NEW YORK (TheStreet) -- NQ Mobile (NQ) shares are up 9.45% to $6.60 on heavy trading volume on Wednesday after the global mobile Internet service provider announced management changes and a founders lockup extension.
The company announced that co-CEO Dr. Henry Lin would be stepping down from his position due to personal issues not related to the company. The company's board promoted company president Zemin Xu to the position, joining Omar Khan as the company's co-CEO.
To show investors the amount of confidence the company has in its own future the company's founders extended a voluntary stock lockup by two years to December 2016. The founders' limited liability company RPL Limited owns 11.3% of the company's outstanding shares.
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TheStreet Ratings team rates NQ MOBILE INC -ADR as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate NQ MOBILE INC -ADR (NQ) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."