Mobile Telesystems OJSC (MBT): Today's Featured Telecommunications 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 Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day up 0.1%. By the end of trading, Mobile Telesystems OJSC fell 56 cents (-3.2%) to $17.09 on average volume. Throughout the day, 3.4 million shares of Mobile Telesystems OJSC exchanged hands as compared to its average daily volume of 2.6 million shares. The stock ranged in price between $17.04-$17.74 after having opened the day at $17.68 as compared to the previous trading day's close of $17.65. Other companies within the Telecommunications industry that declined today were: Inteliquent ( IQNT), down 15%, Nexxus Lighting ( NEXS), down 13.9%, Vicon Industries ( VII), down 6.3%, and Trunkbow International Holdings ( TBOW), down 5.9%.
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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 $17.34 billion and is part of the technology sector. The company has a P/E ratio of 11.9, below the average telecommunications industry P/E ratio of 29.1 and below the S&P 500 P/E ratio of 17.7. Shares are up 18.8% year to date as of the close of trading on Thursday. Currently there are four analysts that rate Mobile Telesystems OJSC a buy, one analyst rates 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, solid stock price performance and expanding profit margins. 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, NTS ( NTS), up 12.4%, Dialogic ( DLGC), up 8.6%, Telestone Technologies Corporation ( TSTC), up 8.3%, and B Communications ( BCOM), up 7.2%, were all gainers within the telecommunications industry with Telefonica Brasil S.A ( VIV) being today's featured telecommunications industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the telecommunications industry could consider iShares Dow Jones US Telecom ( IYZ) while those bearish on the telecommunications industry could consider ProShares Ult Sht Telecommunication ( TLL).

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