The research note was written by Pat Maloney, an analyst at RedTech, a Shanghai-based advisory firm specializing in China’s ConsumerTech, CleanTech and MedTech sectors.

Summary: Qihoo 360 is in the crosshairs of well-known short-report writer Citron Research, the company that deserves kudos for bringing down Longtop Financial. But this latest effort is reminiscent of the Muddy Waters/Spreadtrum debacle, where the HK research outfit published a thinly sourced hit piece that backfired and severely diminished its reputation. Citron’s review of Qihoo recycles questions that have been asked before, partly in our excruciatingly detailed initiation. Unfortunately, many of Citron’s punch lines are based on ill-conceived apples to oranges comparisons or weak supporting evidence. However, there is one area where we do agree with Citron – Qihoo remains overvalued. For added context, take a look at our thoughts on some of the key issues raised in the Citron drive-by.

On May 2, 2011, Citron reported on Sky-Mobi (NASDAQ:MOBI) when the stock was $18. Citron placed a price target of $3 on the stock. … Not more than 4 months later, despite the protests, the MOBI traded at $3 — not because of Citron, but rather the inevitable fate of their business model’s value.

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Ben Jiang

Listener of startups, writer on tech. Maker of things, dreamer by choice.