NQ Mobile (NQ) Jumps Ahead of Earnings

NEW YORK (TheStreet) -- NQ Mobile (NQ), a beleaguered target of research firm Muddy Waters, gained 19.4% to $13.51 a day before it is due to release third-quarter earnings.

Analysts surveyed by Yahoo! Finance expect third-quarter profit of 28 cents a share on $51.2 million in revenue.

NQ has been slowly recouping losses since investment firm Muddy Waters initiated a "strong sell" rating, claiming the Chinese telecom had doctored financials and misrepresented business partnerships.

Investors have begun to regain confidence in the stock after management addressed the "false allegations" and took actions to prove the validity of its cash assets.

Despite the run up in shares today, NQ Mobile is still down 41.4% since the report was released on Oct. 24.

TheStreet Ratings team rates NQ Mobile Inc -ADR as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate NQ Mobile Inc -ADR (NQ) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share."

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