Today's Dead Cat Bounce Stock Is Mobile Telesystems OJSC (MBT)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Mobile Telesystems OJSC ( MBT) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Mobile Telesystems OJSC as such a stock due to the following factors:

  • MBT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $30.5 million.
  • MBT has traded 169,565 shares today.
  • MBT is up 7.8% today.
  • MBT was down 10.8% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in MBT with the Ticky from Trade-Ideas. See the FREE profile for MBT NOW at Trade-Ideas

More details on MBT:

Mobile TeleSystems OJSC provides a range of mobile and fixed line voice and data telecommunications services in Russia and the CIS. It offers data transfer, broadband, pay-TV, and various value-added services, as well as sells equipment and accessories. The stock currently has a dividend yield of 12.9%. MBT has a PE ratio of 8.2. Currently there are 2 analysts that rate Mobile Telesystems OJSC a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Mobile Telesystems OJSC has been 2.7 million shares per day over the past 30 days. Mobile Telesystems OJSC has a market cap of $8.3 billion and is part of the technology sector and telecommunications industry. Shares are down 68% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Mobile Telesystems OJSC as a hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • MOBILE TELESYSTEMS OJSC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MOBILE TELESYSTEMS OJSC increased its bottom line by earning $2.34 versus $1.04 in the prior year. This year, the market expects an improvement in earnings ($69.45 versus $2.34).
  • The gross profit margin for MOBILE TELESYSTEMS OJSC is currently very high, coming in at 70.39%. Regardless of MBT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 13.92% trails the industry average.
  • The revenue fell significantly faster than the industry average of 58.3%. Since the same quarter one year prior, revenues fell by 43.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Wireless Telecommunication Services industry. The net income has significantly decreased by 55.2% when compared to the same quarter one year ago, falling from $582.32 million to $260.98 million.
  • Net operating cash flow has decreased to $738.50 million or 49.00% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

null

More from Markets

Morgan Stanley M&A Prowess to Remain Strong; Google Dealt Another EU Fine--ICYMI

Morgan Stanley M&A Prowess to Remain Strong; Google Dealt Another EU Fine--ICYMI

Trump's Trade War Hurts U.S. Energy Companies, May Help China

Trump's Trade War Hurts U.S. Energy Companies, May Help China

One Chart Will Make You Even More Pumped Up to Buy Tech Stocks

One Chart Will Make You Even More Pumped Up to Buy Tech Stocks

Jim Cramer's Biggest Moments From Delivering Alpha

Jim Cramer's Biggest Moments From Delivering Alpha

'I Don't Think the Market Always Has the Right Idea' Says Bannon

'I Don't Think the Market Always Has the Right Idea' Says Bannon