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 down 0.3%. By the end of trading, Mobile Telesystems OJSC fell $0.44 (-2.3%) to $18.97 on heavy volume. Throughout the day, 3,497,358 shares of Mobile Telesystems OJSC exchanged hands as compared to its average daily volume of 1,804,700 shares. The stock ranged in price between $18.94-$19.49 after having opened the day at $19.46 as compared to the previous trading day's close of $19.41. Other companies within the Telecommunications industry that declined today were: ARC Group Worldwide ( ARCW), down 8.9%, Ubiquiti Networks ( UBNT), down 8.0%, Parametric Sound ( PAMT), down 6.4% and Ambient Corporation ( AMBT), 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 $19.2 billion and is part of the technology sector. The company has a P/E ratio of 18.9, above the S&P 500 P/E ratio of 17.7. Shares are up 3.3% year to date as of the close of trading on Monday. Currently there are 6 analysts that rate Mobile Telesystems OJSC a buy, no analysts rate it a sell, and 1 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 revenue growth, increase in net income, increase in stock price during the past year, growth in earnings per share and expanding profit margins. 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 positive front, Oi ( OIBR), down 20.7%, WPCS International ( WPCS), down 11.0%, Net Element International ( NETE), down 10.4% and Otelco Inc. Class A ( OTEL), down 7.3% , were all gainers within the telecommunications industry with AT&T ( T) 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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