11-06-2013, 02:18 AM
From NQ IR site
KB Teo has been the Chief Financial Officer of our company since September 2013.
Prior to joining NQ Mobile as CFO, Mr. Teo has over 10 years of investment banking experience with Deutsche Bank, Goldman Sachs and Piper Jaffray. He served as the lead banker for NQ Mobile's initial public offering on the New York Stock Exchange in 2011. Mr Teo is a CFA® charter holder and received his MBA degree from Kellogg school of management in 2002.
Has anyone done any DD on KB? What was his employment package? He was clearly part of the team that took NQ public and had access to a lot of information in 2011. Granted the financials that he was relying on were audited by an outside auditor. Their accounting practices (other than level 1 and level 2 cash accounting which has been resolved) has not changed since 2011.
It is only a matter of time till the 3rd party independent audits come out and dispel the "fabricated" revenue. Piper stopping coverage is not a red flag for me. What new information could that analyst at Piper ascertain that is not available to any other analyst sell side or buyside since the 24th. I think the Piper situation is a cover your ass sitch and that is just the way the sell side works. Why would they try to be a hero and have lawsuits that follow if they happen to be wrong. Risk reward not there till they have more clarity on the situation from independent audits. Sell side research is not in the business of make outsized claims. That is for the world that MW operates and has to deal with the consequences.