Mobile Telesystems OJSC (MBT): Today's Featured Telecommunications Winner

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 higher today making it today's featured telecommunications winner. The industry as a whole closed the day up 0.3%. By the end of trading, Mobile Telesystems OJSC rose 57 cents (2.7%) to $21.58 on average volume. Throughout the day, 1.7 million shares of Mobile Telesystems OJSC exchanged hands as compared to its average daily volume of two million shares. The stock ranged in a price between $21.13-$21.62 after having opened the day at $21.15 as compared to the previous trading day's close of $21.01. Other companies within the Telecommunications industry that increased today were: Telecom Italia SpA ADR ( TI.A), up 8%, Blonder Tongue Laboratories ( BDR), up 5.4%, Motricity ( MOTR), up 5.1%, and Polycom ( PLCM), up 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 $21.09 billion and is part of the technology sector. The company has a P/E ratio of 14.5, below the S&P 500 P/E ratio of 17.7. Shares are up 12.7% year to date as of the close of trading on Thursday. Currently there are five analysts that rate Mobile Telesystems OJSC a buy, one analyst rates it a sell, and one rates it a hold.

TheStreet Ratings rates Mobile Telesystems OJSC as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, expanding profit margins, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the negative front, Glowpoint ( GLOW), down 11.2%, FairPoint Communications ( FRP), down 9.6%, Phazar Corporation ( ANTP), down 6.3%, and Comtech Telecommunications Corporation ( CMTL), down 5.5%, were all laggards within the telecommunications industry with Ericsson Telephone Company ( ERIC) being today's telecommunications industry laggard.

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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