Anyone figure out why DXM went up today. The move seems unjustified. The only thing I could find was the seeking alpha article pumping the stock up. Since it went up on no new real news then perhaps now is a good time to short?
Yahoo says it was supposed to report today. But, they obviously did not.
On the EGLE company web-site it says nothing about when their next earnings release will be.
Does anyone know when EGLE will have release it next quarterly earnings report?
Please be advised that due to current market conditions, the margin requirement for NQ Mobile Inc - ADR stock (symbol: NQ; NYSE) has been increased to 100% effective immediately. If this action results in a margin deficiency in your account, you have until 14:30 EST to bring the account back into compliance, otherwise the account will be subject to automatic liquidation, per IB policy. NOTE - As NQ shares are currently halted as of this notice, if NQ is the only position in your account, and the account is margin deficient, the account will become subject to liquidation once trading in NQ shares is resumed (if after 14:30 EST).
Your cooperation is appreciated.
IB Risk Management
Interactive Brokers Customer Service
Smart longs cut their losses and sold at $12+ shortly after NQ re-opened. Everyone else who is still holding are playing with fire. Good Luck!
Yes thankfully I am short. Sorry longs. I hope you can at least get some of your money back. I don't need the stock to go to zero to profit.
Contrary To NQ Mobile’s Claim, Treating Cash As Level 2 Asset Is Not Common Chinese Practice
By Shuli Ren
NQ Mobile (NQ) hosted a two-hour-long conference call in response to Muddy Waters‘s short-sell report this morning.
To give the company credit, the management opened the floor to all investors.
The opening remark was “cash is the king” and the Q&A session was peppered with investor questions on why the company classified its entire cash pile to Level 2 instead of Level 1.
Management was largely dismissive of the distinction, saying it was “common in the industry”, identifying other Chinese Internet companies such as PerfectWorld (PWRU), Qihoo (QIHU), and Sina (SINA) as practitioners.
So with the help of Accounting Professor Allen Huang at Hong Kong University of Science And Technology, we did some data digging.
It turns out: Yes, some names do classify some of their cash – called “cash equivalent” to be specific – as Level 2 assets, but they also hold a lot more cash as Level 1 assets that can be deployed for working capital at any time.
Professor Huang breaks down the numbers for us:
For PWRU, as of the end of 2012, they have RMB 799,632,647 of cash and cash equivalents, and only categorized RMB 312,772,838 of them as Level 2 assets. [Barron's: so more than half of its cash is in Level 1.]
For QIHU, as of the end of 2012, they have $ 380,664 thousand of cash and cash equivalents and none of it is categorized as Level 2 assets. [Barron's: so NQ Mobile did not do their homework properly.]
SINA’s data is not very clean, not sure how much of their cash and cash equivalents are in level 1 or 2. Some are in level 1 and some are in level 2. [Barron's: Alibaba recently bought a large chunk of Sina's Weibo. We are not worried about Sina's balance sheet.]
Anyone who went through the 2008 Great Financial Crisis recalls the debates that centered around fair value accounting – or how you value (and write down) banks’ financial assets. Treating 100% of its cash as Level 2 is heavy-handed.
I also made a few phone calls to analysts in China, who unanimously said this treatment was NOT common among Chinese companies. I am happy to hear NQ Mobile out and prove me otherwise.
The difference between NQ and HLF was that HLF was never halted for an extended period like NQ was. HLF is a US company NQ is a Chinese based company. Big differences. Things appear much more dire for NQ right now than things ever did for HLF.
Unfortunately yes where there is smoke there is usually fire with Chinese stocks. Hopefully for longs NQ will re-open for trading today. Otherwise there are huge problems.
Agree if it re-opens today, it will open at around $6 a share. This is where it was trading in January and still above its 52 week low of around $5 a share. But, the longer it stays halted the lower the price it will re-open at. It must re-open today if you want to get above $6 a share.
I had thought NQ would end its halt and start trading again this morning. The fact it has not re-opened yet makes me think it will stay halted for many weeks. My guess is it will be halted for 1 or 2 months and will re-open for trading after it is de-listed and is on the pink sheets. I have seen this happen before with other chinese stocks with potential fraud.
But that is just my guess based on past experience. What does everyone else think?
Totally agree. If NQ had re-opened for trading this morning they you would have seen a bounce back up to close to $20 a share. But, the extended halt is going to freak all longs out, especially institutional holders. Not being able to have access to your money is frightening. Illiquid stock positions are worthless. You have to be able to trade your stock for it to have any value. An extended halt drives NQ stock value down dramatically.
Agree if it re-opens today there may be a relief bounce as everyone will be happy that it is trading again today. But, if doesn't re-open today it is horrible news. I have seen this way too many times with Chinese stocks. They either re-open for trading right away, bounce back up and no issues or..... they stay halted for many weeks and are eventually de-listed and sell for pennies on the dollar on the pink sheets.
great post. Totally agree the longer NQ stays halted the more worst the situation is. This NQ situation right now looks exactly like the RINO and CCME situations were. Scary!
Institutional Investors hate stock halts. They don't like alleged fraud. New Institutional investors won't touch this stock with a ten foot poll and the ones stuck in now will get out as fast as they can (they were trying to get out yesterday but the stock halted and they are stuck for now holding the bag.)
I hope that NQ does eventually re-open and that you are able to sell your shares without having to go the pink sheets.. Smart move to sell and cut your losses. Sorry you weren't able to sell yesterday.
Where there is smoke there is typically fire. Why aren't other stocks halted today? Just NQ is halted? You can try and spin this as a positive if you want. I have some NQ shares to sell you if they ever open for trading.
More bad news for NQ
NQ MOBILE INC. SHAREHOLDER ALERT: The Law Firm of Levi & Korsinsky, LLP Launches an Investigation into Claims on Behalf of Shareholders of NQ Mobile Inc.
Levi & Korsinsky is investigating the Board of Directors of NQ Mobile Inc. (“NQ” or the “Company”) (NQ) for possible breaches of fiduciary duty.