Yes, Ginky, I ignored this broken record for a reason - and where have you been, as it's been argued over ad nauseam.
NQ's share repurchase plan has been in place since November 2012 (TWO YEARS). Yet, with all the mudslinging from short sellers and share decimation through today, NQ has managed to buyback a pittance 393K shares since the MW debacle.. So what makes you think they would go bonkers on the next round of a buyback (which wouldn't put a ding in the recent 40% dilution)?
To boot, the $25 mil company buyback plan was reiterated at the emergency MW meeting in November PRIOR to mgt announcing their intention to buy $3mil of stock with personal capital. Comically, Henry states (below) that the drop in NQ shares is artificially low.
October 25, 2013 8:33 AM NQ theflyonthewall: The company said "as confirmation of the strong foundations of our business" it released a table to show its major term deposits in cash as of today. Also, the company said it will utilize its existing $35M stock buyback after the blackout period following its Q3/2013 earnings release.
On November 6, 2013, NQ purportedly completed the transfer of all level 2 assets ($103 million) into Hong Kong's Standard Chartered Bank.
On November 12, 2013 NQ Mobile reported Q3 earnings.
So where was that huge buy-back??
BEIJING and DALLAS, Nov. 12, 2013 /PRNewswire/ -- NQ Mobile Inc. (NYSE: NQ), a leading global provider of mobile Internet services, today announced that its senior management, including Co-CEOs Dr. Henry Lin and Omar Khan, COO Vincent Shi, President Zemin Xu, CFO KB Teo, and CCO Gavin Kim, among others, intend to use their personal funds to purchase up to an aggregate of $3 million worth of the Company's American depositary shares ("ADSs") within six months from November 15, 2013,
"We consider the recent drop in NQ Mobile's share price to be artificially created by false allegations and we believe our stock to be currently undervalued.
Henry's talking out of his assy?
NQ announcement this morning: "We also wish to point out that the notice of the Annual General Meeting was delivered on Friday as is required to announce the details 30 days prior to the actual meeting which has been set for December 19, 2014. This is a standard and procedural meeting. The only resolution proposed is related to the Company’s authorized share capital and the increase is the first extension following the initial authorization which occurred prior to the Company’s initial public offering. This does not reflect any plans to issue more shares. There are currently no plans to issue any additional shares beyond those related to our investments and acquisitions disclosed in our recent annual filing for 2013, found on Form 20F with the SEC dated on October 27, 2014"
So it took 6 months for NQ mgt to disclose a 40% increase in outstanding share count for acquisition deals, thereby purging virtually all authorized shares - but now we're supposed to believe that these authorized shares will not be used for future acquisitions??
Food for thought: NQ Mobile made almost one acquisition every two months over the past two years, massively diluting outstanding shares by 40%.
Hmm, perhaps NQ is planning a XMas gift for all: a 3:1 stock split.
Happy Turkey Day!
Perhaps if the average shareholder on YMB spent more time researching the alleged fraudulent company and less time obsessing over other posters, they would be able to afford Xmas gifts for their children this year.
When monetization deteriorates user experience, users flee and stock plunges - that's what happened last Q to Sungy. I expect the same to happen on Monday, or worse - an acceleration of the same.
NQ Live is GOMO's launcher in many ways. It was touted by NQ mgt as the "holy grail" to 2-5-10. Really?
What happened to NQ (Sprint) LIve? One measly slide (of 50, or 2% dedicated to NQ Live) at the Morgan Stanley Singapore conference couple weeks ago, compared with 48 slides (of 157, or 30% dedicated to NQ Live) from Investor Day in December 2013.
To boot, Gavin told us we would see NQ Live roll out on every Android phone sold by Sprint. in 2014. Remember that huge headline pump PR? Well ,as of today, no Sprint Live flashed on dev team members, with 4-6 week release window. Lollipop too good for NQ Live? I think Gavin will ear crow in January.
The supposed holy grail to the 2-5-10 not looking so holy after all. Is Music Live (on one HTC phone) and Fit Live (on one Samsung phone) a flop? These tiny two niche launches were test runs, ilm, and I believe user experience is a dud and the product is being regarded by many as simply the next gen of mobile spam - shortening battery charge, processor, and memory exponentially worse than Sprint ID (the failure predecessor to Sprint Live) .
Smart guy that runs Valiant, and I'm not being sarcastic, really. But, Valiant also shorted QIHU below $20 and it went over $100. Then,they went long Qihu and it dropped to $70. Go figure. Maybe Valiant gets lucky this time with NQ. A quick google and I also found a fairly recent article on Valiant's underperformance relative the averages:
Chris Hansen’s hedge fund posts second consecutive quarterly loss
Chris Hansen’s Valiant Capital Management posted an 8.7 percent net loss for the first quarter across its holdings, the finance blog Institutional Investor’s Alpha reported Monday.
Originally published April 29, 2013 at 4:15 PM |
While Valiant’s U.S. holdings overall were up, it lost big on substantial investments bets in India, and on others in the Middle East, Africa and China.
Among its less easily traded investments, presumably in privately held companies, a notable loss came from a microfinance company called Spandana Sphoorty Financial.
“An initial investment of more than $14.8 million is now worth just $9,710,” the blog reported.
A hedge fund such as Valiant can make a variety of investments. Hansen has said his fund can “short” stocks, expecting to profit when securities decline in value.
That strategy can cause short-term losses in a surging market, and it means the performance of the Valiant portfolio can’t be directly compared to all-long indexes such as the S&P or the global MSCI World Index.
Citing the internal documents, the Alpha blog reported Valiant now manages $2.44 billion, down more than 12 percent from $2.8 billion at year-end.
As for Oberweiss, in the recent Bloomberg article, Jim praises NQ and states on record that MW was MOSTLY wrong about NQ - which implies MW was right about something, right? He also states that his fund made a decent return on NQ - likely only because he doubled down last spring.
Bottom line: Smart money already took the money and ran - or should I say, passed the baton to current bagholders.
What's in your pipe, dreamer? Open interest on the $7 puts expiring this Friday is only 4607 contracts.
NQ has never broken out the cost for these preload deals for obvious reasons. Whether NQ branded or now white label, we do know one thing:.
Page F22 of the latest 20-F: "Cost of revenues primarily consists of customer acquisition cost paid to third party business partners based on number of end users referred by them, which are expensed when earned by third party business partners, fees paid to the handset makers and promotion agents for them to preload the Group’s software".
So say a user gets a phone preloaded with NQ Mobile Security but chooses to install Norton, Qihoo, Avast, or any number of great anti-malware products available which unlike NQ Mobile Security - do not require a premium sub to get the all-important malware updates vs NQ's mandatory $29.99 annual sub required to get updates. In such cases (which I believe to be the majority), NQ already paid the carrier or handset co for the preload and gets zero ROI when users freeze or uninstall NQ in favor of the genuinely free products.
So then, how does a company make money if the cost of revenue is = or revenue?
Why did Oberweis, Altimeter, Morgan Stanley, SAC, and many others dump their shares. And why did Piper Jaf, Wedge, Canaccord drop coverage?? Why no institutional support, you wonder??
OuchOuch tradestar, if I don't know much about accounting, you know nothing about Chinese accounting. Did you read the new 20F? Why is lev 2 cash back in play, Sherlock? And again, let's remind everyone that NQ went from $11s to the $3s after you posted your SA nonsense, and still languishing 40% below your bullpump. Don't you love efficient markets??
Tradestar says, "Noone has been able to prove round tripping, yet multiple accountants have been able to say the cash is there and the revenues are there."
And how have you proven round-tripping never happened? Did you put all faith and trust into MBP? Name the multiple acctants that examined YDT's (and to a lesser extend AsiaLink- as Ms Han, exCFO) books? When were their offices visited? If you can't assert, you can't acquit.. Again, if you (Tradestar) were proven right, NQ should be a $20 stock today.
Your right about one thing, NQ is far from done-done.
Surprised applle?? They missed Nov 12-14 AVAR2014 too - opting to present a stock promotion piece at the Nov 12-14 Morgan Stanley Investor Summit rather than attend AVAR to present a white paper or abstract on their core comp.
TradeStar (definitely not StarTrader): Your rebuttal to Bob was nothing more than bipolar speculation (IE your opinion vs Bob's). I think he was right and you were wrong, and that's my opinion - which regretfully neither of us can prove otherwise. Likewise, you're dead wrong to proclaim victory, since a PRC state sponsored or SEC investigation was never conducted - nor were other alleged complicits ever investigated in greater detail. MBP signed off on the 20F as an "audit opinion" (get it, MBP's OPINION), only after PwC was fired (likely a kind resignation) and refused to sign the 20F. MBP did the same for Ambow (an SU fav), Yuhe, AutoChina, and Shegda. Where are those stocks now?? In NQ's case, plenty of missing data also makes MBP a sloppy audit, to say the least (again, in my opinion, since no one has ALL THE FACTS). Right or wrong, in the end, Bob stuck to his guns and has been handsomely rewarded to the tune of 70%+ through today. You and your disciples, on the other hand, are down 40% in that same period after you wrote the rebuttal (while shares traded in the mid $11's). I counted over 50 individual investor high-hoe praises in your article alone, not to mention the many more that read your pump piece. Don't ya think some of your disciples hung in there (or bought NQ stock) on your almighty words of "wisdom" - which whether you admit it or not as a shareholder yourself, was an underlying reason to write the rebuttal. In the end, by the looks of current PPS, the market chose to believe Bob over you. End of story.
Qihoo 360 (data compiled from most recent 20F and quarterly report):
2011: $168 mil revenue / 173 mil class A (114 mil ADS)
2012: $329 mil revenue / 184 mil class A (121 mil ADS)
2013: $671 mil revenue / 193 mil class A (127 mil ADS)
2014: $1.35 bil revenue guidance / 191 mil class A (126 mil ADS)
So growth from 2011-2014 increased 96%, 103%, and 101% respectively YOY, for an annualized growth rate of 100% (at par with NQ), on the heels of share count that actually shrunk to 126 mil ADS helped by the recent share buy-back, diluting investors only 10% over 3 years. The dilution effect: Qihoo can actually "afford" to earn .7% less in 2014 vs 2013 to be on par with relative P/E ratio comps, having no negative effect on PPS. The same applies to revenue. Look at revenue growth per ADS from 2013 ($5.28) to 2014 (10.71), 103% revenue growth per share vs -.7% share dilution, impressive by any measure and investor anti-dilutive friendly.
Analyzing revenue growth as a function of share dilution is simply another metric to consider when studying company management efficiency. Among other things, it can provide additional color on how a business achieved it's revenue growth target, whether organic or acquisitive. In NQ's case it seems clear that achieving 100% revenue growth was a function of issuing shares to acquire companies, 10+ in the past two years alone - many of them which may be perceived as non-core assets with questionable business models. Qihoo's revenue growth vs share dilution is clearly the winner. Furthermore, post-IPO, Qihoo had a more difficult comp of the two companies (2011 post-IPO baseline revenue of $168 mil vs. NQ's 2011 baseline revenue of only $40.7 mil). Finally, Qihoo managed mostly organic growth - a byproduct of Qihoo's viral product suites vs NQ's numerous acquisitions outside the scope of it's core competency. So besides enhancing share count, what has NQ done to enhance it's brand equity?
Rewritten from original post for clarification: I use this analysis to better understand how some companies succeed from within via transparent and easy to understand businesses while others may dilute to grow from the outside via opaque and difficult to understand businesses. I also used Qihoo as a comparison to NQ Mobile, as both share similar operating business models and both completed their initial public offering March-May 2011.
NQ Mobile (data compiled from the most recent 20F and quarterly report):
2011: $ 41 mil revenue / 194 mil class A (38.8 mil ADS)
2012: $ 92 mil revenue / 256 mil class A (51.2 mil ADS)
2013: $197mil revenue / 274 mil class A (54.8 mil ADS)
2014: $333mil revenue guidance / 440 mil class A (88 mil ADS)
So if you believe the revenue numbers audited by the China microcap 20-F expert, growth from 2011-2014 increased 125%, 114%, and 70% respectively YOY, for an average annual growth rate of 103%. Impressed? Not so fast. NQ also managed to dilute investors by 220% over 3 years, while marginally growing revenue per share. The dilution effect: NQ would have to earn 1.6x more in 2014 vs 2013 just to be on par with P/E ratio comps, another reason why PPS is likely being suppressed. The same applies to revenue. Incremental revenue growth per ADS from 2013 ($3.59) to 2014 ($3.78) was just 5% revenue growth per share vs 61% share dilution, which doesn't appear very efficient.
Really, dream on? Unlike you or your IdolStar, how can I be angry since $23 PPS? Perhaps a little gloating at pointing out the facts, but definitely not angry. And busted? For what, psycho?
Wrong again. The only obviouslness is nq_longs_crush_shorts = just another frustrated pipedreamer paranoid psycho
Bravo Tradestar! Given up on pumping NQ yet? No remorse for trying to be clever on SA while sucking in new lemmings in the process? Tradestar: You are the poster-child NQ perma-bull. Had anyone listened to your lame pump rebuttal SA piece to Bob on December 17 and bought shares, they'd be down almost 40%. That was in fact THE DUMBEST (AND MOST EXPENSIVE) piece any longs had to endure.
LOL, NQfats! Are you referring to your broken idol from Shareholder's Unite? You do mean Tradestar, the poster-child perma-bull (together with WallStPirate) who's been pumping NQ through SU and SA ad nauseam. Had you listened to Tradestar's lame pump rebuttal SA piece to Bob on December 17 and bought shares, you'd be down almost 40%.
ucamjf, you are psychotic. I've been here by myself posting as myself since October 2013. None of the id's you mention, nor the id's using iterations of my id "applengineer", HAVE ANYTHING TO DO WITH ME OR MY VIEWS.