Brightpoint - CELL Message Board

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Technology Stocks : Brightpoint - CELL

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To: Mike Milde who wrote (906)	8/31/1998 2:45:00 PM
From: Paul Shread	Read Replies (1) of 1999

Brian's probably the best person to answer that, but he signs on infrequently lately, so I'll give it a shot. The company is 30% exposed to China, but most of that goes to the government and the military, which likely would be the last market to dry up. They are taking steps to reduce currency risk in emerging markets by converting to dollars right away. I also believe they have minimum margins built into their contracts. I for one believe the Chinese understand perhaps more than anyone the link between GDP and teledensity (I'm also long CHL), and thus this should continue to be a growth area for CELL. IRIDF should provide a boost when it comes on line next month (CELL won the distribution contract), and hopefully CELL will win the GSTRF contracts befrore their launch next year. Sprint PCS should also provide a boost to revenues. The bottom line is, yes, there is risk, but I believe it has been over-priced into the stock at this point. I believe the company will post long-term earnings significantly higher than the 15% the market has priced into this stock at a PE of 15 or so. Paul

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