Seeking Alpha

NQ Mobile spikes higher; Morgan Stanley discloses 5.2% stake

  • In a new 13G, Morgan Stanley discloses it has taken a 7.9M-share (5.2%) passive stake in NQ Mobile (NQ +7.6%). Shares of the Chinese mobile app developer have shot higher in response.
  • A slew of hedge funds have already disclosed large stakes in NQ since Muddy Waters levied its extensive fraud allegations in October. Shares are still down 44% from where they closed the day before Muddy Waters' initial report arrived.
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Comments (28)
  • Ruben12345
    , contributor
    Comments (514) | Send Message
     
    Let's have this finally rub off on other Chinese stocks.... Chinese stock undervalued vs American stock on NYSE that's overvalued.
    30 Dec 2013, 10:56 AM Reply Like
  • canb888
    , contributor
    Comments (350) | Send Message
     
    I am long and welcome this news released at 10:50. But SA must be alert that this stock surged by more than 9% from 10:40 till the release in extra heavy volumes. SEC may be looking into front running criminals. Go NQ! Squeeze the shorts.
    30 Dec 2013, 11:01 AM Reply Like
  • unpainted
    , contributor
    Comments (6) | Send Message
     
    Released at 10.44 ET
    30 Dec 2013, 12:17 PM Reply Like
  • SivBum
    , contributor
    Comments (1994) | Send Message
     
    Wonder were those short SA contributors are hiding ... silence are deafening.
    30 Dec 2013, 11:13 AM Reply Like
  • Ruben12345
    , contributor
    Comments (514) | Send Message
     
    exactly
    30 Dec 2013, 11:14 AM Reply Like
  • hyeduk
    , contributor
    Comments (114) | Send Message
     
    and Morgan Stanley will be the one to sell it tomorrow !!!
    30 Dec 2013, 11:49 AM Reply Like
  • Ruben12345
    , contributor
    Comments (514) | Send Message
     
    clear... expect a fair dive tomorrow
    30 Dec 2013, 11:49 AM Reply Like
  • Ruben12345
    , contributor
    Comments (514) | Send Message
     
    looking when to sell... clearly before end if this day... monitoring. made already twice what i made in last 8 weeks
    30 Dec 2013, 11:50 AM Reply Like
  • EtfcTrader
    , contributor
    Comments (28) | Send Message
     
    with such high short sell volume, it might contibue to go higher as it break out $15.
    30 Dec 2013, 11:56 AM Reply Like
  • Dane Drefke
    , contributor
    Comments (8) | Send Message
     
    This is just the catalyst needed to turn the corner. The short squeeze is coming and the company will soon be able to put all the Muddy Waters distortions behind it. They are well positioned for big growth and sit at undervalued levels. I was long before October and more than doubled my stake at the lows.
    30 Dec 2013, 12:17 PM Reply Like
  • hyeduk
    , contributor
    Comments (114) | Send Message
     
    they are already selling it ...NQ is plunging again...WS scam!!!..Morgan Stanley helped someone make a couple dollars to buy gifts...Happy New Year everyone lool
    30 Dec 2013, 12:41 PM Reply Like
  • wallstreet_gunslinger
    , contributor
    Comments (34) | Send Message
     
    wrong. morgan stanley doesn't buy a 5% stake in anyone as a favor. They are money making machines. They are not in the business of doing favors.
    30 Dec 2013, 05:27 PM Reply Like
  • EtfcTrader
    , contributor
    Comments (28) | Send Message
     
    short covering is under way.
    30 Dec 2013, 12:43 PM Reply Like
  • xyq11
    , contributor
    Comments (109) | Send Message
     
    Currently, the stock is hovering between 20 and 25% gain for the day. I don't think that MS took a 5%+ position as a day trade. If the audit comes out clean, which I believe it will (and probably so does MS), then this stock will go considerably higher. The day traders will ride the momentum up and down and make their money but I believe their are some large gains here for the longs.
    30 Dec 2013, 12:48 PM Reply Like
  • EtfcTrader
    , contributor
    Comments (28) | Send Message
     
    Totally agree!!!
    30 Dec 2013, 12:51 PM Reply Like
  • jlbrito
    , contributor
    Comments (13) | Send Message
     
    Keep in mind Morgan Stanley was one of the underwritters of the bond offering
    30 Dec 2013, 01:19 PM Reply Like
  • xyq11
    , contributor
    Comments (109) | Send Message
     
    Also of note is the volume. On a day where a lot of traders are on break for the holidays this stock has a volume of over 9 million shares so far today. This, coupled with the large gain,I believe is indicative of a significant move
    30 Dec 2013, 01:22 PM Reply Like
  • EtfcTrader
    , contributor
    Comments (28) | Send Message
     
    10M+
    30 Dec 2013, 02:01 PM Reply Like
  • brillopad
    , contributor
    Comments (48) | Send Message
     
    I am all in. I just wish I had more money to invest in this solid company at these prices!
    30 Dec 2013, 02:38 PM Reply Like
  • rns702
    , contributor
    Comments (59) | Send Message
     
    Another note to follow up on is that it seems that the lawyers filing the class actions may not have found any lead plaintiffs yet? The deadline was 12/27/13 and I cannot find any cases in the jurisdictions listed in the law firms' press releases looking for a lead plaintiff...

     

    30 Dec 2013, 02:44 PM Reply Like
  • bashiru
    , contributor
    Comments (129) | Send Message
     
    Forget the ambulance chasing lawyers looking to make a buck on the back of a solid company and I say good riddance.
    30 Dec 2013, 02:50 PM Reply Like
  • SimonTIghe
    , contributor
    Comments (66) | Send Message
     
    Morgan Stanley woul not likely buy a small cap with a tiny float to day trade it, they'd annihilate the price on dumping it, possibly losing money on the deal. They're likely taking a position that the stock will double in the next few months with a positive audit and their DD shows that a clean audit is the most likely outcome.

     

    I have also noticed the 'last chance' notices that the lawyers have been posting, no leads to file with it seems. I'd imagine the volatility will continue with a 50% change in price on audit day.
    30 Dec 2013, 02:56 PM Reply Like
  • tonyeg
    , contributor
    Comments (172) | Send Message
     
    After I did my research, I have kept buying after stock corrected and recovered 30%. Last buy at $13 (avg below $13) watched it go down to +$11 ...not bothered. My fidelity broker offered to borrow my shares at 20% annual interest shortly after MW correction. Two weeks later they offered 15% interest...I bought more. Now they are offering 9%. After next release of shorts info percentage will show they are unwinding their positions. My research convinces me of a triple. I keep wondering if this was a China sting operation to bring down MW.
    30 Dec 2013, 03:46 PM Reply Like
  • Ed Porter
    , contributor
    Comments (697) | Send Message
     
    So did MS finance the Muddy Waters "research"?, Or was it a consortium of them and all the hedge funds who have since built up stakes in it?

     

    Whichever way you slice it, Muddy Waters (not to mention other 'firms') are starting to become a pretty reliable contrarian indicator. Whether they geuinely believe their research, or whether they are simply hit pieces to get the stock price an awful lot lower is anyone's guess....

     

    Anyway, disclosure = long after the Muddy Waters report. Thanks.
    30 Dec 2013, 04:30 PM Reply Like
  • xyq11
    , contributor
    Comments (109) | Send Message
     
    I believe that Muddy Waters made a bundle shorting this stock. That is the way the system works.You can make false accusations about Chinese companies and not be held liable. Bloomberg and others are desperate for "stories" so they will give free publicity to Carson Block. He makes the allegations, they publicize them and the stock drops. He completes his short sales, makes his money and the stock eventually recovers to where it was. Those who are hurt the most are those who believed in Muddy Waters scare tactics and sold as the stock dropped - pawns in his game. It is hard to hold onto stock when someone is screaming "massive fraud" and "this stock is a zero" and "It will be delisted in a year." But for those who didn't buy in to his false accusations (and other short sellers on SA), then there are, and will continue to be, ample opportunities to make money going long on this stock.
    30 Dec 2013, 05:24 PM Reply Like
  • COBeeMan
    , contributor
    Comments (1596) | Send Message
     
    That is how the "system" is broken. The rules of the "system" need to be changed so that people like Carson Block cannot get away with actual fraud.
    30 Dec 2013, 06:01 PM Reply Like
  • CoffeGunsAndMoney
    , contributor
    Comments (233) | Send Message
     
    Once the chicken hawk overhead between 14 and 15 is done, a lot of money is going to made on the upside.
    30 Dec 2013, 05:54 PM Reply Like
  • bettercorporategovernance
    , contributor
    Comments (89) | Send Message
     
    This is the broker dealer side of MS. Not principal investing arm. They are reporting on behalf of their clients. Simply means that the funds doing business with MS broker dealer have collectively accumulated >5% of NQ shares.
    31 Dec 2013, 12:28 PM Reply Like
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