Dallas, Texas 05/16/2014 (FINANCIALSTRENDS) –The Chinese mobile service provider, NQ Mobile Inc. (ADR) (NYSE:NQ)’s stock is hitting new low following its delay in filling annual report on Form 20-F. The company was alleged by short seller Muddy Waters LLC, for overstating revenue. However, the company mentioned in a statement released yesterday that it needs additional time to file its annual report for the year ended December 31, 2013 and is continuously working to file it as soon as possible.
NQ Mobile’s spokesman, Kim Titus today mentioned that the company is working with auditors with regards to review of its financial statements which, so far, have not found any incident of fraud and he also mentioned that the company is nearing completion of the same.
Earlier NQ Mobile Inc. (ADR) (NYSE:NQ) delayed the filing of its audited annual report on April 30, 2014 and sought 15 days extension stating it needs addition time as it is nearing completion and waiting final results of an investigation into Muddy Waters’ allegations.
Market can’t wait more…
A special situations strategist at Albert Fried & Co., Sachin Shah mentioned in a telephonic interview that market was expecting at least something and it is surprising that the company still needs more time. The filing was expected by May 15, 2014 and further delay certainly undermines NQ Mobile’s credibility, reported Bloomberg.
Though NQ Mobile Inc. (ADR) (NYSE:NQ)’s spokesman mentioned in an email that there will be no impact on previously reported financials; investors are waiting for the filing as an official confirmation on whether Muddy Waters’ assertion about NQ Mobile is a massive fraud has any merit.
In a notable move, equity research firm Canaccord suspended its rating on NQ Mobile given the delay in filing Form 20-F.
The Stock Movement:
The stock hit the intraday-low of $7.20 during yesterday’s trade before closing at $7.27, nearly 29% below its previous close.