NEW YORK (TheStreet) -- Shares of NQ Mobile Inc. (NQ) are gaining by 4.49% to $4.89 at the start of trading on Wednesday, as the stock continues to rise following the company's $80 million share buyback program announcement.
The global provider of mobile Internet services announced on Tuesday that its "board of directors has authorized a share repurchase program under which the company may repurchase up to $80 million of its shares over the next 12 months."
NQ Mobile said it will use its existing cash balance to fund the repurchase program.
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The company said shares will be repurchased through a variety of means, including on the open market, through privately negotiated transactions, in block trades, and/or through other legally permissible means, depending on market conditions.
Separately, 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 a number of negative factors, 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."