STOCK MARKET: Let's talk stocks and investing

Sorry for your loss on NQ. IMHO it looks like the Muddy Waters report this time does have a lot of substantial evidence against NQ. I'm Chinese and I've never heard of this company up until about a month ago, and most of my friends haven't heard of it either. Its competitor QIHU on the other hand, is a very well known name in China. I just don't feel like NQ holds the market share it claims in China's mobile market because of its relative obscurity. I think the current situation of NQ is very different from EDU. EDU has very good name recognition in China, and people know that it is making a lot of money. NQ's official response so far also looks very weak.

 

Thanks for replying Pest_Ctrl. I should not have invested so much money into a company that I didn't know a lot about. I have been too busy with other things to do research on their history. All I saw was that their stock has gone up 239% this year.

Unfortunately, this will make many foreign investors think twice about investing in ALL Chinese stocks. They will think that all Chinese companies are not credible or transparent. There are some very promising start ups, and reliable companies like China Mobile, Baidu, Sohu that are well established, but I was looking for something new with bigger returns.

Do you think the corporate accounting in China is lags behind the US ?

 

What are your thoughts on DANG?

 

benchwarmer NQ mobile isn't the first and it won't be the last. That is the risk of investing in these foreign companies. I try to limit my china investments to those with government equity like sinopec and china mobile bc I figure if the government is involved they won't really ever go bankrupt.

 

Thanks for your insight on this. I had read a few Chinese analysts were calling NQ a scam before this American report came out.

 

I don't know much about the general corporate accounting practices in China, I think most companies are doing perfectly fine. But the risk is definitely higher especially for smaller and not well established companies, as the financial regulations in China are not as developed, and it's not that easy to catch companies doing shady stuff.

From what little information I gathered, there are some differences in general accounting practices between US and China, and this has been exploited many times by institutions like Muddy Waters to short otherwise great Chinese companies like EDU. The CEO of QIHU recently said that they had to learn the expectations of Wall Street during its early days in the US stock market, and was attacked multiple times by different institutions. I usually take these kind of reports with a huge grain of salt, but for NQ it does seem like at least part of the accusations could be true. This might open up some good buying opportunities for other Chinese stocks though.

 

Good bounce in NQ this morning, but I'm still gonna hold. If it gets above 14 and close to 15 then i'll probably cover it all. I heard an analyst mentioned that these concerns with NQ have been mentioned before (probably a reference to the Chinese analysts calling out NQ). Also, the fact that this thing never really broke 10 was a pretty good sign. Just gonna wait and see what happens....edit....and I just covered 1/5th at 12.40.

edit....covered the rest at 10. too weak. thought about covering it sooner with this guy on the offer pushing it down, but i decided to wait til the 10 breakdown.

 

Honestly, some of this stuff that's being talked about here is just basically gambling by a different name. Just because a stock goes down or is at lows doesn't mean it's a good buy. There's a place for technical analysis when it comes to trading 'normal' companies, but it doesn't really work when you're talking about companies that are trading based on huge news stories or financial scandals or whatever. Unless people know the fundamentals of these companies and have a reasonable rationale for investing in them, no one should be buying or shorting them unless they just intend to be gambling. "It went down a whole bunch" is not an investment rationale.

 

That's correct on the investment part. One shouldn't invest in something because it's down a lot. Are you referring to me wanting to hold NQ simply because it was Muddy Waters that blew up the stock? That wasn't the only reason why I bought it.

And technical analysis still applies even with the crazy stuff. It usually works a lot better in crazy situations.

 

after the recent huge single-day drops in AMRN and CPRX recently, they recovered 20-30% in the days following.

 

Sorry, I'm not referring to any one specific stock or any one particular person - NQ was just one recent example. It just seems there's a lot of "this is a great stock!" and other people just buying based on that - often with little to no understanding of the company or why it might be valued the way it is, etc. It's not healthy investing. For trading, buying for some of these reasons is OK - but traders require a different background/skill set and knowledge of when to get in and out, and it shouldn't be based on just taking advice from a message board.

It works in part because the whole market is going up, but it teaches people a lot of bad habits and will likely come back to haunt them at some point.

True in some cases - but NQ, for example, is being driven by total chaos. I don't think many normal technicals apply at this point because it's broken them all and is trading outside of any range that would be particularly relevant to it.

 

NQ is getting too crazy for me, and I'm never going to get back what I paid for it. I'm gonna try to cash out at 11.50 and use the money to buy something like Twitter IPO.

I've made a mistake, and lost a lot, but at least I learned a lesson here.

 

damn sucks. you'll make it back with twitter eventually.


but may I ask why you bought NQ in the first place? what was the news/info that sold you?

 

http://seekingalpha.com/article/1771392-kingold-jewelry-a-chinese-gem-hidden-for-the-last-two-years

good article mainly about Kingold Jewelry (KGJI) but touches on China fraud and successful instances of Chinese stocks

 

when is the twitter IPO available?

thanks.

 

The stock is completely busted. You shouldn't be holding on to something like this hoping it will come back. The hard breakdown past 10 and inability to bounce wasn't good. Sure it may bounce but it's not something I want to mess around with anymore.

 

I read about them in a Motley Fool article back in August http://www.fool.com/investing/general/2013/08/13/why-nq-mobile-shares-took-off.aspx, they were a hot stock a few months ago,
and outperforming other telecom companies like China Mobile, and China Telecom, I took a chance, and it failed.

 

TSLA isn't doing too well today, but due for a bounce around here at support. Let's see how it holds it.

 

Idk, if all it takes to short the stock is to set 1 Tesla car on fire, then maybe somebody will do it on purpose. I don't think TSLA has bottomed out yet. I'm guessing the 140.00 mark.

 

hey robbie great call on HIMX heading to $8.50 and about not being in a rush to buy last week when it was at $9.50. If anyone listened to robbie and his fine analysis you would've missed the 7% run up today.

So for the third time robbie was wrong and I was right, robbie bring your rebuttal once again.

btw were you c*m laude or summa c*m laude from that $39.99 trading school?