Hearing lots of chatter about impactful initiatives that will unlock significant shareholder value at NQ Mobile coming in the near-term.  The disconnect between the financial performance and the valuation is beyond extreme.  NQ will grow revenue over 100% again in 2013 to approx $185M with an approx 30% non-GAAP operating margin!!!  NQ has $2.28/ADS in NET CASH on the balance sheet.  Stock at $8.00 is trading at JUST 2.7x EV/EBITDA 2014E!!!!  This is not a sustainable situation.

CEO said on the last earnings call (1Q13 call in May) that several strategic and financial investors have approached NQ in recent months.  This has been confirmed.  Company is more focused on large deep strategic deals with world class companies.  My friend, Matt Mathison, just joined NQ as VP Capital Markets to address NQ’s dismal IR.  This is a huge plus.  Matt is ex-Goldman Sachs and was a founder of Wedge Partners (boutique investment bank with a killer on the ground analyst team in China).  Matt is over-the-wall now and said he was excited about his new position before and now that he knows what’s coming….he is “even more psyched.”  Matt is moving his wife and 4 kids to Dallas for this job.

The Board and China senior management team have been heads-down working on something for the last 6 weeks.  Chatter is that we will hear about it within the next 1-2 weeks or so.

I recommend getting max long NQ here.  Stock is worth well over $20.