NEW YORK, June 13 (Reuters) - Shares of Orsus Xelent Technologies Inc ORS.A rallied on heavy volume on Monday, continuing a recent meteoric rise for the Beijing-based maker and distributor of cell phones.
The stock advanced 71 percent to $6.53 on volume of more than 240,000 shares, about seven times its 50-day average volume. Since a recent low of $1.45 reached on June 6, the stock has surged more than 350 percent.
The catalyst for the advances was not clear, and the company could not be contacted for a comment; the phone number for Orsus’ New York office was not in working order and no one answered at Focus Asia Partners, its investor relations firm.
The company’s most recent filing came on May 23, when it detailed delayed quarterly results for the period ended March 31. Orsus swung to a net profit in the quarter, though sales were down about 49 percent to $3.9 million. It has not issued a press release since Dec. 30, 2008, when it gave the minutes to its 2008 annual shareholders meeting.
The stock gains came despite Interactive Brokers Group Inc (IBKR.O) recently listing the company as one clients would be barred from buying on margin, citing “elevated risk concerns.” More than 160 securities were listed by Interactive, which made the announcement following a rash of accounting scandals that have led to delistings.
The scandals recently prompted the Securities and Exchange Commission to issue a bulletin of risk against investing in companies that enter U.S. markets through reverse mergers, as Orsus Xelent did. For details see [ID:nN08279183].
Short interest on Orsus has surged recently, rising 634 percent in the second half of May, according to data from Amex, where Orsus is traded.
Despite the recent gains at Orsus, the stock remains well under an all-time high of more than $90 reached in October 2007. Its current market capitalization is less than $10 million.
The company was created in March 2005 through a reverse merger between Universal Flirts Corp, a Delaware-based company, and United First International Ltd, which was the parent of Orsus Xelent. The name was changed shortly thereafter to Orsus Xelent. (Editing by James Dalgleish)