The volatility surrounding NQ Mobile has been a trader’s dream and investor’s nightmare. NQ has been the subject of fraudulent claims made by short sellers Muddy Waters. Though nothing has been released to verify either investment thesis, the street believes that all will be settled when NQ annual report (aka 20-F) is released. The annual report was expected 60 days ago; however the delay has caused skepticism in markets.
Gossip Causing Daily Stock Fluctuations
It seems there is a daily rumor that will cause NQ to rise/fall double digit percentages. Today, for example, NQ was up 10% on rumor that the delayed 20-F is ready to be released. Nothing transpired.
It will take time (I won’t pretend to know of a timeline) before this long awaited report is released. Therefore, both the company and auditor will ensure to minimize disputable points. Before this, a baseless rumor that auditor PwC resigned caused massive selling.
“Buy the rumor, sell the news” does not apply to NQ. Thus, as an investor, I do not see the reward in speculating which way NQ will trade or when PwC will issue the audit. Let the traders have this one.