NQ Mobile Inc (ADR) (NYSE:NQ) chastised investors this week for dumping shares of its stock in the wake of disappointing earnings results. The company said the three-day 31% decline in its share price was “entirely unacceptable and ridiculous,” according to Bloomberg Businessweek.

NQ Mobile

NQ takes advantage of decline

On its website this week, NQ Mobile Inc (ADR) (NYSE:NQ) said it bought back a number of shares after the price plummeted in the wake of its earnings report on April 10. Carson Block of short-selling firm Muddy Waters has accused NQ Mobile of overstating its revenue, and he seized upon the company’s weaker than expected results and statement that it corrected an error in its previous results.

Block said the latest earnings report backed up his theory that NQ is a fraud. Since he accused the Chinese company of fraudulent accounting, shares have fallen 45%. NQ Mobile Inc (ADR) (NYSE:NQ) said one of the reasons it had missed analyst estimates is because of how much it paid out to fight back against Block’s accusations.

NQ Mobile says volatility will be short lived

On its blog, NQ Mobile Inc (ADR) (NYSE:NQ) said that the selloff wouldn’t last long, and it turned out to be right, at least so far. American depository receives of the company’s stock rose 14% in a single trading day this week and continued climbing during regular trading today.

NQ Mobile Inc (ADR) (NYSE:NQ) also said in its release that it acquired58% of Tianjin HuaYong Wireless Technology Ltd. through a series of transactions between 2013 and the first three months of this year. Block called that acquisition “highly suspicious.”

Others remain bullish on NQ Mobile

In spite of Block’s allegations, not everyone is bearish on NQ Mobile Inc (ADR) (NYSE:NQ). Seeking Alpha contributor Renu Singh said today that investors should buy the company’s stock because of its rapid revenue growth and also because of the recent weakness in the shares.

He notes that during the fourth quarter, NQ Mobile Inc (ADR) (NYSE:NQ)’s revenue rose 126% year over year as the company increased its advertising revenue. Also it reported increases in revenue from third-party app referrals. In the same quarter, the company’s net income grew 21% year over year, indicating that growth has continued at a rapid pace.

Singh also pointed to NQ Mobile Inc (ADR) (NYSE:NQ)’s list of well-known customers and also the fact that it has won a number of major contracts. Just within the last five months, the company has partnered with Sprint Corporation (NYSE:S), Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930), China Mobile Ltd. (NYSE:CHL) (HKG:941) and other big clients. The company also revealed a new deal to support over 700,000 new devices for the National Bureau of Statistics.

The investor also pointed to the Chinese company’s strong balance sheet and said it’s “cheap relative to its expected growth.” He notes that NQ Mobile Inc (ADR) (NYSE:NQ) trades at 7 times forward earnings and has $283 million in cash, which is more than its $175 million in debt. He expects the company’s earnings to grow annually at 40%.