another seeking alpha article- bearish

[thecrazykevy]

This link is just a piece written restating what was written on Goldbaum's article. It doesn't validate anything.

The Goldbaum article was actually quoting that Chinese article. So I was wondering if Goldbaum's English translation was correct and if that Chinese website had any credibility.

[kshen]

Ok, I did a bit of digging on Baidu

http://m-zte-n880s.liqucn.com/rj/9282.shtml&usg=ALkJrhgoM-Au9yhLSTpO0bPbtXXAcj9OXA

This is the NQ app available for this ZTE phone n880s


was told it is preloaded on model V961 but need validation
Validated here search for 网秦杀毒 which is NQ security

http://mobile.139shop.com/mobile/122/inf26674.htm
ZTE V961 entertainment

Video playback :
Support MPEG4/H.263/H.264/WMV other formats
Audio playback :
Supports MP3/AAC/AAC + / eAAC + / WAV / MIDI and other formats
Graphics formats:
Support JPEG and other formats
Built-in games :
Be
SNS support:
Support
Instant Messaging :
Mobile QQ
Application:
High moral map, QQ browser, palm reading, ING market, Taobao, Jingdong, Sina microblogging, ZTE exchange world, NetQin Antivirus
EBook:
Support
Streaming Media:
Support
Flash Player:
Support
Radio:
Support
Java extensions :
Support

Here is an english website online retailer. Its labeled as Qin network antivirus but its essentially NQ
http://www.welectronics.com/gsm/ZTE/ZTE-...Ogod420AHg

[vermut]

I found one inconsistancy in Goldbaum's article. I qoute the article:

In the beginning of the article there is a quote from an IT administrator which roughly translates to: "When I first heard that NQ Mobile Security had 60% market share in China, as an IT administrator I feel very ashamed since I can't believe I've never heard of this company before. And if 360, Tencent, and Kingsoft are licensing NQ's technology (for their mobile security apps), then they would have to pay NQ a fee."

So he tries this way to support the claim that nobody in China has ever heard of NQ Mobile as a smart phone security market player. While I found another article which shows that big Chinese internet companies are aware of NQ Mobile and were even considering to purchase it.  http://www.pcpop.com/doc/0/909/909728.shtml

I translated it with google. And if I understood it correctly Baidu and Tencent were considering a purchase of NQ Mobile but they could not agree on the price. So maybe some IT specialist had no idea what NQ mobile is Baidu and Tencent obviously saw value in the NQ's technology so that they even wanted to purchase it.

[Haggerston]

Well, it's certainly not for the faint of heart and I don't think there are many people who can give you iron clad guarantees (certainly not me), but perhaps OTM calls are a better idea to play any possible rebound. Cheaper still so even less money at stake, but if it rebounds, it's likely to rebound big

Technically there's much support around 8-9 but if it break these levels in the next few days then that pretty much tells us the market are giving up on NQ for the time being and it will be a long road to get back up. But if we bounce off of support (8-9) once margin selling finishes tomorrow / next day and start to climb back up and hopefully accelerate with some news from the co then it should tell us that this is nothing more than a common theft.

Block trades and money flow were still positive today - a good sign.

Block Trades	Bought/Sold Ratio	Net Cash Flow
97	1.28	$1.88M

I'm down very big on NQ as it was my 2nd largest holding and just found this forum as I was looking for some quality conversations.

[admin]

Well, welcome aboard Haggerston and thanks for the perspective. It all seems to hinge on two issues:
- Whether the cash is there (and if it is, that greatly reduces the chance of NQ having inflated revenues, as the books have to add up)
- Whether Yidatong is de-facto part of, or cooperating in some nefarious practices with NQ.

On the first note, the fact that they've been classified by Level 2 isn't in and by itself reason to assume the cash isn't there, but we have to await further confirmation.

On the second note, I'm encouraged what Macquarie said about that this morning, although it isn't an iron clad guarantee either.

[tradestar2012]

I personally dont think YTD is even a factor. The reality is, NQ gets great pricing from YTD as a SP. If anything, that signals to me that they at a minimum have an at-arms length deal.

[chenlica]

I found one inconsistancy in Goldbaum's article. I qoute the article:

In the beginning of the article there is a quote from an IT administrator which roughly translates to: "When I first heard that NQ Mobile Security had 60% market share in China, as an IT administrator I feel very ashamed since I can't believe I've never heard of this company before. And if 360, Tencent, and Kingsoft are licensing NQ's technology (for their mobile security apps), then they would have to pay NQ a fee."

So he tries this way to support the claim that nobody in China has ever heard of NQ Mobile as a smart phone security market player. While I found another article which shows that big Chinese internet companies are aware of NQ Mobile and were even considering to purchase it.  http://www.pcpop.com/doc/0/909/909728.shtml

I translated it with google. And if I understood it correctly Baidu and Tencent were considering a purchase of NQ Mobile but they could not agree on the price. So maybe some IT specialist had no idea what NQ mobile is Baidu and Tencent obviously saw value in the NQ's technology so that they even wanted to purchase it.

Yes your understanding is correct, though the article did not explicitly say baidu and tencent was intended to do that. It says "rumor has it that..."...but omar did say in the conference call that "several investors have been in contact with them in this regard"...

[SamAdams]

I agree, YTD has been vetted before and is really old news. Major institutional investors have no inncentive to step in now and buy as NQ is not in any relevant small cap benchmark index. I have heard some smaller insitutional oweners just threw in the towel. There is a herd mentality as even smart institutional investors can be scared. The cash is there and has been audited by PWC. It's a red herring. For an experienced China investor like CB to not be aware of the accounting changes and that other major Chinese companies are applying the same rules is incredulous. We know why he had not "seen" this before. Does IOC need to have their gas re-certified every time someone says they have no gas (oh, that's what they used to say). MW has made the victim (NQ) seem like the criminal when the crime has been committed by them. Stronger insitutional owndership could have cushioned this a bit but many retail investors were stampeded in the rush to get out. I welcome the independant review but hope they hold thier analyst day and earnings calls as scheduled. A brief statement from PWC would be nice as well but I feel confident in the results in any event.