SP is weakening again.

[mockbae63]

[quote='kevinh' pid='33825' dateline='1386701217'] Imo, only buyers of NQ are retail short sellers, covering slowly. And my belief is the proposed change in by-laws regarding founder shares is a big red flag to a lot of people.

Well, once this long liquidation is done, better days are ahead. Bottoming process is gut wrenching and we are seeing it right now.

[/quote

This is literally GUT WRENCHING!

[sfiaes]

So Toro interprets the amendment as giving the founders the ability to pledge their Class B shares for a loan to buy Class A shares, because they don't have enough liquidity to make good on their promise to purchase up to $3 million worth of stock.

[kevinh]

This is going to be my last post on this board. There is no real discourse on this board, with everyone here bullish and not a single person questioning anything that's been done by NQ and believe everything that's been said by Toro.

Buying shares with other peoples' money and using your shares (which people have accused as worthless) as collateral is far less meaningful than using your own money to buy shares, or borrowing money and using your house as collateral . How can anyone view this development as bullish? It makes the management buyback meaningless if the founders indeed borrowed money against their shares to fund the buyback.

And what's the point of the high finance comment? The suspicion is exactly that management is going to pledge shares to fund their buyback (the loan has a specified purpose), making the management buyback pretty meaningless. Additionally, I know of two Chinese companies this year, one investment firm in Beijing, another a conglomerate in southern China (naming the province would reveal who the conglomerate is), that got large loans from Chinese banks (1.2B RMB for the former, over 5B RMB for the latter) without having to pinpoint exactly what the money is used for. And in case anyone is wondering, I know Chinese banking and capital markets quite well, having worked on a series of reverse mergers (SPACs to be exact), have first hand experience with Chinese fraud, and have continued in capital market transactions with China since 2011.

[Mountainbiker]

This is going to be my last post on this board. There is no real discourse on this board, with everyone here bullish and not a single person questioning anything that's been done by NQ and believe everything that's been said by Toro. Buying shares with other peoples' money and using your shares (which people have accused as worthless) as collateral is far less meaningful than using your own money to buy shares, or borrowing money and using your house as collateral . How can anyone view this development as bullish? It makes the management buyback meaningless if the founders indeed borrowed money against their shares to fund the buyback. And what's the point of the high finance comment? The suspicion is exactly that management is going to pledge shares to fund their buyback (the loan has a specified purpose), making the management buyback pretty meaningless. Additionally, I know of two Chinese companies this year, one investment firm in Beijing, another a conglomerate in southern China (naming the province would reveal who the conglomerate is), that got large loans from Chinese banks (1.2B RMB for the former, over 5B RMB for the latter) without having to pinpoint exactly what the money is used for. And in case anyone is wondering, I know Chinese banking and capital markets quite well, having worked on a series of reverse mergers (SPACs to be exact), have first hand experience with Chinese fraud, and have continued in capital market transactions with China since 2011.

Thanks for for you contribution. Good luck.

[admin]

Meaningless, I don't know. The amount was never very big in the first place, and if they don't have the liquidity outright to buy these shares, this is what they had to do. We don't know any of this for sure, they've communicated intentions, at some stage we'll get an update on what actually happened, just as with the existing $35M company share buyback program, they won't communicate each and every transaction for obvious reasons.

[quantumvibes]

"There is no real discourse on this board, with everyone here bullish and not a single person questioning anything that's been done by NQ and believe everything that's been said by Toro." Kind of ironic that you sign off in a dismissive way and one that doesn't allow for discourse.... pot calling the kettle black? Seems to me that your real frustration perhaps lies with having made some investment decisions with NQ that haven't panned out as planned. GL

[Mountainbiker]

Meaningless, I don't know. The amount was never very big in the first place, and if they don't have the liquidity outright to buy these shares, this is what they had to do. We don't know any of this for sure, they've communicated intentions, at some stage we'll get an update on what actually happened, just as with the existing $35M company share buyback program, they won't communicate each and every transaction for obvious reasons.

Admin, anything from Matt?

[admin]

Nope. I'm just on some IR distribution list, didn't receive anything lately.

[sfiaes]

"This is going to be my last post on this board. There is no real discourse on this board..."

Right when someone starts asking questions, you decide to leave? That's a little curious. The guy on Yahoo suggests that the founders are trying to pawn off worthless stock to the banks. That seems a little far fetched doesn't it? Especially if you are going to use the money to buy more worthless stock.

Toro says the founders don't have any money. Not sure I believe that either.

How about Omar Kahn and some of the other non founder management? Shouldn't we see them start to buy here at these prices?

[mockbae63]

WTH is going on??????