Steven Cohen Ups His Bets on NQ Mobile Inc (ADR) (NQ)

Steven Cohen‘s Sac Capital Advisors revealed a considerably increased its passive stake in NQ Mobile Inc (ADR) (NYSE:NQ). According to a recent 13G filing, the fund now owns 7.72 million American Depositary Shares, each representing five Class A common shares of the company. The stake amasses 5.1% of NQ’s class A common stock and is significantly higher than the previously held position of 263,000 American Depositary Shares.

Co-headquartered in Dallas, Texas, and Beijing, NQ Mobile Inc (ADR) (NYSE:NQ) is a global provider of mobile Internet services, including mobility services & mobile platforms for the enterprise market and mobile security & games for the consumer market. The company’s main products are NQ Mobile Security, NQ Enterprise Shield, NQ Mobile Guard, and NQ Mobile Vault. Recently, NQ announced that it was awarded “Gold” as Fastest Growing, Best Business Expansion, and Best Overall Security Company of the Year at the 10th Annual Info Security Global Excellence Awards, based on criteria including market & product line expansion and percentage of overall growth.

The company also signed a deal with Samsung to promote and resell the latter’s KNOX mobile security services for the entire Android devices portfolio.

Generating profits of nearly $10.00 million in the past 2 years, NQ Mobile Inc (ADR) (NYSE:NQ) is expected to produce earnings per share of $1.41 in 2014. It currently trades around $20.xx, with a Forward P/E ratio of 14.50, which is significantly lower than the trailing P/E of 35.00 for the Application Software Industry. The mean analyst recommendation for the stock is “Buy”.

NQ Mobile Inc (ADR) (NYSE:NQ) is also among PAW Capital’s recent top picks, the fund’s position containing 530,000 shares. According to a SEC filing in January, Brad Gerstner’s Altimeter Capital Management also increased its stake in the company to 37.6 million shares, a proportion of 17.30% of all outstanding class A common stock.

Connecticut-based SAC Capital is also a major shareholder of Zynga Inc (NASDAQ:ZNGA) and Sunedison Inc (NYSE:SUNE), with holdings of 15.76 million shares worth $59.88 million and 12.80 million shares worth $167.03 million, respectively.

Disclosure: none

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