{
  "docId": "019dd923-622c-750b-8b96-3ac8512a36a9",
  "docSlug": "1f82501868f5",
  "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": "2013-11-12 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 3,
  "pageCount": 6,
  "prevPage": 2,
  "nextPage": 4,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 2,
  "notes": "The slide functions as a character assassination/credibility attack on two key figures (Mathison and Khan) associated with NQ.",
  "elementsJson": [
    "paragraph",
    "bullet_list",
    "footnote"
  ],
  "metadataConfidence": 0.9,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b96-3ac8512a36a9/3",
  "deckHref": "/decks/019dd923-622c-750b-8b96-3ac8512a36a9",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b96-3ac8512a36a9.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b96-3ac8512a36a9#slide-3",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Whatever Mr. Mathison’s motivations for joining NQ and saying what he has, it is clear that investors should not find him credible.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd952-ee3b-7248-a196-d4eeab18be7b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.69,
        "x": 0.17,
        "y": 0.32
      },
      "kind": "list",
      "text": "Rong Xu consulted for NQ for less than six months in 2007, and bought 75% of YDT at the time she left NQ – NQ August 1, 2013 response to J Capital report. Rong Xu was an employee of NQ from September 1, 2006 to December 31, 2008. She bought 75% of YDT after she left NQ – October 25, 2013 conference call. Rong Xu was a NQ consultant from spring 2007 until the end of 2007; she was then a NQ employee (Director of Marketing) from December 2007 to August 2008 – Matt Mathison November 2, 2013 narrowly circulated email.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1cf7f43e-c8ee-4efe-ac54-51af717dec4a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.09,
        "w": 0.72,
        "x": 0.14,
        "y": 0.59
      },
      "kind": "paragraph",
      "text": "In January 2012, Omar Khan became NQ’s US front man. In our original report, we stated that Mr. Khan does not seem to be in a position to be informed about NQ’s China “business”. Despite claiming to be a CEO of equals, Mr. Khan has twice demonstrated that he is unaware of the identities of NQ’s largest purported revenue sources (other than Yidatong), and of the provinces that constitute NQ’s largest markets in China.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e785ef1f-a2cd-400f-9b15-b7100d0f7e2c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.72,
        "x": 0.14,
        "y": 0.16
      },
      "kind": "paragraph",
      "text": "The hedge fund that Mr. Mathison managed appears to have been struggling. It commenced business in 2007, and according to its latest Form ADV (filed with the State of Colorado), five years later, it only had five client accounts and assets under management of $10.4 million.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ecd20931-cb0a-419b-aa56-2c66884f6edb",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.04,
        "w": 0.72,
        "x": 0.14,
        "y": 0.09
      },
      "kind": "paragraph",
      "text": "had done limited research, confused various metrics, and came to baseless and false conclusions. At no time did Mr. Mathison publicly discuss his professional history with JCAP.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ff710d81-6012-4ad0-b9ba-e45f7e26242b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.04,
        "w": 0.72,
        "x": 0.14,
        "y": 0.85
      },
      "kind": "source-note",
      "text": "http://www.adviserinfo.sec.gov/iapd/content/viewform/adv/sections/iapd_AdvIdentifyingInfoSection.aspx?ORG_PK=144270&RGLTR_PK=50014&STATE_CD=CO&FLNG_PK=05425EB40008016D01820C20047D6D59056C8CC0",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "6f5a92f2-3e8b-4fb6-9624-8d8b7bdbc8bc",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.36,
        "x": 0.32,
        "y": 0.55
      },
      "kind": "title",
      "text": "Omar Khan: The Man Who Knew Too Little",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "609f7527-2186-4ce8-b42a-432cdd27cfab",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [],
  "arcBeats": [
    {
      "to": 4,
      "from": 2,
      "beatId": "a6dc3034-4b8f-4a1e-b227-88ea179d1079",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Expose Contradiction",
      "beatSlug": null,
      "evidence": "Slides 2-4 have titles that suggest exposing contradictions in NQ Mobile's business practices.",
      "position": 0,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [
    {
      "to": 4,
      "from": 2,
      "name": "Aha Moment",
      "slug": "03-aha-moment",
      "bestFor": "Data-heavy sections, research findings, analytical arguments",
      "matchId": "386ed063-37b1-40d6-afc2-e0695076a411",
      "evidence": "The document appears to build up to a moment of revelation or aha moment on slides 2-4.",
      "position": 0,
      "objective": "What is the true nature of NQ Mobile's business practices?",
      "structure": "The Problem/Question -> What the Data Shows -> The Insight",
      "confidence": 0.7,
      "description": "Establish a tension, present data, then deliver the insight that changes everything"
    },
    {
      "to": 6,
      "from": 1,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "6711abbd-0343-4337-b08e-165180951263",
      "evidence": "The document implies that there are consequences to not taking action against NQ Mobile, although it is not explicitly stated.",
      "position": 1,
      "objective": "What are the consequences of not taking action against NQ Mobile?",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.6,
      "description": "Quantify what happens if the audience does nothing"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}