Why NQ Mobile Inc Stock Temporarily Popped Today
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: NQ Mobile Inc stock spiked nearly 20% in Wednesday's early trading following rumors that the Chinese Internet services company might be close to filing its long overdue annual form 20-F with the SEC. However, an NQ Mobile spokesman later confirmed to Bloomberg that the company has no new information on the filing. Shares currently sit up around 4% as of this writing.
So what: NQ's annual report was most recently delayed for the second time back on May 15, presumably because NQ's special committee continued to investigate fraud allegations brought late last year by noted short-seller Muddy Waters. And though NQ shares skyrocketed only a few weeks later, after it announced no evidence of such fraud was found, investors' patience is growing thin given the continued absence of both the annual report, and a crucial unqualified audit.
Now what: To be sure, NQ Mobile looks tantalizingly cheap trading at just four times next year's expected earnings, so it's little surprise that there's pent-up demand from traders looking to capitalize on any positive catalysts here. However, I've long insisted there are simply too many red flags with NQ mobile for me to be able to confidently stand behind the stock. For now, that's why I'm still perfectly happy watching this drama unfold from the sidelines.
Warren Buffett: This new technology is a "real threat"
After all, there's no shortage of other trustworthy tech names out there in which investors can comfortably put their money to work. In fact, Warren Buffett recently admitted one emerging technology is threatening his biggest cash cow. And while Buffett shakes in his billionaire boots, only a few investors are embracing this new market, which experts say will be worth more than $2 trillion. Find out how you can cash in on this technology before the crowd catches on, by jumping into one company that could get you the biggest piece of the action. Click here to access a FREE investor alert on the company we're calling the "brains behind" the technology.
The article Why NQ Mobile Inc Stock Temporarily Popped Today originally appeared on Fool.com.Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.