11-07-2013, 04:00 PM
'kshen' pid='31088' dateline='<a href="tel:1383802 Wrote:the biggest portion of their article tries to say that YDT reports gross revenue but it doesn't make sense. I wrote something regarding their faulty argument http://seekingalpha.com/instablog/155353...-arguments
Nice article...nicely done. I completely agree with you concerning the double taxation...why would a service provider be in a business where 50% of their margins is going to taxes.
I posted this in a different thread but maybe you could adress this...
is there a way to specifically prove that all the payments that were/are collected through YDT were/are passed on to NQ net what YDT takes out? Yes NQ has 103mm in a bank account plus working capital, but is there a way to prove that YDT is actually collecting cash and sending it through to NQ. We all know the DSO issue and the reasons for the high DSOs. I have no idea if MW is lying (could very well be the case) but they mentioned that they activated 22 accounts and not one was processed through YDT. MW mentioned UMPay as a SP (Toro has confirmed the relationship with NQ and UMPay) but after 22 activations odds are that if NQ does use YDT as a SP then something would be processed. I am not a SP expert so maybe I have learning to do (Does it matter where the initiation is taking place? Is it a random allocation?).
My point is that without a response from PWC I don't think anyone can answer the question if all the revenue that is flowing through YDT is 100% real. I think an overstatement of revenue can be a very real possibility as we learn more and more about YDT. It seems at least plausible that YDT could have been used to prop up NQ revenues. There are definitely motives for NQ to inflate its top line revenue (stock compensation etc).
Again I am not saying this is the case, but can anyone PROVE that I am wrong to think this way? Ultimately, the audit will show the truth and yes I know NQ has been audited before (pre IPO and various other times) but YDT/NQ revenue/DSO is something I can't get comfortable with yet.