Why NQ Mobile Inc Shares Plunged Today

Is NQ Mobile's drop meaningful? Or just another movement?

May 29, 2014 at 6:02PM

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Despite announcing a pair of new partnerships, shares of NQ Mobile Inc (NYSE:NQ) fell by as much as 15% early Thursday before settling to close down around 8%.

So what: First, NQ mobile announced its FL mobile gaming subsidiary has entered into an agreement with Japanese game operator Mobcast and developer Gumi to bring to China their jointly developed mobile soccer game, Chain 11. The game has garnered roughly 1 million downloads in Japan, and FL Mobile CEO Dr. Tony Ni insists it has "the potential to be a massive hit worldwide." Ni elaborated bringing the game to China both "enhances FL Mobile's multi-player offerings while solidifying our position among the top operators of games in China."

Separately, mobile device insurance provider eSecuritel announced it will augment its services by providing NQ Mobile's security and privacy software solutions.

Still, specific financial terms weren't released for either partnership, so it's difficult to quantify how they'll affect NQ Mobile's top and bottom lines.

Now what: The elephant in the room remains in that NQ Mobile still hasn't released its annual report on Form 20-F, which was originally due to be filed on April 30. NQ Mobile has already delayed the filing twice, however, amid allegations of fraud and as it awaits completion of its independent auditor investigation. For now, NQ Mobile can announce all the new partnerships it wants, but given all the red flags continuing to crop up, I certainly can't blame the market for taking another step back today.

Top dividend stocks for the next decade
Until NQ Mobile's adverse situation is completely resolved, I prefer to put my money to work in something a bit more stable. In fact, the smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information