Per Seeking Alpha "Market Currents"

[webattorney]

As I mentioned last week we need PWC to sign off on Everything. Then we need the new law firm and auditor to sign off. I wish we could report earnings early and initiate the buyback immediately but I think we are going to have to wait for next week

Bring it on.  I just bought 1,000 shares on top of existing 1,000 shares.  I want to see what they say during ER.

[kshen]

I am wondering at this point if the company is considering going private... Just buy out all the shares and screw all the annoying chatter.

[Mountainbiker]

I wonder if Toro will be doing their piece with their groundwork. They are in China this week doing their DD.

It seems that Toro has deep knowledge of NQ. What do others think??

[kshen]

They stated they are in China doing research this week. Hopefully we'll see something by thursday

[TxPm]

Kshen,

I was wondering the same thing. They could easily go private and avoid all this hassle until they get more established

[kshen]

Especially with this Zhou Xu Character who 'seems' to have plenty of money.

Also with Atlantis covering NQ, they certainly have the capital to make it private at a premium of 20+$

[Mountainbiker]

I checked the news from Piper again, it says the news is from analyst, Mark Murphy, I thought the analyst covering NQ was a Chinse person? I forget his name.

I

[webattorney]

Toro responds in the Comments section. He's in China doing DD:

http://seekingalpha.com/article/1805232-...urce=yahoo

[webattorney]

Toro writes in his comments:

As noted in our reports, we are in Beiing for 2-3 weeks for some on-the-ground DD in China to visit NQ, it subsidiaries, YDT, and major partners. This DD effort will take us to Beijing, Shanghai, Shenzhen, and Guangzhou to visit all the major ecosystem partners and then to various Tier 2+ cities to verify distribution and users.

Day 1 of our DD contradicts the contents of the article above.

Summary of Day 1 of DD in Beijing:

1. Verification of cash at SC. It's there.

2. Verification of YDT office. YDT is still where we last visited, same building, same section of their floor. We have pictures that we will upload in our next report. Our interviews confirmed the analysis and observations we shared in our Part 2 report.

3. Verification of channel partner contracts. We reviewed the original physical paper contracts (each signed and sealed by NQ and the partner in question) for all major deals executed in 2012 and 2013. This included, among various others:

-- Carrier China Mobile, with whom NQ has three separate contracts (e.g. security scanning software to protect China Mobile's own app store, deal with Music Radar, and a regional deal with the Guangdong province branch for comprehensive security products).
-- Top 5 Chinese OEMs: Lenovo, ZTE, Huawei, Coolpad, and Gionee
-- Music portals: TTPod, Kugou (top 3 Chinese music sites) and Yinlong

4. Retailer field trip. We traveled to the electronics retail section of the area in Beijing known as the "Silicon Valley" of China to visit several physical retail points of sale for handsets. In a large, electronics department store of sorts, we visited five separate retailers of NQ prepaid cards. We then walked over to DXT (a Best Buy-like physical electronics retailer with 3,000 stores across China) and verified that they sold NQ in their smartphone bundle product, which bundles prepaid subscriptions for a leading mobile game, a mobile lottery product, and NQ's security product. We found what MW claims they could not find, six locations that sold NQ prepaid cards in one major department store alone. Keep in mind Beijing is one of the worst cities for NQ distribution, since they are much more concentrated in lower-tier cities. DXT carries NQ via a bundled product that is sold with smartphones at the point of sale.

Will post further updates as they happen if we do not have a chance to document our findings in a follow-up report.