NQ Mobile Inc (ADR) (NYSE:NQ) is attracting bulls on its side due to speculations that it would be able to meet a deadline for the filing of its long-delayed 2013 annual report with the Securities and Exchange Commission (SEC).
Bullish options bets on NQ Mobile reached a 14-month high
According to Bloomberg, the bullish bets on the shares of NQ Mobile Inc (ADR) (NYSE:NQ) reached a 14-month high in the options markets.
Data showed that the number of calls to buy the shares of the Chinese mobile internet service provider was 356,000 as of October 8, up from 150,000 by the end of 2013.
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The figure shows that the ratio is 3.9 bullish contracts for every outstanding bearish put on the shares of NQ Mobile Inc (ADR) (NYSE:NQ), the highest since July 2013.
Fred Ruffy, a senior options strategist at Trade Alert LLC commented, “The options trading shows someone has a lot of conviction in the stock. The big catalyst for a move higher would be if NQ can file their 20-F report and move on.”
NQ Mobile stock movement
NQ Mobile Inc (ADR) (NYSE:ADR) is trading at $7.20 per share at the time of this writing, around 3:09 in the afternoon in New York.
Over the past three months, the stock price of the company climbed 64%. The shares of the NQ Mobile Inc (ADR) (NYSE:NQ) is still down 69% since short-seller Carson Block accused the company of overstating its revenue last year. He believed that the shares of the company is worth $1.00.
The management of the Chine mobile internet service provider strongly denied Block’s allegations. The company emphasized that its internal investigation did not find any evidence of fraud. The company is scheduled to submit its audited 2013 annual report or 20-F on November 15. NQ Mobile already delayed the filing of its 20-F two times.
NQ Mobile hired a new independent auditor
In July, NQ Mobile Inc (ADR) (NYSE:NQ) hired a new independent auditor, Marcum Bernstein & Pinchuk LLP to replace PricewaterhouseCoopers Zhong Tian LLP (PwC).
At the time, the company explained that PwC requested information that was not in its possession, which could hinder its responsibility to file its 2013 20-F. NQ Mobile Inc (ADR) (NYSE:NQ) maintained its position that its previously disclose financial results were accurate.
On the other hand, Block sticks to his allegations against the company. He said, “NQ Mobile was, and still is, a near total fraud. Since our report, NQ management has been caught in numerous material lies, the company has admitted to widespread evidence tampering. Its CFO and audit committee chairs have resigned, and its Big Four auditor refused to issue a clean audit opinion.”