. I just checked MW's track record on Wikipedia again. As of 11/4/2013 Muddy Waters has successes with 5 (out of 11) short positions, an achievable 45% success rate. And guess what, all of his success was between 2010 and early 2011. The companies he attacked after mid 2011 ALL proved him wrong. If he got NQ this time, it would be his first success in recent years.
Here's the list:
Orient Paper Inc. in June 2010 after which the company's stocks fell 21%.
Before: $8.49 After: $2.40 (As of 10/29/13 Ticker: ONP)
Rino International in November 2010, suspended trading in April 2011.
Before: $15.52 After: Delisted
China Media Express in February 2011, suspended from trading in March 2013 and delisted from the NASDAQ in May 2012.
Before: $12.27 After: Delisted
Duoyuan Global Water Inc. in April 2011, after which the company's stocks fell 37%.
Before: $5.49 After: Delisted
Sino-Forest in May 2011, shortly after which the company was suspended.
Before: $20.00 After: Delisted
Spreadtrum Communications Inc. in June 2011, after which the company's stocks fell 30%.
Before: $13.55 After: $31.00 (Taken private)
Focus Media Holdings in November 2011, after which the company's stocks fell 43%.
Before: $25.50 After: $27.50 (Taken private)
Fushi Copperweld in April 2012 after which the company's stocks fell 11%.
Before: $6.65 After: $9.50 (Taken private)
New Oriental Education & Technology Group in July 2012, after which the company's stocks fell 37%.
Before: $22.45 After: $28.08 (As of 10/24/13 Ticker: EDU)
Olam International in November 2012 after which the company's stocks fell 21%.
Before: $1.66 After: $1.56 (As of 10/24/13 Ticker: O32)
American Tower Corporation in July 2013 after which the company's stock remained unchanged.
Before: $74.71 After: $80.82 (As of 10/25/13 Ticker: AMT)