$NQ continued weakness absent material news

NQ Mobile may continue trading into weakness absent material news supporting the share price.

Fraud is off the table as SludgeReports (SR) expected, but the market continues to digest business updates filed with the 20f. Without further information from NQ, financial modeling for the second half of 2014 may be difficult for analysts.

SR expects NQ to provide updated guidance for 2015 once the 2014 quarterlies are filed.  Until then, the weekly technical charts indicate further weakness absent material information being released.

It should be noted NQ is actively releasing information though. Shorting may be risky with the market anticipating PRs each day before the open.   NQ could jar shorts with headlines involving;

  • Re-commitments to buybacks
  • Additional buybacks to absorb dilution of the new acquisitions
  • Further clarity on new acquisition’s fundamentals
  • Enterprise deals and partnerships
  • Renewed Insider share lock-ups
  • 2014 Quarterly guidance updates
  • New buyout offers
  • and more…

Following up on a previous post, last Thursday’s pre-motion conference on the motion to dismiss resulted in the following court schedule.