NQ Mobile Inc (NQ) Surges After Share Buyback News
By: Michelle Jones
Source: ValueWalk
Others allegedly prevented from asking questions
Vijay Marolia of Regal Point Capital, another known short-seller of NQ Mobile shares, alleges that he and one of his team members were also prevented from asking questions on NQ’s earnings call. He told ValueWalk that they followed the instructions for submitting questions exactly but were not permitted to ask their questions.
He believes NQ Mobile management may have lied when they said they didn’t see any more questions on the line. It’s unclear whether this same issue affected anyone else who may have been on NQ Mobile’s earnings call.
Marolia’s question was similar to Block’s question: “Why would the founder & Chairman / Co-CEO, who was by far the biggest cheerleader of the company within the last year, give up on his announced 100 year strategic vision for the company 99 years ahead of schedule?”
Thoughts on the FL Mobile deal
The short-seller shared some of his thoughts on the FL Mobile transaction, questioning how realistic it is for a company with a market capitalization of $253 million to be able to sell a subsidiary for $600 million. He also wonders why NQ would sell it for shares of a “shell company w/ little assets [Tack Fiori] instead of cash. He pointed out that shares of that shell company were trading at more than 480 times sales.