NEW YORK (TheStreet) -- NQ Mobile (NQ) fell early Friday but then surged as it announced it had removed PricewaterhouseCoopers Zhong Tian LLP as its independent auditor and hired a replacement to review its 2013 financial statements.
The company said in a statement Friday it hired Marcum Bernstein Pinchuk LLP as its new auditor because PwC requested information the company does not have, which could impede NQ's obligation to file its 2013 annual report. NQ has twice delayed reporting its audited full-year results to U.S. regulators.
The Chinese mobile security company again said its previously-disclosed financial results are accurate.
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Short seller Carson Block's research firm Muddy Waters said on Oct. 24, 2013 that the Beijing-based company had exaggerated its revenue and improperly represented its cash balance.
The stock closed at $4.35 on Thursday and opened at $3.51 on Friday, but quickly recovered and was up 12.87% to $4.91 at 10:54 a.m.
Separately, 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:
"We rate NQ MOBILE INC -ADR (NQ) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."