NQ Mobile Whipsaws Traders After Dismissing PwC
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NQ Mobile Inc. surged in New York, erasing an earlier drop, after the Chinese mobile-security service provider said it replaced PricewaterhouseCoopers Zhong Tian LLP with a new auditor to review its 2013 financial statements.
While investors initially worried the change of auditor would fuel short-seller allegations that NQ Mobile has misrepresented financial data, the announcement triggered buying later in the day on speculation the move can clear the path for the filing of an audited 2013 annual report. The stock has lost about four-fifths of its value since Muddy Waters LLC, the research firm founded by Carson Block, said Oct. 24 that the company overstated revenue.