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NQ Mobile Inc. Message Board

  • getintoh20 getintoh20 Dec 13, 2013 2:26 PM Flag

    Toro CIO Says It Increased Stake in NQ Mobile Inc. (NQ)

    Toro's CIO said it increased its holdings of NQ Mobile Inc. (NYSE: NQ) since November 12th. Comments were made in an email obtained by Bloomberg.

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    • SEC Form ADV (Investment Adviser Public Disclosure) signed by Toro's CCO Harry Morad on September 9, 2013 indicates Toro managed $32 mil in assets, down from $120 mil reported in 2011 (pre-Ambow debacle) . Go to form ADV, section F (2) (a) If yes, what is the amount of your regulatory assets under management? Discretionary $32000000.0
      Yet, Toro bought about 7.6 mil ADS of NQ stock during Q4?? Even if they were lucky enough to buy at the low of around $9, that's a $68 mil buy-in. So at face value, it appears Toro is margined to the gills (2x or more) on it's NQ investment - not something I'd be happy with if my money was invested with Toro. So now, are you saying that Harry added more to the 7.6 mil ADR's already owned?
      Leverage aside, suppose they bought in at a cost higher than current PPS? NQ traded between $7.58 and $25.90 during Q4, so it's anyone's guess but Toro's. But given that NQ trades at 50% below the Q4 high, it is conceivable that Toro could be underwater once again. Then , let's suppose Toro went to China and found traces of improprieties at NQ. Would they dump their enormous holdings now at a loss or hope that Deloitte conveniently gives NQ a thumbs up (ala Longtop Financial Technologies) so they can exit at higher prices?
      You decide. One thing is sure, based on the ADV report, Toro can't afford to be on the wrong side of this trade. If they are, the Titanic will look like a dinghy next to them.

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