Why NQ Mobile Inc Shares Plunged 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: Despite announcing a pair of new partnerships, shares of NQ Mobile Inc fell by as much as 15% early Thursday before settling to close down around 8%.
So what: First, NQ mobile announced its FL mobile gaming subsidiary has entered into an agreement with Japanese game operator Mobcast and developer Gumi to bring to China their jointly developed mobile soccer game, Chain 11. The game has garnered roughly 1 million downloads in Japan, and FL Mobile CEO Dr. Tony Ni insists it has "the potential to be a massive hit worldwide." Ni elaborated bringing the game to China both "enhances FL Mobile's multi-player offerings while solidifying our position among the top operators of games in China."
Separately, mobile device insurance provider eSecuritel announced it will augment its services by providing NQ Mobile's security and privacy software solutions.
Still, specific financial terms weren't released for either partnership, so it's difficult to quantify how they'll affect NQ Mobile's top and bottom lines.
Now what: The elephant in the room remains in that NQ Mobile still hasn't released its annual report on Form 20-F, which was originally due to be filed on April 30. NQ Mobile has already delayed the filing twice, however, amid allegations of fraud and as it awaits completion of its independent auditor investigation. For now, NQ Mobile can announce all the new partnerships it wants, but given all the red flags continuing to crop up, I certainly can't blame the market for taking another step back today.
Top dividend stocks for the next decade
Until NQ Mobile's adverse situation is completely resolved, I prefer to put my money to work in something a bit more stable. In fact, the smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.
The article Why NQ Mobile Inc Shares Plunged 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.