a) What is the true origin of the cash transferred to Standard Charter. Industrial Bank has a history of questionable financing. Was mgt struggling to borrow the piecemeal deposits into Standard Charter? Khan's reasoning behind the small deposit amounts is, "term deposit perspective, as they make sense from a capital management perspective" - makes no sense, a classic baffle with bs story.
b) Is the total NQ software user base inflated by 300%? Mgt is telling investors that they count each user only once, regardless of the number of NQ apps on the phone. The math tells a different story. If you reconcile this assertion to fit the story, mgt would need to count each phone pre-loaded with NQ software as a registered user, and each app installed or pre-loaded on a phone as a unique user - which egregiously inflates the actual user base.
c) Is Yidatong an NQ shell game? The biggest qestion, and if confirmed (and the evidence looks overwhelming), NQ revenues are likely inflated by 70%. Enron's cronies that caused ENE stock to go to zero would look like alter boys next to this potential bombshell.
NQ shares are still up 70% yoy, which is directly correlated to "stellar" 98% revenue and 69% earnings growth yoy. That said, a round-trip to sub $5 is a self-fulfilling trajectory should just one (IE Yidatong) of the three allegations above prove true.
We shall soon learn the truth
a) who did they borrow the money from? did they call someone up and say, hey friend I'm being accused of accounting fraud can I borrow 620M RMB so I can transfer it into my company's name? You might not get it back...
b. Actual Market share is irrelevant if cash and revenue is accurate. A smaller market share would help NQ because its easier to go from 1% to 5% than from 30% to 35% and a much bigger multiplier in that case.
c. They only use YDT in china. China revenue is only 1/4 of their total revenue. Where do you get 70%? please go back to school for math.