Target win. 1500 locations

[tradestar2012]

See below. I'm really surprised at how muted the reaction was today. Target is 1,500 locations. I'm not sure if people realize how difficult it is to get product placement into Target, but its not easy. Especially for new brands and products with limited SKUs. Usually its a multi-month, if not years process to get your product onto store shelves. Even then, new products are typically done on a regional basis to test the product before a full roll-out. In this case, Target seems to really like the product and has opted to do a full roll-out right away. Just as importantly, there is a local target for virtually every US investor in NQ Mobile. If they have any doubt as to the existence, validity, demand or ramp of NQ mobile in the US, they can do their own channel check at the local Target. This is a huge win.

http://finance.yahoo.com/news/nq-mobile-...00831.html

BEIJING and DALLAS, June 24, 2013 /PRNewswire/ -- NQ Mobile (NQ) a leading global provider of mobile Internet services, is pleased to announce that it now has relationships to provide its flagship products: NQ Mobile Security™, NQ Family Guardian™ and NQ Mobile Vault™ for Android that will bring the total to more than 3,500 retail locations across the U.S. beginning June 24, 2013.

(Logo: http://photos.prnewswire.com/prnh/20121224/CN34262LOGO)

These retailers provide in-store marketing and point-of-sale promotion of NQ Mobile's top-selling mobile security, privacy and family protection services.

"This expanded nationwide presence will provide NQ Mobile with an unparalleled opportunity to engage with premium consumers at point of purchase," said Omar Khan, Co-Chief Executive Officer, NQ Mobile. "By educating consumers about how to keep their phones, personal information and family safe, we continue to reinforce that our solutions are best-in-class in securing vital mobile information and protecting families from looming mobile threats."

In addition to announced relationships with Verizon Premium Wireless Retailers, such as The Cellular Connection, A-Wireless, and Go Wireless, and MetroPCS and Cricket retailers such as, Gratis Cellular and I-Communication, NQ Mobile flagship products will be rolled out at 1,500 Target stores nationwide beginning June 24, 2013 and are also currently available on the Google Play store.

[admin]

Yes, tradestar, the disconnect between the business development and the stock price gets ever larger. The business is firing from basically all cylinders, yet the stock price has reversed a good deal of the rally from the lows last year. This disconnect isn't going to last forever. The bigger it gets, and it is getting bigger as they beat and raised for 7 or 8 quarters, the more violent the correction upwards is going to be.

Unless something is going wrong in their business development, while that is always a possibility, it sure looks like all is running really well.

[tradestar2012]

Something also to note. Target does not take any product without sales data in various test markets. That means the ramp for NQ's products via US sales in diamond mobile, US cellular, 4g wireless, etc etc must be good enough for Target to want to allocate store space for NQ. Indirectly, this is telling us that the US ramp for NQ must be pretty good and that the attach rates that Omar was claiming on the call seems to be substantiated by the pickup from Target. I only know this because I helped launch a small consumer electronics company a few years ago and getting our product into Target was next to impossible without a few years of sales data and steady ramp and sales.

From Target's 2012 10k, they did $71Bn in revenues, of which 18% was allocated to electronics. Which would include mobile phones and accessories. Thats >$12bn in various electronics.