Paul,
My thoughts are that CELL is a great buy here. The market is distracted with whatever at the moment and new money is sitting on its hands. However, the fundamental story behind wireless is fantastic and getting better, and CELL is very well situated to prosper.
After some more thought, I do not believe the CELL/CLST thing is zero sum, rather that some money has rolled out of CELL into CLST as being a cheaper play in the sector, although that disparity is now quite diminished versus a few weeks ago. The estimates for both companies for the next two years are almost identical, so I would expect the relationship between them to be almost at equipoise(with CELL deserving a higher multiple, at least for now...) CLST has a lot of momentum and bevy of news releases at the moment.
As to the industry in general, some think what these companies do is boring (read commodity) and deserves a discounted multiple to both the market and their growth rates. Of course what COKE, Gillette and, for that matter Dell all do is not rocket science, either, and their multiples are obviously not discounted. So my belief is that we are likely to see multiple expansion before too long, particularly if Q1 is really good, and then the simplicity and understandability of this business will become a virtue and not a defect. Telecom is heating up again and I fully expect these two companies to benefit as long as they execute.
Bottom line, I wish I had more money to accumulate more here, but I'm doing what I can....!
JG
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