CEO (Omar) and CFO marketing in NYC Monday and Tuesday
Piper is taking NQ Mobile around NYC this Monday....schedule is fully booked with 8 meetings and Canaccord is almost done booking out Tuesday. A friend that works at a NYC hedge fund forwarded me this short teaser overview on NQ that is being sent around to a few hedge funds that are looking for new ideas for 2013....
"NQ Mobile is anti-malware, privacy protection SaaS company for smartphones. Globally, 500M smartphones shipped in 2011 going up to 1.6B unit shipped in 2015. Android now has 75% market share of global smartphones and gaining further share due to its lower cost . That said, Android is an open architecture platform and is susceptible to malware. Malware is exploding on Android smartphones in the last few months (see recent data from Trend Micro) and malware is rapidly become a huge pain point. Criminals are targeting smartphones because people are increasingly keeping more of their financial and sensitive personal information on their smartphones. NQ has best-in-class anti-malware and privacy products delivered via a differentiated cloud-client architecture. The Company is rapidly moving into enterprise deals now….massive 88% y/y organic growth rate (most recent Q), SaaS company that is trading at 3.4X EV/EBITDA 2013 (SaaS comps are 34x EV/EBITDA with LOWER growth), has a 15% Revenue to FCF conversion already. NQ hired the ex-CTO of Samsung Mobile as the co-CEO at the beginning of 2012. He’s a rock star. Stock got crushed by 2 large holders liquidating for year-end. NQ looks like a 3+ bagger over the next 12 months."
The NQ story is too good to not see a few new funds want to take meaningful positions. Stock should climb back over $10 quickly and grind higher to $20+ over the next 12 months.
Was there any insight on what comprised the SaaS comp set? Was it bifurcated between chinese vs. non chinese companies? Also, why the push to value them against SaaS competitors vs. other chinese internet or security companies? I dont think Piper or Canacord research uses SaaS as comps. So why start now?