NEW YORK (TheStreet) -- Shares of One Horizon Group (OHGI) exploded 111% to $2.29 in early afternoon trading Wednesday after the technology company, which sells Voice Over IP (VoIP) service, announced that its Chinese retail VoIP service, Aishuo, exceeded its two-month target with more than 3 million downloads.
The company rolled out Aishuo to Chinese smartphone users in late February.
In addition, SeeThruEquity updated its coverage on the stock.
"We see several potential catalysts ahead for OHGI in 2015. The company should generate growth in its core Horizon Platform business as global carriers deploy more of the company's service offerings to drive bandwidth efficiency and delivery turnkey mobile voice and messaging solutions to their customers," CEO Ajay Tandon announced.
"Moreover, OHGI appears to be generating meaningful traction in the early stages of its launch of Aishuo. OHGI announced that Aishuo had achieved more than 3.0mn subscriber downloads by the end of April, and is targeting 15mn subscribers after two years," Tandon continued. "We are maintaining our 12-month price target of $4.05 per share."
Separately, TheStreet Ratings team rates ONE HORIZON GROUP INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ONE HORIZON GROUP INC (OHGI) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- 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 Diversified Telecommunication Services industry. The net income has significantly decreased by 161.7% when compared to the same quarter one year ago, falling from $0.98 million to -$0.61 million.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Diversified Telecommunication Services industry and the overall market, ONE HORIZON GROUP INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 68.58%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 166.66% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- ONE HORIZON GROUP INC 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. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, ONE HORIZON GROUP INC swung to a loss, reporting -$0.07 versus $0.04 in the prior year. This year, the market expects an improvement in earnings (-$0.03 versus -$0.07).
- OHGI, with its very weak revenue results, has greatly underperformed against the industry average of 3.9%. Since the same quarter one year prior, revenues plummeted by 71.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- You can view the full analysis from the report here: OHGI Ratings Report