I posted a few times but it got drowned out by all the noise on the board today. Personally, I thought the CC was excellent.
1. Revenues would have been 800k higher had Feiliu been reported on a gross basis than net basis. Prior guidance was for Feiliu to do 20-25M on a gross basis. Feiliu has done soo well that even with the switch to gross, NQ is still standing by the 20-25M all in revenues for the year.
2. Nationsky was a homerun and exceeded estimates. Confirmed on the call. Nothing really to say other than they are doing well.
3. Just starting to see cross-selling from Feiliu and Nationsky and expect the synergies to continue to be realized.
4. Multiple buyers (financial + strategic) interested in investing in NQ. This could mean a lot of things, partial sale, full sale, JV of some sort, licensing agreement, etc etc. Given the language the company used, I'm inclined to believe it was for an outright sale. But it was rebuffed due to low ball offer? Or relative low ball offer. Either way, fair value is in the mid teens / low 20's...
5. Results do not include Americanmovil or full latin america roll out. So expect further acceleration in the coming quarters. Brazil over the summer will be huge as thats a population of 200M people.
6. I think the stock is trading like it did back in March of 2012, right before earnings it ran up 28% and then sold off hard after NQ met guidance and raised estimates. Over the following quarter however, the stock rose from $7.49 to $12.05...
Give the professional money managers some time to digest the earnings and CC. It was a good call and quarterly result. Not gangbusters, but fairly good for a seasonally weak quarter. I really didnt see much wrong with it and think most of the selling today was from shorts and from swing traders. Ive always been a buy and hold investor in NQ so I'm not terribly concerned with the price movement today. Once NQ gets to my target price, I will think about selling.
thanks for the reply Trade. I just posted a piece from Bloomberg which correlated sluggishness in Chinese tech plays and the overall Chinese economy with NQ's sell-off despite a solid, though not spectacular quarter. Personally, I think there was way too much expected for this Q. As for PPS, I think some weak retail got shaken today but institutional buyers will be in to take up stock and lower their cost basis. Also, I'm expecting the buy-side covering analysts to be issuing updated research notes, hopefully upgrades, shortly. That should give the PPS a kick-in-the-pants.
I listened to the early call and the replay, the on the dip I started buying again. This is stock tat gogie will not see again. I love the volume that was not ma and pa kettle fightin the shorts today. LOL
Also don't forget US cellular starting this month with a huge base to sign up retroactively and going forward.
I have also contacted management to fully execute on the share buyback authorization by expiration. Clearly this is just another channel to increase shareholder value that Omar alluded to and would reinforce investor confidence