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Trade-Ideas LLC identified

NQ Mobile

(

NQ

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified NQ Mobile as such a stock due to the following factors:

  • NQ has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.6 million.
  • NQ has traded 662,971 shares today.
  • NQ is trading at 19.38 times the normal volume for the stock at this time of day.
  • NQ is trading at a new high 17.02% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on NQ:

TheStreet Recommends

NQ Mobile Inc. provides mobile Internet services in the People's Republic of China and internationally. The company provides products and services in the areas of mobile security, privacy, productivity, personalized cloud, and family protection. NQ has a PE ratio of 192.

The average volume for NQ Mobile has been 808,400 shares per day over the past 30 days. NQ Mobile has a market cap of $325.9 million and is part of the technology sector and computer software & services industry. Shares are up 5% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates NQ Mobile as a

sell

. Among the areas we feel are negative, one of the most important has been poor profit margins.

Highlights from the ratings report include:

  • The gross profit margin for NQ MOBILE INC -ADR is rather low; currently it is at 23.58%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -2.82% is significantly below that of the industry average.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Software industry and the overall market, NQ MOBILE INC -ADR's return on equity significantly trails that of both the industry average and the S&P 500.
  • After a year of stock price fluctuations, the net result is that NQ's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • NQ MOBILE INC -ADR reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, NQ MOBILE INC -ADR reported poor results of -$0.98 versus -$0.04 in the prior year. This year, the market expects an improvement in earnings ($0.12 versus -$0.98).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 85.4% when compared to the same quarter one year prior, rising from -$17.04 million to -$2.49 million.

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