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: Following a harrowing 29% plunge yesterday, NQ Mobile, (NYSE: NQ) rebounded 10% Friday as bargain seekers snapped up shares of the Chinese mobile Internet services company.
So what: NQ Mobile sent skittish investors running for the hills yesterday after delaying its annual report for the second time amid allegations of fraud from noted short-seller Muddy Waters. Previously, NQ insisted the investigation being performed by its independent auditor had uncovered no evidence of such fraud, but still filed for the original 15-day extension from the SEC's April 30 deadline as it awaited the results.
Now what: I'll admit I'm a perennial optimist, and I understand the stock appears to be ridiculously inexpensive trading around five times next year's expected earnings. However, I've repeatedly voiced concerns that Muddy Waters' red flags hold a bit too much merit to be completely taken with a grain of salt. As a result, however "cheap" NQ Mobile shares might appear, the stock remains a risky bet I'm not willing to take.
