NQ Mobile Inc held a conference call this morning to talk about its first, second and third quarter financial results. It seems as if management didn’t want to hear from their number one bear: short-seller Carson Block. When he started to ask a question, his phone line mysteriously dropped the call.
NQ Mobile stock plunges after rally
Shares of the Chinese company’s stock plunged more than 17% at the New York Stock Exchange today after rallying on Thursday after the latest earnings report. NQ posted a third quarter loss and announced some board changes, although management said they expect revenue to skyrocket this year, increasing by as much as 66%.
This week’s earnings report covers unaudited results from the first, second and third quarters of this year. One of the big issues the company has been facing is getting its audited financial results out. The company finally filed its annual report for last year in October after two delays.
Carson Block cut off by NQ Mobile
Shares of NQ Mobile’s stock have been highly volatile since short-selling firm Muddy Waters leveled accusations of fraud against it last year. Since founder Carson Block accused the Chinese company of overstating its revenue, its stock has plummeted and remains down by approximately 75%.
Block signed in to take part in NQ’s earnings call early this morning, and management apparently didn’t like the question he was trying to ask. ValueWalk reviewed a copy of the transcript from the conference call, and it shows that Block was abruptly cut off in the middle of his question. It’s unclear whether this was just an accident, but our readers our pretty smart.
What happened to Henry Lin?
When NQ management got to the part of the call in which they take questions, Block piped up to ask about a report in the Chinese media that indicated Chairman and co-CEO Henry Lin “has been unreachable for a few weeks.”
Earlier this month, it was reported that Lin had resigned for personal reasons. Block said there was speculation in the media that Lin could be in jail because of his “links with former CCTV anchor Rui Chenggang.” He noted that no resignation letter was included in NQ Mobile’s 6-K, calling it “pretty concerning.”
At that point, Block’s question was abruptly cut off, as the operator said, “My apologies, it seems we have lost that line.”
H/T Quoth the Raven