NQ Mobile's Battle With Muddy Waters Is Far From Over

When NQ Mobile Inc. (NYSE: NQ  ) was accused of fraud by noted short seller Muddy Waters in October, shareholders endured a harrowing 60%-plus drop over the course of only a few days. However, things had seemed uncharacteristically quiet the past couple of months -- at least, apart from a slew of press releases from NQ regarding new partnerships, and watching several hedge funds open significant passive stakes in the Chinese mobile Internet services company.

But that all changed on Friday, when shares of NQ plunged 20% after its fourth-quarter report badly missed earnings expectations. Sure enough, Muddy Waters unsurprisingly renewed its assault on NQ Mobile in a new research report this weekend, helping shares fall another 13% on Monday.

Fortunately for weary shareholders, the stock rebounded nicely to the tune of 14% Tuesday, after NQ called the selloff "ridiculous"' and announced it had repurchased shares as a result. However, the Fool's Steve Symington argues in the following video that he saw a little too much credibility in the short seller's claims to be able to take them with a grain of salt. To hear exactly what raised Steve's eyebrows while delving into NQ's results, please watch the full video.

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  • Report this Comment On April 16, 2014, at 11:47 AM, morrowa77 wrote:

    Carson, is this this your cousin?

  • Report this Comment On April 16, 2014, at 12:55 PM, Winston09091 wrote:

    Block, Muddy Waters and the rest of these slime ball short sellers should be banned. They make money in a very sleazy way with complete disregard for the economic well-being of honest, decent traders and investors. They are the trash of the financial world. 100% scum.

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