Tech Sector Scratching Out Moderate Gains; NQ Mobile Jumps After Refuting Short-Seller Accusations

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Technology stocks were higher this afternoon, with shares of technology companies in the S&P 500 posting a 0.3% gain.

In company news, NQ Mobile Inc. ( NQ ) jumped more than 35% Wednesday after a special audit committee said it could find no evidence the Chinese wireless security and privacy company intentionally inflated its reported sales figures.

"The investigation team did not find evidence that the company's revenues were inconsistent with public disclosures," NQ Mobile said in a statement this morning. The probe followed accusations by Muddy Waters Research LLC, an investment fund led by Carson Block, a short-seller focused on uncovering alleged fraud by Chinese companies trading in the U.S. markets.

The company also said its board of directors ordered management to launch internal controls proposed by the investigative team comprised of independent board members, with additional assistance from the Shearman & Sterling LLP law firm and the accounting firm Deloitte & Touche.

NQ American depository shares reached an intra-day high of $10.55 each, before easing slightly to their current range around $10.30 a share. The stock has a 52-week range of $6.25 to $25.90 a share, climbing nearly 31% in value over the past year.

In other sector news,

(+) DRWI, (+17.9%) Boosts Q1 revenue outlook, forecasting 60% growth in Q1 revenue over Q4 levels, up from 50% in its prior guidance and equating to around $28.6 mln, topping the Capital IQ consensus by around $1.7 mln.

(-) FCEL, (-7.2%) Q2 net loss of $15.8 mln, of $0.07 per share, more than double its $7.4 mln loss last year. Excluding items, it lost $0.04 per share, or $0.01 wider than estimates. Revenue declined 9.7% year over year to $38.3 mln, trailing Street view by $6.88 mln.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: NQ

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