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

To: Bruce Supranowicz who wrote (251)	12/29/1997 9:42:00 PM
From: David G.	Read Replies (1) \| Respond to of 1999

GS2 Securities released a research report this month which headlines "Iridium arrangement could provide significant earnings potential." Highlights of the report: * With Iridium scheduled to go on-line in 3rd quarter of 1998, Brightpoint "could realize revenues as early as second quarter of next year as Iridium begins to fill the pipeline for the September launch of its global network." * ... "Brightpoint is in the process of establishing an in-country presence in Latin America in the current quarter".... * "Brightpoint's competitive position has been strengthened by the extension of the North America's stragetic alliance and sole distributorship with Ericsson through 12/31/99, and the announcement that Brightpoint will become Nokia's sole authorized distributor in the United States effective January 1, 1998 through January 1, 2000. Brightpoint's relationship with Motorola appears to have improved significantly during the past year." * "Having expanded considerably its domestic value-added services business during the past twelve months, Brightpoint is experiencing increased international demand for its logistics services...." It goes on to list the multitude of new contracts that they have secured. * "Demand for wireless handsets in The People's Republic of China remains strong. Brightpoint has not experienced any order cancellations, reductions or postponements in recent months attributable to economic weakness in the region." * In so many words, based on EPS estimates, Brightpoint is discounted by more than 20% and deserves a growth PE of at least 30. [In other words, it should be trading at $20.40 or higher. I believe higher.] The report goes on to describe the rising financial results of Brightpoint from third quarter earnings. I received this report from Brightpoint investor relations. While on the phone, IR confirmed the statement that China represents 75% of their Asian business. IR went on to state that all the region's business is conducted with the government, military and executives, and that these sectors do not consider cellular communication devices to be a luxury. These folks consider cellular communication to be a basic need.