NQ Mobile Inc (ADR) (NYSE:NQ) shares are spiking today after Morgan Stanley (NYSE:MS) disclosed a more than 5% stake in the company. Shares shot up more than 16% at the New York Stock Exchange and kept climbing after what amounts to a vote of confidence from the well-known investment firm.
Morgan Stanley wades further into NQ Mobile
Morgan Stanley’s stake in NQ Mobile Inc (ADR) (NYSE:NQ) was disclosed today in a filing with the Securities and Exchange Commission. As of Dec. 20, the firm held approximately 7.9 million shares of NQ Mobile. According to regulatory filings for the quarter ending in September, Morgan Stanley (NYSE:MS) held less than 300,000 shares of NQ Mobile.
Paul J. Isaac's Arbiter Partners returned -19.3% in the third quarter of 2021, according to a copy of the hedge fund's quarterly investor correspondence, which ValueWalk has been able to review. Following this performance, the fund's return sits at -1.6% for the year to the end of September. In comparison, the S&P 500 returned 15.9%, Read More
The company’s stock is traded on the New York Stock Exchange as an American Depositary Receipt.
NQ Mobile under the microscope
NQ Mobile Inc (ADR) (NYSE:NQ) has been the subject of scrutiny since notorious short-selling firm Muddy Waters announced it was shorting it and questioned the company’s accounting practices. Earlier this month, Muddy Waters turned up the heat on NQ even further, offering to pay for an outside auditing firm to examine the company’s financial statements and determine whether the firm’s allegations are true. At this point, NQ Mobile has not responded to Muddy Waters’ offer, although we have contacted the company’s PR spokesperson for a comment on it.
Since Muddy Waters made its first allegations in October, NQ Mobile has gone on to sign deals with major company after major company, including China Mobile, Telkomsel and Ingram Micro Mobility.
A volatile year for NQ Mobile
NQ Mobile shares have not yet recovered all of the losses since Muddy Waters took aim at the China-based company. A number of other major investment firms have also piled into the stock, making Morgan Stanley just the latest major firm to take a significant position in NQ, albeit a passive one.