Point72 Asset Management L.P., the new family office of billionaire investor Steven Cohen, disclosed 8,641 shares or less than a 0.1% stake in NQ Mobile Inc (ADR) (NYSE:NQ), a Chinese mobile internet service provider based on its amended regulatory filing with the Securities and Exchange Commission (SEC).
The regulatory filing also indicated that Cohen beneficially owns 139,268 shares or a 0.5% stake, EverPoint Asset Management, LLC beneficially owns 130,000 shares, and Cubist Systematic Strategies, LLC owns 627 shares of NQ Mobile Inc (ADR) (NYSE:NQ).
Historically, the Chinese market has been relatively isolated from international investors, but much is changing there now, making China virtually impossible for the diversified investor to ignore. Earlier this year, CNBC pointed to signs that Chinese regulators may start easing up on their scrutiny of companies after months of clamping down on tech firms. That Read More
According to the filing, the shares reported in the filing are held as American Depository Shares (ADS), and each represents five Class A common stock of NQ Mobile Inc (ADR) (NYSE:NQ) held by the investment funds managed by Point72 Asset Management, Cubist Systematic Strategist and EverPoint Asset Management.
Cohen and his firm Point72 Asset Management, Point72 Capital Advisors, Cubist Systematic Strategies, and EverPoint Asset Management do not directly own Class A common shares of NQ Mobile Inc (ADR) (NYSE:NQ) pursuant to an agreement with certain funds it manages.
Prior to transforming SAC Capital Advisors into family office, the firm held 7.7 million shares of NQ Mobile Inc (ADR) (NYSE:NQ) as of December 31, 2013. The amended filing was submitted reflect the entry of new investment management agreements with certain investment funds by Point 72 Asset Management, Cubist Systematic Strategies and EverPoint Asset Management.
It also reflects the termination of investment management agreements between each of SAC Capital Advisors, CR Intrinsic, and such investment funds, which previously gave investment and voting power to both firms with respect to the Class A common stock of NQ Mobile Inc (ADR) (NYSE:NQ).
NQ Mobile calls selloff ridiculous
Last week, NQ Mobile Inc (ADR) (NYSE:NQ) said the 31% decline of its stock price is “unacceptable and ridiculous.” The Chinese mobile internet service provider repurchased its own shares after suffering a steep decline caused by its weaker-than-expected earnings forecast last April 10.
Short seller Carson Block accused NQ Mobile Inc (ADR) (NYSE:NQ) of being a “massive fraud,” alleging that the Chinese mobile internet service provider is overstating its revenue. Since Block’s accusation, the stock price of the company has dropped 45%.
In a blog post NQ Mobile Inc (ADR) (NYSE:NQ) said, “We are also continuing to consider other things as we deem this most recent selloff entirely unacceptable and ridiculous. This extreme volatility will prove short lived.”
Fourth quarter financial results
NQ Mobile Inc (ADR) (NYSE:NQ) reported fourth quarter financial results that missed the consensus estimates of Wall Street analysts. Last April 10, the company posted $67.9 million revenue and $0.22 earnings per share compared with the $0.32 earnings per share consensus estimate. Its earnings did not meet expectations because of an $8 million expenses related to the establishment of a special committee investigating the allegations against it.
The shares of NQ Mobile Inc (ADR) (NYSE:NQ) are trading around $12.90 per share at the time of this writing around 3:08 in the afternoon in New York.