NQ Mobile Sinks 32 Percent as Audit Head Quits

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

July 4 (Bloomberg) -- NQ Mobile plunged in New York after the Chinese mobile-security service provider said its audit committee head will step down and PricewaterhouseCoopers Zhong Tian LLP sought to expand its review of the company’s 2013 financial statements. David Ingles reports on "First Up." (Source: Bloomberg)

The stock falling to its lowest level in more than 2.5 years overnight.

What was it this time?

David inglis is here to tell us about more troubles for t-mobile.

They put out a statement here that a sickly announced certain changes to the board and they also provided a status of eight on the 2013 mobile audit for their financials.

The updates -- let's put it this way -- they were not quite good.

28% over two basu over 30% drop overnight.

It's the biggest drop in something like nine months.

It's been topsy-turvy for the last year.

Volume turnover was about seven times what we saw for the usual three-month average.

It was quite lively.

Let's get into the meat of this.

The head of the board audit committee, basically the internal part checking the books.

She stepped down for personal reasons.

The external auditor, two related things not part of the investigative team saying it needs more time to expand the review on the company's financial.

This comes at a time when the reputation of the company has been badgered black and blue.

Beyond these two factual, objective statements, it is opened all sorts of negative speculation.

He put these two together and the fact that they have not submitted 2013 financials and they have not quite recovered just yet so that's what you have.

You have a vote of nonconfidence coming from investors.

It has been sold down seven times the three-month average for turnovers.

Actions speak louder than words, i guess, for some investors.

Taking a look at some of the latest numbers from end to mobile -- nq mobile.

I understand they have independent board governors to improve governance here.

They brought them in really in line with some of these recommendations coming from the investigative body looking at whether or not they did in slate revenue.

A california-based attorney, a graduate of the iowa college of law.

A fairly successful vc investor.

A fairly heavy hitter.

They have also pointed one of the first large shareholders as an advisor to the board basically to help enhance shareholder representation there.

And the hope is that they can now -- both them and the company shareholders, can now focus on fundamentals.

Looking at the stock rise,

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change