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Technology Stocks : CLST - CellStar Corporation -- Ignore unavailable to you. Want to Upgrade?

To: STANLEY COHEN who wrote (115)	11/26/1997 4:44:00 AM
From: 4-UR-Eyes-Only	Read Replies (2) \| Respond to of 641

CLST should have a very strong 4Q in Sales due to: 1) The CDMA digital phone price is three times the price of analog. 2) Additional PCS competition will create record customer growth in 4Q. 3) Converting customers to digital network from analog by many carriers will increase digital phone sales. 4) Heavy carrier promotions and price reduction in 4Q will stimulate demand. 5) The margin for digital phones should be higher than analog. The negative side is the international sales to Asia will be affected by devaluation of Asian currencies except China. Taiwan's new PCS carriers will be in service in 4Q. But the appox. 15% devaluation of NT$ in the last two months will hurt the sales. I believe other than the currency problem. CLST should have a strong 4Q sales. Going forwad into 1998, the growth rate could be lower unless the Asian markets start to recover. If there is an earnings pre-warning in early December, CLST price may drop to low $20's.