Stock Alert for Orsus Xelent Technologies Inc. (ORS)

Orsus Xelent Technologies Inc.  (AMEX: ORS) is an emerging designer and manufacturer of mobile phones for the Asian market, primarily the People’s Republic of China.   The Company’s business encompasses the design of mobile phones, related digital circuits, and software development, and it is a recognized pioneer in mobile phone integration technology.   Since the company’s launch in 2004, it has established “Orsus” as a popular brand.

Share Statistics (18-Oct-11)   FY

2009

FY

2010

%

Chg

Q2

2010

Q2

2011

%

Chg

Symbol ORS Revenue, $Mn 77.39 24.41 -68.5% 6.47 4.64 -28.3%
Current price $2.01 Gross marg. 12.2% 7.5% -38.5% 7.4% 8.4% 13.5%
52wk Range: $0.60-$7.29 Oper. margin -133.1% -7.4%
Avg Vol (3m): 82,788 Net margin -8.2% -194.1% 2267.1% -3.9% -62.1% 1492.3%
Market Cap. 5.07M              
Shares Outstanding 2.52M EPS, $ 0.56 -18.80 -3457.1% -0.10 -1.14 1040.0%

Source: Reuters.com, SEC Filings.

Investment Highlights

Shares in ORS have gained 87.3% in the last week and 64.8% in the last 30 days.  Year-to-date, the stock is down 9.4%.

Shares in the Chinese cell phone maker jumped as much as 73% Tuesday, advancing for a fourth day, without any news driving the stock price movement.  Trading volume rose to over 784K shares, about 27 times the 10-day average.

Over the past 52 weeks, the stock has ranged from a low of $0.60 to a high of $7.29. It is currently trading above its 50-day moving average of $1.32 and below its 200-day moving average of $2.33.

Financial Summary

ORS reported sales of $4.64 million for the second quarter ended  June 30, 2011, down from $6.47 million reported in the comparable quarter last year.  For the six months ended June 30, 2011, total sales were $8.56 million, down from $14.06 million in the same period last year.

The Company reported a net loss of $2.88 million for the latest quarter, against a net loss of $248.0K in the prior-year quarter.

For the first six months of 2011, ORS reported a net income of $29.15 million, or $11.78 per share, as against a net loss of $702K in the first half of 2010.  The Company attributed the result to a reversal of an allowance for bad debt resulting from a renewal of a third party guarantee on accounts receivable.

Source: http://biz.yahoo.com/e/110822/ors10-q.html

Financial Strength (18-Oct-2011)

Company

Industry

Sector

S&P 500

Quick Ratio (MRQ) 1.74 2.05 0.78
Current Ratio (MRQ) 1.36 2.12 2.63 1.15
LT Debt to Equity (MRQ) 0.00 19.38 11.39 109.73
Total Debt to Equity (MRQ) 40.76 31.33 20.07 146.14
Interest Coverage (TTM) -8.40 0.84 1.01 24.82

Source: Reuters.com, SEC Filings.

Technical Analysis

 

Source: http://stockcharts.com

ORS is above the upper Bollinger Band, implying that it is currently extended from its recent trend. Be aware, however, that a cross outside of the Bollinger Bands can sometimes be a signal of trend strength and not, necessarily, trend reversal.

ORS’s MACD is currently indicating a weak bullish signal. Although the MACD is trending above the signal line, the indicator is still below 0, which suggests that the underlying moving averages are bearish.

Comparative Analysis

Company Name Ticker Price per Mrkt. Cap. P/E P/S
Oct-18-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
Nokia Corp. NOK 6.13 22.74B 19.77 18.03 0.43 0.43
Motorola Mobility Holdings Inc. MMI 38.90 11.55B 76.27 27.99 0.84 0.77
Communication Equipment Median       13.33 n/a 0.93 n/a
Orsus Xelent Technologies Inc. ORX 2.02 5.09M n/a n/a n/a n/a

Source: Thomson Financial

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