Calculating the revenue hit from loss of interest

[tacitusk]

Im not sure if this was already done or not. As we know, NQ is moving $100 Million (of $128 million) from their time deposits to Standard Chartered. Since they are moving $100M, the $28M which will be left behind which will likely be accounts 2 and 3. Accounts 4 - 13 will be penalized for early withdrawal. I took each account except the three I do not believe will be penalized and assumed they will lose 100% of the accrued intrerest. Once the cash is verified they will hopefully be able to return it to these time deposits.

From my somewhat sloppy spreadsheet you can see this move will cost the company about $1M, which I believe is less than what was previously assumed.

[admin]

Thanks for that. They'll live, it's idiotic that this was necessary, perhaps they can add it to the bill when they sue for damages. Oops, they've already done that..

[chenlica]

Thanks for that. They'll live, it's idiotic that this was necessary, perhaps they can add it to the bill when they sue for damages. Oops, they've already done that..

even with this shortsellers are raising silly questions like "why do they wire in this amount today looks suspicious"..."they've got tons of cash from MS&DB just weeks ago that saved them"...shorts are always distorting no matter what

[tradestar2012]

Bummer. $1million is a $0.01-0.02 hit to eps over the course of a year. It will not affect 3q #'s but will affect eps going forward.

[Bondguy8]

Bummer. $1million is a $0.01-0.02 hit to eps over the course of a year. It will not affect 3q #'s but will affect eps going forward.

What is right multiple to use and who is their best comp due to the different business segments?

[tradestar2012]

Bummer. $1million is a $0.01-0.02 hit to eps over the course of a year. It will not affect 3q #'s but will affect eps going forward.

What is right multiple to use and who is their best comp due to the different business segments?

You might want to look at articles by Toro and Treasurehunter on seeking alpha. They have a broad comp set and valuation metrics.

[admin]

["You might want to look at articles by Toro and Treasurehunter on seeking alpha. They have a broad comp set and valuation metrics."]

And NQ was busting their combs in the 20s, go figure what they do now..

[Stavros]

My guess is they may have been able to negotiate a short term withdrawal of the $100 million without a penalty in return for assurances that the money would be re-deposited in due course

[kshen]

short term withdrawal of 100M? that seems farfetched. The whole point of the term deposit is they're going to use your money to invest that why they give you that interest rate. If they give it back to you, then it would defeat the purpose.

[Stavros]

Banks make deals with preferred clients all the time mate. This isn't a $10,000 term deposit that you made. It's $100 million! If it were me, I'd cut NQ some slack for a few months if they promised to re-deposit the bundles of cash again.

If not then NQ loses the penalty but won't go back to this bank ever again.