Damage Control Is Not Helping NQ Mobile Inc. (ADR) (NYSE:NQ) As Chinese Stocks Tumble

Posted by Ryan Mandell October 29, 2013 0 Comment 926 views

After losing more than half of its market capitalization the stock of NQ Mobile Inc. (ADR) (NYSE:NQ) poured in some early gains on Monday backed by Macquarie comments that mentioned “We believe NQ is likely to report strong September quarter results on November 13 (in Asia) and is set to begin to buy back shares.” However this remark could neither boost investors’ sentiment nor helped the shares to trade above $10 and dragged further to close the day at $8.8, losing over 17% from its previous close.

In addition to Muddy Waters Research allegations for potential exaggeration of market share and product efficacy by NQ Mobile, Goldbaum Research pointed out Chinese media’s accusation of NQ Mobile’s fabricated partnership with smartphone vendor ZTE.However NQ Mobile made a press release on October 24, 2013 to identify the allegations and accusations as false and inaccurate. But these may not help the company much, as the investors might have learned from a China based fraudulent forest plantation operator, Sino Forest Corp (OTCMKTS:SNOFF) that produced a summary of cash, cash equivalent and short term deposits as well as detailed listing of its bank statements following allegations by Muddy Waters back in 2011.

The allegations against Chinese NQ Mobile did not spare much of Chinese ADRs irrespective of the businesses they may engaged in – whether internet, solar or other. Among the Solar majors JinkoSolar Holding Co., Ltd. (NYSE:JKS) with market capital of around $447.34 million shed almost 12.35% during Monday’s trade following the decline of 9.4% witnessed during Friday’s trade. The stock closed at $20.16 on Monday against the consensus price target of $25.

However JinkoSolar is not the only Chinese solar stock to bleed, but also Yingli Green Energy Hold., Co. Ltd. (ADR) (NYSE:YGE) that shed 12.2% on Friday and 8% on Monday; JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO) that shed 6.9% on Monday and 9% on Friday; and Trina Solar Limited (ADR) (NYSE:TSL) which lost 13.2% on Monday and 6.8% on Friday, among others.

About Ryan Mandell

Ryan Mandell is our senior staff writer covering the White House for Political Report, Ryan also coordinates with the main newsroom news items and contributing write-ups on cultural, social and political activities. Ryan holds an undergraduate degree in journalism, a Doctorate in international relations and a Master Degree in mass communications with an emphasis in print journalism. Ryan also covered the International Society of Social Defense congress in Spain in 2007 and taken part in the Global Forum on economic policies

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