NQ Mobile Spikes On Rumor Of Long-Delayed Annual Report

NQ Mobile Inc.

shares spiked Wednesday on a rumor the company may be close to filing its long-overdue annual report with the Securities and Exchange Commission. Shares traded recently at $6.79, up 6.6 percent. But they're still far from relatively recent highs of more than $21 in February and March. China-based NQ delayed its annual report in April, telling investors it would file "as soon as practicable" after concluding an accounting investigation and independent audit. Results of the company sponsored investigation released last month appeared to clear the company of alleged bribery and accounting fraud. The company has been targeted by short seller Carson Block's Muddy Waters since late last year. Block raised accusations of accounting fraud and bribery, leading to the recently concluded investigation. Short interest as of June 13 accounted for about 27 percent of NQ's 54 million shares outstanding. The number of shares held as short interest had risen 28 percent from the previous month.