Mobile Telesystems OJSC (MBT): Today's Featured Technology Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Mobile Telesystems OJSC ( MBT) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day up 1%. By the end of trading, Mobile Telesystems OJSC fell 49 cents (-2.5%) to $19.18 on heavy volume. Throughout the day, 6.1 million shares of Mobile Telesystems OJSC exchanged hands as compared to its average daily volume of 2.3 million shares. The stock ranged in price between $19.08-$19.94 after having opened the day at $19.84 as compared to the previous trading day's close of $19.67. Other companies within the Technology sector that declined today were: Pulse Electronics ( PULS), down 16.9%, Linktone ( LTON), down 11.7%, DynaVox ( DVOX), down 10.7%, and Friendfinder Networks ( FFN), down 9.5%.
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Mobile TeleSystems OJSC, together with its subsidiaries, provides telecommunications services primarily in the Russian Federation, Ukraine, Uzbekistan, Armenia, and Belarus. Mobile Telesystems OJSC has a market cap of $19.53 billion and is part of the telecommunications industry. The company has a P/E ratio of 13.5, below the average telecommunications industry P/E ratio of 32.7 and below the S&P 500 P/E ratio of 17.7. Shares are up 34% year to date as of the close of trading on Thursday. Currently there are five analysts that rate Mobile Telesystems OJSC a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Mobile Telesystems OJSC as a hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and generally higher debt management risk.

On the positive front, Deltathree ( DDDC), up 19.1%, Trio-Tech International ( TRT), up 17.6%, Analogic Corporation ( ALOG), up 16.3%, and MERU Networks ( MERU), up 15.9%, were all gainers within the technology sector with EMC Corporation ( EMC) being today's featured technology sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

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