I never asked him when the audit would be completed or the results of the audit. Naturally I brought it up at the end of the convo and said, "I know you can't give me details but can you at least tell me how you will present the findings. Shareholders and the market needs more than a simple press release." I really believe it warrants more than a press release.
His response was: "Stay Tuned."
Take what you want from that, but that was after a forthcoming conversation about the company, buybacks, and earnings date (still determining the date), Samsung, etc.
When it comes to buybacks, just look up why companies halt buying back stock and we discussed those things in general terms not necessarily pertaining to NQ. So that's the response I was expecting and looking for.
As noted above, I figured that if he was in China today, he could still make it back to San Fran in time for the conference, but assuming he was here on Tuesday, left on Wed or later that day after speaking to me, that brings us to getting there between wed and Thurs, and staying for 2-3 days? Why would anyone need to go to China for 2 days with 24 hr flight time and be there during the weekend? The reason I think he was here on Tuesday was because he confirmed the time with me in Central time to call so he was likely in the States.
With that said, was he called to China for something shitty? I hope not, was he called there for something positive, let's hope so, is he even there? His cellphone implies to me that he is.. but to go there for a couple of days with all that travel time seems strange to me. I never worked in an environment like that and you'd assume most things this company does is via video conference calls.
I think the weak hand shorts want to try to take advantage of any rumor they can latch on to regarding the price drop. But I continue to suspect the sudden drop was just a way to manipulate the market, so some big money can make a whole lot more money. Interestingly it was reported today that:
Shares of NQ Mobile Inc (ADR) (NYSE:NQ) were the target of unusually large options trading on Friday. Stock investors acquired 20,932 call options on the stock, AmericanBankingNews.com reports.
I think many people are trying to get into position when this stock pops upward after the audit, some by call options, some by stock manipulation.
03-02-2014, 01:00 PM (This post was last modified: 03-02-2014, 01:20 PM by kshen.)
Whoever sold owned the shares. However, this was definitely done purely to drive down price.
Now why would someone liquidate Other than purely to drive down the price? If someone had insider info, they wouldn't do something completely stupid and obvious as this. Goldbaum is clearly talking out of his ass like usual with uncertain foreshadowing of events that will never happen.
Also secondly, no news has come out yet. If this was indeed news driven, anyone could have easily and quietly liquidated their shares before close in the 21s. In fact 3 large block trades went through cleanly before then.
therefore this was clearly another short attack (using real shares bought) to cause retail to panic. Because a simple shorting would have triggered a stop at 10% instead of 18%.
Look at the volume that ensued? Someone definitely picked up a ton of shares since an initial 128K sell netted an 18% drop and then an 8M share volume exchanging hands. At this point it could be shorts covering their positions for all we know
Lets take a look at daily short volume 2/28 : 26%
10/24 : 18%
10/25 : 25%
With 90%+ institutional volume, shorts are literally screwed. They literally HAVE to get their cover shares from retail investors.
There's no daily volume to support any covering. So here comes this shady flash crash 128K volume drop to generate 8M trade volume before a weekend, 1 week or 2 before earnings and possible audit.
You guys do the math on what is more likely. A: a blatant insider information selling due to actual bad news, with a measly 128K dump 20% below market value or desperate shorts who need to spook retail investors with 90% float owned by institutions.
'kshen' pid='38526' datel Wrote:Whoever sold owned the shares. However, this was definitely done purely to drive down price. Now why would someone liquidate Other than purely to drive down the price? If someone had insider info, they wouldn't do something completely stupid and obvious as this. Goldbaum is clearly talking out of his ass like usual with uncertain foreshadowing of events that will never happen. Also secondly, no news has come out yet. If this was indeed news driven, anyone could have easily and quietly liquidated their shares before close in the 21s. In fact 3 large block trades went through cleanly before then. therefore this was clearly another short attack (using real shares bought) to cause retail to panic. Because a simple shorting would have triggered a stop at 10% instead of 18%. Look at the volume that ensued? Someone definitely picked up a ton of shares since an initial 128K sell netted an 18% drop and then an 8M share volume exchanging hands. At this point it could be shorts covering their positions for all we know Lets take a look at daily short volume 2/28 : 26% 10/24 : 18% 10/25 : 25% With 90%+ institutional volume, shorts are literally screwed. They literally HAVE to get their cover shares from retail investors. There's no daily volume to support any covering. So here comes this shady flash crash 128K volume drop to generate 8M trade volume before a weekend, 1 week or 2 before earnings and possible audit. You guys do the math on what is more likely. A: a blatant insider information selling due to actual bad news, with a measly 128K dump 20% below market value or desperate shorts who need to spook retail investors with 90% float owned by institutions.
Bear raid gone awry with 1500 share trade at $22.33 as the signal but it's just a theory. Best to stick with the less egregious story of human error/glitch imo.
03-02-2014, 02:22 PM (This post was last modified: 03-02-2014, 02:26 PM by kshen.)
whoever sold the shares had to have owned them. Otherwise the SEC short sell breaker would have tripped at -10%. That rules out fat fingering and confusing NQ with an index unless they also own NQ as well
03-02-2014, 02:50 PM (This post was last modified: 03-02-2014, 02:52 PM by reg.)
'kshen' pid='38531' datel Wrote:whoever sold the shares had to have owned them. Otherwise the SEC short sell breaker would have tripped at -10%. That rules out fat fingering and confusing NQ with an index unless they also own NQ as well
The thought of a brokerage firm trading on the NYSE when they meant to trade on the CME does boggle the mind.
As soon as the selling started I thought of the scene in "A Good Year" where Russell Crowe makes it look so good. Of course in the movies greedy bastard day doesn't get halted and they succeed in buying the shares back lower.
'kshen' pid='38526' datel Wrote:Whoever sold owned the shares. However, this was definitely done purely to drive down price. Now why would someone liquidate Other than purely to drive down the price? If someone had insider info, they wouldn't do something completely stupid and obvious as this. Goldbaum is clearly talking out of his ass like usual with uncertain foreshadowing of events that will never happen. Also secondly, no news has come out yet. If this was indeed news driven, anyone could have easily and quietly liquidated their shares before close in the 21s. In fact 3 large block trades went through cleanly before then. therefore this was clearly another short attack (using real shares bought) to cause retail to panic. Because a simple shorting would have triggered a stop at 10% instead of 18%. Look at the volume that ensued? Someone definitely picked up a ton of shares since an initial 128K sell netted an 18% drop and then an 8M share volume exchanging hands. At this point it could be shorts covering their positions for all we know Lets take a look at daily short volume 2/28 : 26% 10/24 : 18% 10/25 : 25% With 90%+ institutional volume, shorts are literally screwed. They literally HAVE to get their cover shares from retail investors. There's no daily volume to support any covering. So here comes this shady flash crash 128K volume drop to generate 8M trade volume before a weekend, 1 week or 2 before earnings and possible audit. You guys do the math on what is more likely. A: a blatant insider information selling due to actual bad news, with a measly 128K dump 20% below market value or desperate shorts who need to spook retail investors with 90% float owned by institutions.
Karl,
Thanks for your explanation, which makes sense. Just have two questions:
(1) Are you saying that a mere 128k volume would trigger such a large drop in the SP? That sounds rather unlikely to me - I have read elsewhere that a 1m sell order created the flash crash, which would make more sense to me?
(2) Why did this happen at pretty much exactly the same time that the overall market went down (apparently driven by news flom from Ukraine)? That would not really support the short attach thesis but rather algo systems selling masively and initiating stop loss selling.
03-03-2014, 01:21 AM (This post was last modified: 03-03-2014, 01:29 AM by kshen.)
I agree it is far fetched that a mere 128K would cause this. About as far fetched that any broker would make a mistake as to confuse NYSE with CME. But someone said looking from the tapes that a 128K block was sold at a limit in the 17s. I honestly am not completely sure what happened, but a bulk sell did occur, whatever the reason at much lower than the market value. Here is a link to the short uptick list published friday for NYSE. http://traderupdates.nyse.com/2011/03/sh...ymbol.html NQ is not on Friday's txt file. Will have to wait til monday to see
How about Whitley Tilson who openly said that he is short NQ recently. Did he just buy enough shares to sell all of them at market to trigger the stop loss order placed by longs at $21, $20.5, $20, $19.5, $19, $18.5, $18 and $17.50. Many longs and those who bought recently must have placed stop orders in because the last big plunge in Oct by MW was too much gut wrenching. Just seeing the tape with the stock down over 20% would have brought back the bad memeory of fraud and delisting, going to zero etc. Perhaps it was Tilson who got off guard losing money and it was month end which he has to show his book to his investors. In order to close the shorts and even out his trades and cut the loss, he orchastrated this "act" with a few of his friends. With such a small float, this is the only way to buy back his shorted position before the big news hit the wire this month which will certainly cause him to lose even more.
QCOR, another one of Tilson's short dived in the last 3 trading sessions plunging from $80 to $60. It just reached all time high before the big drop. Is it a coincidence, you be the judge.
