The stock price of NQ Mobile Inc (ADR) (NYSE:NQ) surged by 19% to as much as $13.55 per share on reports that the internet mobile services provider will deliver outstanding financial results for the third quarter after the market closes tomorrow.
NQ Mobile’s earnings expectations
Based on data compiled by Thomson Reuters, NQ Mobile Inc (ADR) (NYSE:NQ) is expected to post $0.28 earnings per share, an increase of 75% while its revenue is projected to be around $51.2 million, up by 98% from its financial performance in the third quarter a year earlier.
In addition, Trades Ideas LLC considers NQ Mobile Inc (ADR) (NYSE:NQ) a “storm the castle” candidate (crossing above the 200-day simple moving average on higher than normal relative volume).
The firm supported its conviction for the stock because of the following factors: NQ has an average dollar volume of $203.7 million; it has traded 81,619 shares today; it is trading at 1.55 times the normal volumes for the stock market at this time of day, and it crosses above the 200-day simple moving average.
Storm the castle stocks worth a watch
“Storm the castle stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher,” explains Trades Ideas LLC.
Furthermore, the analysis of TheStreet Quant Ratings noted that NQ Mobile Inc (ADR) (NYSE:NQ) has strength in multiple areas including its robust revenue growth, solid financial position with reasonable debt levels, and solid stock price performance.
Over the past 52-week range, the shares of NQ Mobile Inc (ADR) (NYSE:NQ) climbed from $5.07 to $25.90 per share. However, the stock value of the company plummeted 43% since Muddy Waters LLC issued a report accusing the company of massive fraud. The company denied those allegations. The company established an independent review and engaged the services of law firm Shearman and Sterling to work with a forensic accounting team at Deloitte Touche to prove that the accusations of Muddy Waters are not true.