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Technology Stocks : Brightpoint - CELL -- Ignore unavailable to you. Want to Upgrade?

To: JakeStraw who wrote (1873)	10/23/1999 10:23:00 AM
From: Stephen J. Eisenreich	Read Replies (3) \| Respond to of 1999

Bounsall said that some of the new agreements they have signed are small but others are quite significant. Because of the agreements they have with the other parties they are not allowed to talk out in the open about the dollar value of the contracts. He indicated that when taken together these new agreements "will" and then corrected himself by saying "should" contribute substantially to revenues and bottom-line earnings. I don't know if his corrected statement has any meaning or not. I try not to read anything into it but am hopeful he meant what he said the first time. The $85 million dollar charge was taken last quarter and will not be reflected in this quarters earnings except for some modifications in the way those charges were taken. Accounting procedures I assume. Obviously it would have been inappropriate to ask whether he felt they would beat earnings estimates and he couldn't have commented anyway. I asked if we should expect any kind of negative news when earnings and the subsequent 10-Q go up and although he didn't answer the question directly, I sensed that forward-looking statements could be bullish. He indicated that they are continuing to both pursue and sign new contracts for sales, distribution and warehousing and that they were optimistic. The question I wish I had asked, which I didn't, was whether he saw future improvements in margins. Damn!! Sooo..., what do I make of this? I'm not overly confident that they will exceed estimates by much although I think they will meet them and possibly be a cent or two higher. I think that what those of us who don't day trade need to listen to are the forward-looking statements because I believe that next quarter and subsequent ones after that will reflect company growth and accelerated earnings. An open question about earnings coming out on the 28th is how much of those will be the result of divestiture of non-profitable operations and how much will be the result of new or increased business if earnings improve. Gross revenues this quarter may not be reflective of actual growth because even though profit margins were negative for the operations that fell under the non-recurring expenses those revenues will be lost as well. There will be a lot to consider when looking at their balance sheet this quarter. I also think that their has been some recent accumulation of this stock by funds. Just a feeling. Since analysts often don't raise their ratings until after they are in and have realized gains, I don't look for any upgrades until after the earnings are posted. Finally, I believe this will be a good stock to own two quarters from now barring any radical market corrections.