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Muddy Waters, which is betting against NQ Mobile, alleged in its report that the company was a “massive fraud” and that its rightful stock price was “zero.” Among other allegations, Muddy Waters contended that NQ Mobile had far overstated its presence in China both in terms of the size of its paying user base and market share.
The firm also alleged NQ Mobile’s biggest customer was itself, through a shell company called Yidatong. Muddy Waters’ 81-page report, which it tweeted a link to Thursday afternoon, chronicled attempts to track down Yidatong’s offices that repeatedly found that the addresses did not exist, that the offices were empty or that that building
management had not heard of Yidatong. |
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