SP today

[BillNeuburger]

Well I see many differences with Sino Forest, also with the special committee's findings. Obviously they had a blemish with the devices thing, but I don't think with all the scrutiny they would have been able to keep hold of all of management throughout this if they weren't clean. Also, the CFO is new, he has good credentials and education, he should have been the first to go, even before Omar if this was a fraudulent company even if he had a part in the IPO. Block is full of crap, but when everyday buyers can't step in for obvious reasons, the stock is susceptible to this volatility. That being said, it's utterly disappointing that they haven't done enough to protect the stock.

[Moondog]

Yes Bill, I am not saying NQ is a fraud. I am not wholly convinced SINO was, or at least not in the way CB alleged.

What I am saying is NQ is allowing itself to be pushed around and 'owned' by the shorts because of the similarities in management structure and technique.

They are victims of xenophobia and being tech guys, but if they are going to swim in the pond they need to learn how to deal with the big fish.

[maplell2002]

Careful fellas, someone will accuse you of not understanding the deals or being short (in disguise). At this stage in the game I'd suggest Lin steps into a senior President role and you get someone new in to be CEO or at least COO. Not Khan. A Chinese American with credentials is what is needed, and a foot in each continent. Market has lost faith in this guy and a clean audit is probably not enough as the company set up is so obscure.

NQ's PR wouldn't have said 'days away' if they were not under the impression that PwC was wrapping up. You shouldn't draw conclusion before you know the whole story and neither do I. But I do know a little bit more... PwC China had completed their work in April and IC was signed before that. PwC US decided to step in before 4/30 deadline and has been reviewing IC results/numbers since then. It is PwC who call the shots. They were going to sign off on a certain day and then changed their mind at last minute, so NQ can't do anything about it can they? (This happened not just once). I'd like to hear what you would do if you were NQ management.

Keep in mind during this 'quiet' period there's not too much NQ can do (e.g. announce new buyback). They also couldn't say too much to the public as they are restricted by their legal & PwC. However they did try to do their best by releasing FL and NS deals to help with the valuation and to support the SP. But obviously your previous comments showed that you don't appreciate this effort either.

[chenlica]

Careful fellas, someone will accuse you of not understanding the deals or being short (in disguise). At this stage in the game I'd suggest Lin steps into a senior President role and you get someone new in to be CEO or at least COO. Not Khan. A Chinese American with credentials is what is needed, and a foot in each continent. Market has lost faith in this guy and a clean audit is probably not enough as the company set up is so obscure.

NQ's PR wouldn't have said 'days away' if they were not under the impression that PwC was wrapping up. You shouldn't draw conclusion before you know the whole story and neither do I. But I do know a little bit more... PwC China had completed their work in April and IC was signed before that. PwC US decided to step in before 4/30 deadline and has been reviewing IC results/numbers since then. It is PwC who call the shots. They were going to sign off on a certain day and then changed their mind at last minute, so NQ can't do anything about it can they? (This happened not just once). I'd like to hear what you would do if you were NQ management.

Keep in mind during this 'quiet' period there's not too much NQ can do (e.g. announce new buyback). They also couldn't say too much to the public as they are restricted by their legal & PwC. However they did try to do their best by releasing FL and NS deals to help with the valuation and to support the SP. But obviously your previous comments showed that you don't appreciate this effort either.

exactly what i know from private source. pwc US has been interfering and delaying the process in an unuaual way. management cant really disclose anything on that.

[Moondog]

I've said what I'd do if I were management. Change the structure.

All the time you have Lin as the top guy you are open to these short attacks. It's nothing personal, just the way the market works.

The problem we've got now is the pooch is so screwed that even a clean audit may not give the bounce we expect because the brand is damaged.

It's not fair and it's not right, but they've managed to taint these guys.

They need new blood to make it all seem new. Look at TWTR today. They are squeezing on the COO resigning. Same deal. A sacrifice is needed.

[Moondog]

As for the deals Malpell, they are great.

What's not great and what I have been trying to point out to you all is the way the market will interpret them in light of everything else that is going on.

Essentially the deals have a provenance problem. Mix Western xenophobia with some Chinese inscrutability and the market comes up with the idea that these deals are contrived. That's why the stock sold off.

Try to understand that it is not me not 'appreciating' anything, I've just been round the block a few times, and I get a feel for what the market is going to do. Sometimes I'm right often I am wrong. This time I was right.

They need to deal with market perception.

[maplell2002]

I've said what I'd do if I were management. Change the structure. All the time you have Lin as the top guy you are open to these short attacks. It's nothing personal, just the way the market works. The problem we've got now is the pooch is so screwed that even a clean audit may not give the bounce we expect because the brand is damaged. It's not fair and it's not right, but they've managed to taint these guys. They need new blood to make it all seem new. Look at TWTR today. They are squeezing on the COO resigning. Same deal. A sacrifice is needed.

So based on your logic, it's like saying 'If we want to win the war on terror, just replace the president'.

Shorts would still attack NQ even Mark Zuckerberg is in charge.

[chenlica]

As for the deals Malpell, they are great. What's not great and what I have been trying to point out to you all is the way the market will interpret them in light of everything else that is going on. Essentially the deals have a provenance problem. Mix Western xenophobia with some Chinese inscrutability and the market comes up with the idea that these deals are contrived. That's why the stock sold off. Try to understand that it is not me not 'appreciating' anything, I've just been round the block a few times, and I get a feel for what the market is going to do. Sometimes I'm right often I am wrong. This time I was right. They need to deal with market perception.

I believe a company management restructure should only be considered for a better business layout and development, not for the sake of pushing or supporting its stock price. that being said however, i do believe management should be more active even aggresive sending signals to the market to clear mist and uncertainty.

[js253]

The market for NQ's stock as constructed right now consist of three types: short sellers, day traders and spooked longs. There are no real buyers(other than China Rock once in a while), NQ is blacked out, and other institutions are waiting for 20F. The stock probably would have come back anyway, with or without the deals. The fact we are trading at $7.8 again means the market has completely discounted Shearman and D&T's work as BS. Irrational but true. And market can remain irrational for a longtime until an external shock changes the perception.

Such are the cards NQ is dealt, so they have to move forward with bold action. Once 20F and Q1 is out of the way, NQ has to get back in the market and buy up its stock, preferably a large one time tender for say, 10 million shares. The purchase will put a real floor on the stock price, inject confidence in the market place and put the real cash/fake cash question to bed once and for all.

[Moondog]

No what I am saying is move Lin upstairs to President, and make the public connection of the company more market friendly. This is not about the shorts it's about how we connect with the potential buyers. That's a maneuver not a surrender.

You see how some companies fair much better in these short attacks ? It's because of how they present themselves. Both Khan and Lin are horrible at it. The latest balls up is just another example of it.

Nice reductio ad absurdum argument by the way. I love the way that any company criticism is met with personal attacks. Just like Sino the Stockholm syndrome is setting in.