Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of NQ Mobile (NYSE:NQ), a China-based provider of mobile and cloud-security products, soared as much as 21% after providing an update into the investigation of a short-sellers' allegations against the company.

So what: According to NQ Mobile's early morning press release in response to Muddy Waters' fraud allegations brought against the company in October, its investigation team -- comprised of Shearman & Sterling and Deloitte & Touche -- has "thus far found no evidence that the Company engaged in the fraudulent conduct that was alleged by Muddy Waters." It should be noted that the investigation isn't complete, yet, though NQ Mobile notes that this six-month process is nearing completion.

Now what: The plot thickens for NQ Mobile, although in a good way for once! This investigation represents one giant step for NQ Mobile in clearing its name, as its independent auditor is also carefully looking over the company's books to determine whether or not Muddy Waters' allegations are true or without merit. While I would much rather suggest you avoid the stock altogether until we have a concrete resolution to this matter, I'm also not oblivious to the fact that the company is relatively inexpensive at less than eight times forward earnings, and it's slated to grow its top line by close to 30% next year. For investors with a high level of risk tolerance, I could fully understand the desire to take a deeper dive into NQ Mobile.

Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

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