Trader’s Buzz: NQ Mobile Inc. (NQ), Chembio Diagnostics (CEMI), Novavax (NVAX), Pain Therapeutics (PTIE)

NQ Mobile Inc. (NQ) stock is up more than 14% in morning trading in the stock market today, following the company’s filing of its annual report for the year ended December 31, 2013 on Form 20-F with the U.S. Securities and Exchange Commission. The annual report on Form 20-F, which contains the unqualified audited financial statements for the three years ended December 31, 2013, includes among many other points the following conclusions:

– Mobile Inc.’s cash (and cash equivalents) of $283 million as of December 31, 2013 was verified and found consistent with public disclosures and major expenditures were confirmed as having been incurred for legitimate business purposes.

– The company’s acquisitions were evaluated using reasonable metrics and internal due diligence processes, and those acquisitions have contributed to increasing the Company’s revenue and user traffic.

– The Audit Committee was able to conclude that there was no evidence of an effort within the Company to delete any documents relevant to the Special Committee’s investigation. Additional, highly specialized, forensic examination of devices where there was an indication that information might be missing as identified by the Special Committee was conducted by Control Risks Group, at the direction of DLA Piper LLP, and the examination protocol was reviewed by Stroz Friedberg. As a result of this examination, Control Risks Group and DLA Piper LLP were able to recover and review many files from the subject devices that were deleted prior to and subsequent to the publication of the Muddy Waters report but prior to the collection of data from those devices by the Special Committee. None were relevant to the fraud allegations or the Special Committee’s investigation.

On valuation measures, NQ Mobile has a forward P/E of 6.40 and t-12 price-to-sales ratio of 2.74. EPS for the same period is ($0.05).

In the past 52 weeks, shares of Beijing, China-based firm have traded between a low of $3.45 and a high of $22.33 and are now at $9.87. Shares are down 26.05% year-over-year and 39.18% year-to-date.

Shares of Chembio Diagnostics, Inc. (CEMI) soared nearly 18 percent in early trading on Monday after the company announced that it has entered into an exclusive agreement with Integrated BioTherapeutics, Inc. (IBT), a biotechnology company focused on the discovery of novel vaccines and therapeutics for emerging infectious diseases.

Under the terms of the agreement, Chembio will combine its patented DPP technology with IBT’s proprietary Ebola reagents to develop POC diagnostic tests for Ebola and febrile illness. Chembio will have exclusive rights to any POC product developed through this agreement. Financial terms of the agreement were not disclosed.

Chembio Diagnostics, currently valued at $44.11M, has a median Wall Street price target of $5.00 with a high target of $6.00. Approximately 414,797 shares have already changed hands, compared to the stock’s average daily volume of 49,366.

In the past 52 weeks, shares of Medford, New York-based company have traded between a low of $2.83 and a high of $5.20 with the 50-day MA and 200-day MA located at $3.71 and $3.42 levels, respectively. Additionally, shares of CEMI trade at a P/E ratio of -1.92 and have a Relative Strength Index (RSI) and MACD indicator of 67.85 and +0.29, respectively.

CEMI currently prints a one year return of about 6.40% and a year-to-date return of around 18.39%.

Novavax, Inc. (NVAX) popped 5% on Monday after the drug maker said it expects to initiate a Phase 1 clinical trial of its Ebola vaccine in December. According to the company, plans to demonstrate the safety and efficacy in a large-scale global clinical trial will be developed based on data from the Phase 1 trial and in collaboration with global regulatory authorities and world health agencies.

NVAX prints a one year return of about 86% and a year-to-date return of around 5%. Ticker currently trades between a 52-wk low of $2.68 and a 52-wk high of $6.95.

Pain Therapeutics (PTIE) shares are falling sharply, down 59% to $1.71 on Monday, after Pfizer (PFE), the world’s second biggest drugmaker by revenue, said it has decided to discontinue its agreement to develop and commercialize Pain Therapeutics’ Remoxy extended-release treatment for pain. Pfizer also said it will return all rights, including responsibility for regulatory activities to PTIE.

Pain Therapeutics is printing a higher than average trading volume with the issue trading 2,236,093 shares, compared to the average volume of 177,608. The stock began exchanging hands this morning at $1.99 and is currently down $2.45 from the prior days close of $4.15. On an intraday basis it has gotten as low as $1.61 and as high as $2.00.

PTIE shares are priced at 3.00x this year’s forecasted earnings compared to the industry’s (9.31)x earnings multiple. The company’s current year and next year EPS growth estimates are (142.90%) and (33.30%) compared to the industry growth rates of 53.00% and 48.00%, respectively. PTIE has a t-12 price/sales ratio of 5.10. EPS for the same period registers at $0.57.

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