| Stock (Symbol) | Stock Price | |
NQ Mobile (NQ) |
$18 |
|
| Data is as of | Expected to Report | Sector |
September 11, 2013 |
Now 8 – Nov 12 |
Technology |
| Sharek’s Take | ||
 Today I will purchase NQ Mobile (NQ) for the Growth Portfolio and Aggressive Growth Portfolio, as the stock is breaking out to new highs. NQ is an American technology out of Dallas, TX company that specializes in mobile security and video gaming. The company gets a lot of income from China, and this makes NQ a “China play”. Chinese stocks are hot right now, and you can put NQ in this category, even though the company is American. This company has an estimated long-term growth rate of 40%, yet has a P/E of only around 20. This breakout could push NQ from $20 to $30. |
||
| One-Year Chart | ||
 Wow, this chart was done two days ago when NQ was $18. Today it’s breaking out and is up $2 to $21. Such a strong move in a small period of time. But look at the estimated Long Term Growth Rate os 40%. Even though the P/E has gone from 17 to 20 in two days, NQ is such a bargain. |
||
| Earnings Table | ||
 Last quarter, NQ Mobile had profit growth of 85% on sales growth of 107%. This stock seems ready to fly.The BIG news is NQ crushed earnings estimates by 14 cents. That sent the stock shooting higher. It’s still soaring.Annual Profit Estimates increased, but not by that much. Year-over-year growth is expected to be 58%. Quarterly growth looks exceptional. This is a 60% grower that’s selling for 20 times earnings. |
||
| Fair Value | ||
 NQ had a P/E in the teens the past two years. But then again 2012 profit growth was only 22%. I feel NQ is worth around 25 times earnings, or $25 a share. The stock could go to $30. |
||
| Ten-Year Chart | ||
 NQ is extended in the ten-year chart, but I feel this is because the stock is now is being bought up by institutional investors. At least it based a bit here in the teens. Short base, because it’s a hot stock. |
||
| Power Ranking | Bottom Line | |
Growth Portfolio
6 of 24 |
NQ Mobile is a leader in mobile phone security and also has a big hand in the Chinese phone/iPad video game market. The stock is on fire yet still undervalued. Revenue and profit growth is exceptional. |
|
Aggressive Growth Portfolio
5 of 12 |
||
