2 large NQ sellers appear to be done

[doublebagger448]

NQ was beaten down over the last 3 weeks due to 2 large sellers exiting small cap names with China exposure.  Color from a trading desk that trades NQ is that both sellers have not been active for the last 3 days and appear to be done....

NQ is anti-malware, privacy protection, etc. for smartphones…..malware is exploding on Android in the last 3 months.  Huge pain point and NQ is rapidly moving into enterprise deals now….massive 88% y/y organic growth rate, SaaS company that has a 15% FCF/Rev conversion already.  Company has $2.46 in net cash per ADR.  Company will do $50M in EBITDA in 2013.  SaaS companies are trading at well over 30x 2013 EBITDA that have less than half the growth of NQ.  At 30x 2013 EBITDA, NQ would be a $30 stock.

Certainly seems there is a path to $15-$20 over the next 12 months.

[admin]

Thanks for that trading desk color. The price has certainly recovered nicely and the timing of your SA article seems absolutely perfect at this point, congrats. We're already up 20%+ from there, in what was it, less than a week..

[doublebagger448]

If you take the time to understand the growth of smartphones globally, the dominance of Android (especially internationally), the explosion of malware over the past 3 months and NQ's differentiated solution to malware....then you may consider NQ one of those extremely rare investment opps that can truly be a 3-5 bagger.

Of course.....do your own due diligence.