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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: BRANDYBGOOD who wrote (68258)	10/27/1999 1:52:00 PM
From: SMALL FRY	Respond to of 120523

CLRS - bounced off support and appear to be heading back up...maybe a nice one to watch here for a pickup around 19... <update> false move #1...back to earth and bouncing again. <LOL> SF

To: BRANDYBGOOD who wrote (68258)	10/27/1999 10:35:00 PM
From: stan s.	Read Replies (1) \| Respond to of 120523

CLST, Part of the reason for the pop today was Moody's confirmed a stable outlook this afternoon before close. From what I gather this also removes some speculation about an SEC probe. This report apparently allays those fears by not making mention of it. Tomorrow could be interesting, the chart is. MOODY'S CONFIRMS CELLSTARS SUB NOTES AT B2, SENIOR DEBT AT Ba3 Approximately $265 Million in Debt Affected New York, October 27, 1999 -- Moody's Investors Service confirmed the B2 rating of Cellstar Corp.'s $150 million 5% convertible subordinated notes due 2002, and confirmed the Ba2 rating on the company's $115 million revolving credit facility expiring 2002, and its B1 issuer rating. Cellstar's senior implied rating of Ba3 was also confirmed. The rating outlook is stable. The ratings had been placed on review for possible downgrade in April 1999. The ratings continue to reflect the volatility of Cellstar's operating environment, which will result in fluctuating margins and rapidly changing business strategies. About 80% of Cellstar's business is done outside of the U.S., most of it in fast growing markets in Latin America and Asia. The market for cellular handsets and accessories is also still in development with regards to the technology, and to the relationships among manufacturers, carriers, distributors, and resellers in different parts of the world. As a result, Cellstar's business model continues to shift as it seeks ways to continually provide value to its customers - the manufacturers and carriers - and maintain its competitive position. The company's medium term growth objectives may also be challenged by capital constraints, although Moody's believes the company is likely to obtain sufficient financing to carry out its growth objectives. The ratings are supported by Cellstar's size; by its operating flexibility, demonstrated by the company's recovery from adverse developments over the last year and enabling it to maintain its position and expand its presence in key markets; increased diversity in its base of customers and suppliers; and by a relatively low level of fixed expenses, which help to protect the company's prospective profitability and cash flow. Cellstar still has not filled key management positions, including the president and chief financial officer positions. Existing management, including stable regional management, has provided continuity in operations and controls, however. The company has also been successful at reducing relative SG&A expenses per its plan, despite recent systemic handset shortages and unexpected declines in sales in the U.S., as a result of its overhead reduction efforts and expansion in international markets.