{ "docId": "019dd923-622c-750b-8b96-320acde85f99", "docSlug": "339649d36580", "documentTitle": "NQ Mobile (NQ)", "authorId": "51_Muddy_Waters", "authorName": "Carson C. Block", "documentKindSlug": "research-note", "documentKindLabel": "Research note", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2013-11-01 00:00:00", "orientation": "portrait", "aspectRatio": 0.77272725, "pageNumber": 5, "pageCount": 18, "prevPage": 4, "nextPage": 6, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 5, "notes": "The slide highlights the failure of management to deliver on promised rebuttals, fueling investor skepticism.", "elementsJson": [ "paragraph" ], "metadataConfidence": 0.9, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b96-320acde85f99/5", "deckHref": "/decks/019dd923-622c-750b-8b96-320acde85f99", "deckJsonHref": "/decks/019dd923-622c-750b-8b96-320acde85f99.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b96-320acde85f99#slide-5", "components": [ { "bbox": null, "kind": "callout", "text": "Due to the nonexistence of the \"strong reply\", investors showed hesitation about NetQin's business performance, and the stock price continues to drop.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-f5d2-7501-bd76-c665cde3733d", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "stock price: 17.22%", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd952-f5d2-7501-bd76-cdb2c58e8144", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.7, "x": 0.15, "y": 0.36 }, "kind": "paragraph", "text": "On October 28, NetQin's stock price reached a low of USD 7.58, with the closing price falling 17.22%. The stock price of NetQin fell 62%, from USD 23.05 to USD 8.8 within 3 transaction days; the market value dropped USD 880 million.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "174e3a09-2740-4109-9563-be688120c1b1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.7, "x": 0.15, "y": 0.3 }, "kind": "paragraph", "text": "Due to the nonexistence of the “strong reply”, investors showed hesitation about NetQin's business performance, and the stock price continues to drop.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "37ba1fb5-efe3-4899-9602-f2018d63e1e0", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.7, "x": 0.15, "y": 0.55 }, "kind": "paragraph", "text": "US law firm Wites & Katpetan announced it would carry out an investigation on NetQin yesterday. On the second day since the Muddy Waters's report was released, The Rosen Law Firm from the US announced it would carry out an investigation on whether NetQin is engaged in a massive fraud.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "7d7cce8c-37c1-4c38-a740-2ccb22864e7f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.7, "x": 0.15, "y": 0.2 }, "kind": "paragraph", "text": "On October 25, NetQin CEO Lin promised during an interview that at 8 pm that night, NetQin would announce an official reply to Muddy Waters's accusation. Nevertheless, as of the time this new article published last night, NetQin still had not announced its said reply.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8008946f-48bc-46e0-a986-8d7ac04cb1e0", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.7, "x": 0.15, "y": 0.11 }, "kind": "paragraph", "text": "Further to the large fall last week, on the evening of October 28, NetQin's stock price continued falling 17.22%. The market value of NetQin is USD 453 million now, which is USD 880 million less than last Thursday.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8896e8fc-de04-4999-b03d-998d0bd7f95d", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "Hao said that since China stocks have listed on the US stock exchange, there have been similar cases. He thinks that Muddy Waters short sells only after serious investigation, and does not make fictitious reports. Otherwise, the goodwill, which is accumulated over many years, would be destroyed. \"But the truth needs\" — HAO Junbo", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd952-f5d2-7501-bd76-c904a3cee5e0", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 5, "from": 2, "beatId": "a789c1c2-2c8b-4e1a-8dbe-01246bf5b8a7", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "The Monster (NetQin's alleged fabrications)", "beatSlug": "overcoming-monster-the-monster", "evidence": "Slides 2-5 expose contradictions in NetQin's claims", "position": 0, "confidence": 0.8, "parentBeatName": "Hook", "parentBeatSlug": "hook" } ], "loops": [ { "to": 5, "from": 2, "name": "The Reveal", "slug": "05-the-reveal", "bestFor": "Product launches, strategic pivots, unexpected findings", "matchId": "5ab0d025-a1ce-4e7d-9362-1a638084f6ed", "evidence": "Slides 2-5 reveal contradictions in NetQin's claims", "position": 0, "objective": "Expose NetQin's alleged fabrications", "structure": "Setup the Question -> Build Suspense -> The Big Reveal", "confidence": 0.8, "description": "Build mystery and anticipation, then deliver a surprising or powerful conclusion" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }