Home » VectorVest » Mobile Streams (MOS) – VectorVest views as undervalued following Sept 6 trading update, rates as buy

Mobile Streams (MOS) – VectorVest views as undervalued following Sept 6 trading update, rates as buy

VVUKlogoMobile Streams Plc (MOS) licenses and distributes mobile content to mobile network operators and media companies. Its content portfolio includes games, music, pix, and video for mobile phones. The company retails its mobile content primarily through the mobile Internet in its Ringtones.com and MobileGaming.com superstores, mobile application stores and mobile opera
tor portals.

The company published a trading update on September 6, in regard to operations at its India subsidiary Mobile Streams India Private Limited. MSIP exceeded the important milestone of reaching 50,000 active subscribers, driven by subscription growth enabled by billing connections for the three largest local mobile phone operators. The Company said it expected to add additional billing connectivity to the next three largest network operators in India before the end of the calendar year. This has the potential to increase the addressable audience from the current c.600 million mobile users to around 900 million such users.

The growth at Mobile Streams had been picked up some time ago by UK stock screening company VectorVest. The system uses an Earnings Growth rate (GRT) calculation, which reflects a company’s one to three year forecasted earnings growth rate in percent per year. MOS has a forecasted Earnings Growth Rate of 23.00%, which VectorVest considers to be excellent

Another VectorVest metric is GPE (Growth to P/E Ratio), which compares earnings growth rate to P/E ratio. MOS.L has a GPE rating of 1.47. With long-term interest rates currently at 3.79%, the operative GPE ratio for MOS is 0.14, and therefore may be considered to be undervalued.

VV_MOSThe chart of MOS.L is shown here. The value of the share is shown by the green line above the price. Sooner or later the price and valuation will coincide. Sometimes this occurs in a linear fashion but in smaller counters the move tends to be quick, explosive and news driven. The sudden jump in price was preceded and forecast by a jump in earnings growth rate (purple line in the window below price) from zero to an excellent 23% in the first three months of this year.

Since June 2016 the share has been sitting on support at 4p. The “tails” or “wicks” on the candles at that level are indicative of accumulation by insiders and those traders that have done their research. A Unisearch for undervalued shares that are showing a high rate of change in earnings growth will uncover many trading opportunities, easily, with a few mouse clicks.

In summary, MOS.L is undervalued compared to its Price of 9.5p per share, and despite offering somewhat below average safety, is currently rated a Buy.

David Paul

7th September 2016

PS: Readers can examine the opportunity at Avesco, and indeed on a host of other similar stocks for a single payment of £5.95. This gives access to the VectorVest Risk Free 5-week trial, where members enjoy unlimited access to VectorVest UK & U.S., plus VectorVest University for on-demand strategies and training. Link here to view.

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VectorVest Unisearch

On VectorVest a simple search using the Unisearch tool will quickly find shares that are undervalued with good fundamentals that have just issued a Buy recommendation. This will give the active trader a short list of many high probability trading opportunities each week. Traders now have the opportunity to spend five weeks discovering VectorVest’s unique simplicity, automation and independent guidance. Just £5.95 buys a 5 week trial to enable deep exploration, or how the system can assist in smarter trading in as little as 10 minutes a day. Powerful tools. Proven strategies. Unique Perspectives.

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European Financial Publishing Limited T/A VectorVest UK (VectorVest) is authorised and regulated by the Financial Conduct Authority under register number 543038. You should remember that the value of investments and the income derived therefrom may fall as well as rise and you may not get back the amount that you invest. Past performance is not a reliable guide to the future. This material is directed only at persons in the UK and is not an offer or invitation to buy or sell securities. If investors are in any doubt of the suitability of an investment given their individual circumstances, they are recommended to contact an investment manager or independent financial adviser who may be able to provide tailored advice. Opinions expressed whether in general or both on the performance of individual securities and in a wider economic context represent the views of VectorVest at the time of preparation. They are subject to change and should not be interpreted as investment advice. VectorVest and connected companies, clients, directors, employees and other associates, may have a position in any security, or related financial instrument, issued by a company or organisation mentioned on this site. European Financial Publishing Limited is a company incorporated in Scotland under Company Number SC357322 with its registered address at Exchange Tower, 19 Canning Street, Edinburgh EH3 8EH. Email: support@VectorVest.com

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