NEW YORK (TheStreet) -- NQ Mobile (NQ) shares are up 2.8% to $4.69 on Monday, rebounding from the drop it experienced Thursday after the firm responded to charges from analysts at Muddy Waters accusing the company of illegally selling off shares before its audit announcement last week
The company's shares fell -33% on Thursday after it announced that an independent auditor was expanding the scope of its 2013 inquiry and needed to perform additional procedures.
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Analysts at Muddy Waters had this to say following the announcement, "NQ's July 3rd announcement vindicates short sellers, but was likely delayed in order to give China side insiders a chance to illegally dump stock. The announcement also puts lipstick on the state of NQ's doomed audit."
The Chinese mobile internet service provider responded to those charges today saying, "The company completed an exhaustive and broad-based independent investigation led by senior partners in the U.S. by the reputable and global law firm of Shearman & Sterling... the summary findings are detailed in their press release dated June 4, 2014. The allegations of fraud and wrongdoing were invalidated. The cash was explicitly verified. The revenues were examined and found consistent with reported results and filings. The partnerships and business relationships were verified."
TheStreet Ratings team rates NQ MOBILE INC -ADR as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation: