Post Earnings

[BillNeuburger]

There should be a concerted effort by every single shareholders to force the company in the right direction of selling assets piece by piece. This company is unworthy of remaining public as they have been negligent and asinine in dealing with the situation and the parties who are corrupting the stock. They have not acknowleged the level of hatred for the stock, nor have they acknowledged the parties in Hong Kong and likely in the U.S. that are killing the stock tick by tick. They have not appealed to any investor base to put money to work and they tell us that this is about tax loss selling. BULL Sh*t. This is an NQ problem and always has been since the time last year when they had a chance to sell the company and didn't.

They filed the 20-F and fell flat on their faces and their timeline still called for 2 months before reporting financials. Brilliant management in and board!

This company needs to break-up, piece by piece and prove valuation for various assets, and return value to shareholders, NO EXCEPTIONS!

Tell me, how is it possible that a $2B worth company is trading for $400M or even less than $400M, and no one is stepping in as an arbitrage play at the very least to acquire a huge stake and either take it out, or make good on the investment.

This company deals with situations in the worst possible ways and never gets out of their own way, I've never seen such idiocy in my entire life, and what do we have to do? Be patient and they will come back through performance. Horse crap, they need to engineer this back, and the market is not going to give them the courtesy of anything else. It amazes me the blind longs who just want to support this stupid nature by the coompany. I'm very long and stupid to have held this, but I understand the market and it's fully clear that NQ has to do more, and not just waste another 14 months of stupid talk and stupid group lunch pictures, and stupid proclimations of greatness, meanwhile the stock is in the toilet.

This is not normal, and we owe that to management it's time they get off their A$$e$, and we get off our A$$e$ and demand change immediately following this earnings report.

[ArtM72]

" I've never seen such idiocy in my entire life"

I have. Or at least have seen fledgling companies, one after another, get hammered by The New Wall Street. If I have any personal concern it is that too many people throw in the towel too soon and the company gets taken over for a song from private venture capitalists who subsequently make a killing. If I have a general concern it is that the market is no longer a place to raise capital to support great ideas or great products.

Yeah, there are a few companies that have made it BIG, but when you look at their share price histories long term shareholders have needed to carry balls the size of watermelons to enjoy the big profits in the end.

[BillNeuburger]

That is EXACTLY the problem, and part of the reason I have wanted them to do various things over the last year. Because at the end of the day, the stock doesn't move, it will go private for "Nothing" and long-term shareholders get totally screwed, while some short term traders make a killing relative to where they bought, management likely participates in a buyout, still makes a killing and so doesn't the acquiring party-Private Equity.

As of today, possibly fictitious, there is talk about NQ being on the block to be sold. I can't confirm this, but that's what people are saying, right? Well let's put that in perspective, the stock is at less than $5.00 per share, and what does anyone expect this can go for in an 'auction' with that starting point? Buyouts do NOT go for 400% over the stock price it just doesn't happen regardless of the fundamentals so the company if they have gotten to the point of throwing in the towel before one of their biggest events, basically is saying here, make a higher than current stock price bid and we'll likely take it, without regard to real value.

Therefore, this company, potentially screwed around for 14 months, all to sell at a steal, or all to go private at a steal because THEY made mistake after mistake and shot themselves in the foot. (possibly on purpose) We don't know.

There's no indication on my part that they WANT to do this, but considering they've alienated every goddamn investor over the last 14 months, it is possible, and basically I lose in this situation.

We'll see what they say tomorrow, that being said, they "valued" FL Mobile at 418.5 Million, a few weeks ago, if they "Sold" the company for $900 M or a little over $10, there would be plenty of morons who want to take that, but it doesn't seem to stand to reason after valuing FL the way they did, so it might not happen that way.. But clearly the risk is there that this goes private at B.S. or taken out at B.S. value. Hence the need to push and push and push in the right direction.

[blackdog08]

It amazes me the blind longs who just want to support this stupid nature by the coompany.

  I am supporting the management because they have been growing the business while sorting out the mess someone else shoveled to them. And, I'm not blind to know that the management owns enough Class B shares that give them 56% voting power (even after the dilution).   So, who do you think will decide the outcome of what you are proposing?

Think LOGICALLY....do they enjoy screwing themselves (RPL + Omar) by losing $12MM for every $1 drop in PPS?  You and all other longs (me topo) are one click away from no longer being long. As long as NQ management would continue to be large shareholders for a while and fraud is 99.8% out of question, I don't see the need to try to blame them for the decline of the PPS which neither not due to company's deteriorated fundamentals nor in their control.  Why bother to run and grow Mobile business if they know exactly how to move stock prices?  I'm in a (big) hole as well and will admit my confidence in them would fade if they don’t (or have a darn good reason not to) commit to an oversized increase of buyback using the bond proceeds given that they were supposed to be used for those big acquisitions in May but couldn’t be because of the delayed 20-F.  Until then, just try to stay sane and make sure to have Pepcids handy when checking NQ PPS.

[ArtM72]

That is EXACTLY the problem, and part of the reason I have wanted them to do various things over the last year. Because at the end of the day, the stock doesn't move, it will go private for "Nothing" and long-term shareholders get totally screwed, while some short term traders make a killing relative to where they bought, management likely participates in a buyout, still makes a killing and so doesn't the acquiring party-Private Equity. As of today, possibly fictitious, there is talk about NQ being on the block to be sold. I can't confirm this, but that's what people are saying, right? Well let's put that in perspective, the stock is at less than $5.00 per share, and what does anyone expect this can go for in an 'auction' with that starting point? Buyouts do NOT go for 400% over the stock price it just doesn't happen regardless of the fundamentals so the company if they have gotten to the point of throwing in the towel before one of their biggest events, basically is saying here, make a higher than current stock price bid and we'll likely take it, without regard to real value. Therefore, this company, potentially screwed around for 14 months, all to sell at a steal, or all to go private at a steal because THEY made mistake after mistake and shot themselves in the foot. (possibly on purpose) We don't know. There's no indication on my part that they WANT to do this, but considering they've alienated every goddamn investor over the last 14 months, it is possible, and basically I lose in this situation. We'll see what they say tomorrow, that being said, they "valued" FL Mobile at 418.5 Million, a few weeks ago, if they "Sold" the company for $900 M or a little over $10, there would be plenty of morons who want to take that, but it doesn't seem to stand to reason after valuing FL the way they did, so it might not happen that way.. But clearly the risk is there that this goes private at B.S. or taken out at B.S. value. Hence the need to push and push and push in the right direction.

Wow.  Amazing post.  If I were an English or History teacher and wanted a historic metaphor for Interoil I could not imagine a better one.  Do you think someone has a non-virtual trading algorithm for stockds like these?

[BillNeuburger]

I'm not familiar with Inter oil and to be honest I've never dealt with an NQ it's in a world of its
own.. Sadly I saved my worst investment (so far) for something like this. topeka's target price was $33, about 2.2billion. Obviously new shares outstanding and a 2.2 billion valuation goes to like $24 and change. Company says they are in a better position now than ever before so what's that mean? There's over $20 of value here... What will the market do?
I actually think the shorts and Carson block would like this sold for low valuation because if it doesn't and it sells for normal valuation later, or regains value they definitively have conducted a smear campaign and I'd think that hurts credibility going forward. I really don't think the company wants to cash out for pennies.. Just is my fear.

[pwalk]

I am just relieved that after today NQ will be compliant, and all financial reporting will be current. Additionally, we will finally see if mgmt is committed to NQ's shareholders by making meaningful stock purchases (putting their money where their mouth is) or do we hear and see more blah blah.......

[kevinh]

NQ's earnings announcement today sparked my interest so I'm back.

To Bill's point about a reasonable buyout price, we need to realize that NQ's shares outstanding has increased significantly, and most likely, it will dilute further. A buyout price of $10 puts NQ at close to a $1B valuation, which doesn't seem to be that low given the question marks surrounding the company. I know this kills your investment in NQ, along with the investment of many others here, but most of the longs with a higher average (like any of the large institutions besides China Rock) have probably sold a while ago. Most of the current shareholders would be very happy with $10.

[BillNeuburger]

NQ's earnings announcement today sparked my interest so I'm back. To Bill's point about a reasonable buyout price, we need to realize that NQ's shares outstanding has increased significantly, and most likely, it will dilute further. A buyout price of $10 puts NQ at close to a $1B valuation, which doesn't seem to be that low given the question marks surrounding the company. I know this kills your investment in NQ, along with the investment of many others here, but most of the longs with a higher average (like any of the large institutions besides China Rock) have probably sold a while ago. Most of the current shareholders would be very happy with $10.

A presumably high growth company, worth less than 1 Billion? @ 10 it's about 889M. Just for the sake of argument, the company enacts a buyback plan of say $100M and buys back $50M rather quickly it would put a fairly decent sized dent in the dilution if the stock does nothing or moves lower, they paid for acquisitions with stock at +$10. The company says they are better now than they were with their business and again for the sake of argument Topeka had a $33 price target with obviously less shares outstanding which to my calculation brought the value to a bit over $2Billion, unless I'm using a different starting point of shares outstanding than topeka but topeka's was pre-dilution. Therefore just say what they bought sucks, the valuation of the company then comes down to less than $1B?

Of course all the people buying at $4 would love to sell at 10, and they could have 7 wks ago, but if the company takes further action like a BIG buyback, adds someone likend CRCM to the board, and takes those shares out of the float, management buyback, the end result should be a lot better than $10, because all the while institutions may take notice. It's all about confidence and getting institutions back.. and it starts with doing the right things financially.