NQ Mobile Inc. Is Cheaper (and Riskier) Than Ever Before

NQ Mobile stock just hit a new 52-week low and looks tantalizingly cheap -- but one Fool still thinks the risk isn't worth the reward.

Jul 10, 2014 at 10:00AM

As of Wednesday's close, shares of NQ Mobile (NYSE:NQ) had fallen 70% so far in 2014 after touching a new 52-week-low on Tuesday. The stock now trades at an astoundingly low 2.5 times next year's expected earnings, which makes NQ seem like an absolute bargain at first glance.

But according to the Fool's Steve Symington in the following video, the risks of owning NQ Mobile at this point far outweigh the potential reward.

After all, NQ Mobile is still facing allegations of fraud from noted short seller Muddy Waters. And last week, shares dove more than 30% when -- despite NQ's insistence in June that its independent investigation yielded no evidence of such fraud -- NQ not only told investors its auditor has requested to expand the scope of its 2013 audit, but it also announced the head of its audit committee was stepping down. Worse yet, rather than simply cooperating with its auditor, NQ says it's merely "considering" the request.

And though NQ stock jumped nearly 7% after the company responded to Muddy Waters' latest report, Steve was left wanting more when that response offered no significant new information to address his concerns. Considering there were plenty of other red flags in the months leading up to last week's events that had already scared him away from NQ Mobile stock, he's still convinced investors would be wise to stay away. To hear more about those red flags, as well as a few things investors should be watching going forward, please watch the full video.

Warren Buffett: This new technology is a "real threat"
At the recent Berkshire Hathaway annual meeting, Warren Buffett admitted this emerging technology is threatening his biggest cash-cow. While Buffett shakes in his billionaire-boots, only a few investors are embracing this new market which experts say will be worth over $2 trillion. Find out how you can cash in on this technology before the crowd catches on, by jumping onto one company that could get you the biggest piece of the action. Click here to access a FREE investor alert on the company we're calling the "brains behind" the technology.

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.

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