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) jumped 19% Monday in anticipation of a quarterly earnings beat when the Chinese mobile Internet services company reports tomorrow.

So what: To be sure, NQ Mobile shares did skyrocket following its solid earnings report and strong forward guidance back in August, so it could very well beat expectations again this time around.

It's also worth noting, however, that shares of NQ Mobile have been especially volatile since noted short seller Muddy Waters first accused the firm of fraud late last month, including assertions that "NQ's cash balances are highly likely not to be real." Then, only a few days later, the stock plunged again when a separate report surfaced stating NQ mobile had announced false details regarding its partnership with up-and-coming Chinese smartphone maker ZTE.

As it stands, in NQ's attempts to prove its cash balances aren't fabricated, the company not only says it has formed an "independent special committee" to investigate the claims but has also issued four separate press releases detailing what it says are cash transfers to Standard Chartered Bank to "allow an independent verification of the account validity and provide related details to any interested investor who requests the information in good faith."

Now what: As it stands, even after today's pop, NQ Mobile stock is still trading 48% below its 52-week-high of $25.90 per share set only three weeks ago. If NQ can successfully rebut Waters' claims, shares at today's levels could prove a bargain for investors down the road. However, considering that NQ hasn't definitively done that yet -- which admittedly could be thanks to the enormous scope of Waters' 80-page report -- I think shareholders would also be wise to note significant short-term risk still exists.