NEW YORK (TheStreet) -- Shares of Sky-mobi Ltd (MOBI) are up 8.05% to $7.25 after it announced the sale of its 37.9% equity interest in Shanghai Fangcun Information Technology (Fangcun), a leading China-based mobile game developer, to Guangdong Alpha Animation and Culture Co.
The Company realized a capital gain of $9 million from this transaction.
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Separately, TheStreet Ratings team rates SKY-MOBI LTD -ADR as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate SKY-MOBI LTD -ADR (MOBI) 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 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 poor profit margins."