No buyback will be seen. After all, why buyback stock when mgt doesn't want to pay the $173 mil debt put option next year either. At the end of the day, it makes no sense to deplete what NQ mgt perceives as "their" money to buyback shares that are worth less than they paid. ER will be back to the usual, with one-time events like the SCC "clawback" last quarter unrepeated - losses will continue - and MAU's ala 1999 will be mgt's pump du ER call. The $625mil FL Mobile valuation is a fairytale.
Can only imagine the SEC's looking @ KBIO...lol
How much new stock does he intend on issuing?
Too bad FL Mobile growth is decelerating, only +15% YOY - and too bad FL Mobile has no active publisher ID on iTunes app store. I think you need to visit the origins of Feiliu before you preposterously refer to FL Mobile as an example of a pre-eminent gaming co in China. Xi is referring to Netease, Netease, Netease.
RPL owns 50million class B supershares with 10x voting rights(which equals just over 50% voting rights), equivalent to 10mil ADS. Why haven't they sold any shares, you ask? I ask you: Do you think the three stooges want to lose control of the co?? If they did, all those clever deals to fleece investors could never be possible. No increases of authorized shares to 1.5 billion shares possible, no egregious $20mil/qtr SBC, no acquisition of non-core bizartre cos of friends and families, etc, etc.
On another note concerning brilliant investors like Tom Steyer and Ding #$%$:
No one, not even Steve Cohen, is immune from losing big - and those who aren't selling a share may lose even more. Do the math on Steve:
Timeline of events for Steve Cohen's SAC Capital stake in NQ Mobile:
Steve Cohens's SAC Capital had 1000 shares on June 30, 2013
On August 28, 2013 SAC Capital increased it's stake 150,000% to 5.5% at $16.76
On December 31, 2013 SAC Capital decreases it's stake to .5% at $14.70
On March 14, 2014 SAC Capital increases it's stake to 5.1% at $18.28
How many millions did he lose? Again, do the math!
In response, only one quote comes to mind: "And that's the way it is" - Walter Cronkite
TJ, are you referring to Farallon Cap, parent of ChinaRock who dumped 2 million bonds on Jan 28, 2015? They bought back bonds coincidentally after realizing losses of $22mil on Ding's horrific NQ common buy-ins. Getting back to even often involves desperate measures which have nothing to do with brilliance. Again, why were the bonds priced dislocated from your perceived reality that NQ will honor next year's put option?
jt: FL Mobile, Nationsky, or even Tianya so-called deals are irrelevant to NQ's bond price. Any and all current and past NQ bondholders know that NQ is obligated to pay full par $173mil by Oct 2016. This October 2016 put option was in place during ALL bond trading activity since the 2013 offering, as written into the original bond disclosure. Nonetheless, bond investors are still discounting risk by a whopping junk distress level of 35% (not including the 4% guaranteed coupon). Why?
NQ Mobile promised $600million in cash for the FL Mobile sale, $80 million in cash for the Nationsky sale, $40 million in cash for the Tianyu sale. With these enormous monetization events, plus $235 million in the bank - NQ Mobile promied to have almost $1 billion in cash for shareholders to pay 5x current debt.
Two key questions on investor's minds should be:
a) Why is the market discounting these monetization events to zero?
With all the lies from the past, mgt has zero credibility on such deals. Furthermore, shrewed investors know they have little recourse on recovering tangible assets such as cash from a Cayman Isle registered company with a Chinese VIE structure. The reality of owning shares of NQ through a shell co, with no US shareholder rights on tangible equity in the actual Chinese company is disconcerting with a company like NQ Mobile.
b) The million dollar question though, is why are inestors discounting debt paying 4% interest at 65 cents on the dollar?
After all, if the smartest money (bondholders) on Wall Street felt they had a great chance of getting paid par value (issue price) of the bonds by October 2016's put option (forced redemption) - this debt would be trading at $95 or greater, not at the prevailing $65 price. Based on the risk/reward ($65:$100), bond investors are seemingly betting close to 50/50 that NQ will try to circumvent their obligation. At least betting red/black on the roulette wheel at the Bellagio may get you a free night stay. What does NQ promise should you lose this bet?
With all things NQ, "reading between the lines" is a prerequisite for investors.
Biotechwatcher, good 'ol days when you and wallstpirate were tag team pumpers (good cop-bad cop style) trying to convince everyone to buy until you finally threw in the towel. All your great research metrics, data, and calculations that flopped - and now you try to conjure up new calculations??
Doesn't returning to YMB only remind you of the misery when shares fell from $25 to $15 - or were you actually dum enought to buy again. Ahh, those dreams of penny stock returns are addictive indeed.
LOL. What actually happened to Evan Almighty, the board pump-jester preeminent Martindale liwyer from Texas?
Plan A: I heard they announced the Tianya sale last week in the hopes of buffering next weeks's ER and FL/NS update.
Plan B: Nothing
Are you that dum, happymeal? You're exposing an SEC violation, collusion between sell-side analyst and company (banned since the days of Mary Meeker and Henry Blodget). Furthermore, what your expose tells us is that investors CANNOT and SHOULD NOT believe an analyst who appears to have conjured up a collusive fairytale valuation to pump up shares - which mind you, did not work.
Go to Tack Fiori website and download HKSE financial filings for balance sheet. It's actually closer to 97 million Hong Kong Dollars. One Hong Kong Dollar equals 13 United States Pennies.
are EROS bonds priced for default @ 60% disc w/ 33% yield(200% YTM)? Lat trade 40.62 issued at 100 par, paying 6.5% annual interest, 2021 maturity.
When a company issues shares without prejudice and dilutes hard working US shareholders from 38mil to 95mil over 4 years to line the pockets of friends and insiders, why would they care about share price when it's found money?
T&J is a perpetual pipedreamer. Doesn't he already know US investors won't own shares in any China RTO, nor will US investors have little recourse in suing NQ, a Cayman Isle VIE co. Smart investors don't need to wonder who gets rich over these asset shifting deals, of which cash holdings in China will never be upheld by any Chinese court should US investors sue NQ over bad deals. Take heed when mgt silence is deafening to US investors whilst NQ celebrates in bombastic fashion over a 10 year anniversary. The real question for diehards: With NQ stock near all-time lows, what exactly is NQ celebrating?